Preview

INTERNATIONAL LABOUR OFFICE

STUDIES AND REPORTS
Series M (Social Insurance) No. 13

INTERNATIONAL SURVEY
OF

SOCIAL SERVICES
1933
VOLUME II

GENEVA
1936
Published in the United Kingdom
For

the

INTERNATIONAL LABOUR O F F I C E (LEAGHJE OF N A T I O N S )

B y P . S. K I N G & SON, Ltd.
Orchard House, 14 Great Smith Street, Westminster, London, S.W.I

A-\

X - h , !3. H3¿

Printed in Great Britain by E Y B E AKD SPOTTISWOODB LIMITED

His Majesty's Printers
East Harding Street, London, E.C.4

CONTENTS
TAGE

INTRODUCTION

vii

LJST OF NATIONAL MONOGRAPHS :
ARGENTINA

AUSTRIA

BRAZIL

CZECHOSLOVAKIA

DENMARK

127

ESTONIA

165

GREECE

183

HUNGARY

199

LATVIA

223

LUXEMBURG

235

MEXICO

279

N E W ZEALAND

285

POLAND

325

PORTUGAL

365

RUMANIA

379

SPAIN

401

SWITZERLAND

425

URUGUAY

487

YUGOSLAVIA

503

A List of Social Services is given at the beginning of each National
Monograph.

G 14641

a s

INTRODUCTION

Volume I I of the second edition of the " International
Survey of Social Services " contains studies of the working, in
1933, of the social services of the following 19 countries :
Argentina
Austria
Brazil
Czechoslovakia
Denmark
Estonia
Greece
Hungary
Latvia
Luxemburg

Mexico
New Zealand
Poland
Portugal
Rumania
Spain
Switzerland
Uruguay
Yugoslavia

The plan on which these studies have been prepared is the
same as that adopted for the first edition of the Survey, which
is reproduced in the Introduction to Volume I of the second
edition.
The national monographs were examined and approved by
the Committee on Social Charges at its sixth session, held at
Geneva on 23 April 1936, and on the proposal of the Committee
the Governing Body, a t its session in April 1936, authorised the
Office to publish Volume I I of the Survey.
The monographs on some of the countries are incomplete.
In several cases statistics are lacking ; in others neither information on legislation nor statistics could be given, especially as
regards social assistance services, housing, family allowances,
and holidays with pay. This does not mean, however, t h a t
there are no such social services in the countries in question,
but merely t h a t in spite of prolonged effort the Office did not
succeed in obtaining the information asked for from the national
administrative departments concerned.
With this volume the study of social services in 1933 that
was begun by the Office in April 1934 has been brought to
completion by the middle of 1936. I t may be objected that the
publication has been rather much delayed. The reply lies in the
explanation given in the introduction to the first edition of the

vin

INTRODUCTION

Survey, relating to social services in 1930. Official national
reports on the working of social services are published by the
administrative departments in some countries six months, in
many others twelve months, or even eighteen months or two
years, after the end of the fiscal year to which they relate.
Thus the Office did not receive the majority of the national reports
on the working of social services in 1933 until 1935.
In spite of this unavoidable delay the data published by the
Office on the working of social services in 1933 may still be
regarded as of undoubted value. In particular, a comparison of
the texts and figures for 1930 and 1933 for any one country gives
some idea of the effects of the depression on its social services,
and on the level of protection enjoyed by the persons covered
by social insurance and assistance laws and regulations.

ARGENTINA
SUMMARY
PAGE

FIRST PART :

Statistics of Population...

...

II.—Bank Clerks' Invalidity, Old-Age, and
Widows' and Orphans' Insurance
...

III.—Subsidised Benefit Schemes for StaSs of
Public Undertakings
...
...
...

SECOND P A B T : Social Insurance

...

I.—Workmen's Compensation

x O 14641

...

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3
FIRST

PART

STATISTICS OF POPULATION
CENSUS

1914. 1

GAINFULLY OCCUPIED POPULATION OVER
CLASSIFIED BY OCCUPATIONAL G B O T J P S

YEAES,

Males

Females

Total

488,288
488,238
272,429
109,156
99,006
9,641
54,719

41,578
352,999
21,217
1,618
5,145
39,752

529,866
841,237
293,646
110,774
104,151
9,641
94,471

35,908
891,065

182,711
25,678

218,619
916,743

2,448,450
327,581
2,776,031
4,227,023

670,698
1,580,185
2,250,883
3,658,214

3,119,148
1,907,766
5,026,914
7,885,237

Occupational groups
Agriculture
Industries a n d handicrafts
Commerce
Transport and communications
Public administration
National defence ...
Professional service
Domestic a n d personal service
(including hotels)
Occupations insufficiently described
Total gainfully occupied population (over 14 years)'
Total unoccupied (over 14 years)
Total population (over 14 years)...
Total population 3

—

i The International Labour Office has not been able to obtain more recent statistics.
2 Excluding rentiers (35,091 males, 28,381 females), students (29,706 males, 13,646 females),
beggars (289 males, 341 females), inmates of asylums (1,257 males, 693 females), pensioners (3,567
males, 1,134 females).
8
Not including the autochthon population (10,138 males, 8,287 females).
SOURCE : Tercer Cerno Nacional, 1 June 1914, Vol. IV, Población, Buenos Aires, 1916.

SECOND

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
The compensation of industrial accidents and occupational diseases
is based on Act No. 9688 of 11 October 1915, the administrative
regulations of 14 January 1916, and the Decrees of 12 November 1917,
7 March 1927, 29 September 1927, 27 July 1928, 21 May 1930,
24 October 1931, 19 February 1932 and 22 November 1933.
2.—Scope.
The legislation applies to all wage-earning and salaried employees
whose annual remuneration does not exceed 3,000 pesos and who are
employed in the following industries :
(a) Factories, workshops and industrial establishments in which
other than man-power is used for the work ;
(6) The construction, maintenance and repair of buildings, railways,
harbours, quays, canals and similar works; mines and quarries;
transport, loading and unloading; the manufacture and use of

ABGBNTINA

explosive and inflammable materials and of electrical materials ; the
installation, repair and removal of telegraph equipment and lightning
conductors ; the transport and -working of machines in forestry and
agriculture; all similar undertakings brought under the Act by the
Executive Authority; aerial navigation and the aeronautical
industries.
3.—Administration.
The risks may be borne :
(a) By the employer, who then remains his own insurance carrier ;
(6) By insurance companies or employers' mutual aid associations,
which must be duly recognised as such and satisfy certain conditions
(for example, they must deposit 50,000 pesos with the National Bank
and organise their social insurance and private insurance transactions
separately).
The accident section of the National Pension Fund is responsible
for the payment of compensation due to persons injured as the result
of industrial accidents and to their dependants, the insurance carrier
being obliged to pay the capital corresponding to such compensation
into the National Pension Fund within 30 days from the date of the
accident. The Fund converts such amounts into Argentine national
bonds and pays every month the interest on such bonds to the
beneficiaries. The Fund also pays any compensation which insurance
carriers are unable to pay as the result of insolvency.
4.—Financial Resources.
In theory, the employers are required to meet the entire cost of
workmen's compensation for accidents, but, in practice, the State
takes over part of the cost by assuming responsibility for the expenditure entailed by the provision of medical treatment and medicines for
injured persons.
The accident section of the National Pension Fund obtains its
income from the sums deposited by insurance carriers to cover cost of
compensation, from pensions left by beneficiaries dying without
leaving an heir, from pensions due to foreigners who have left the
country, from fines for infringements of the Act, etc.
5.—Benefits.
(a) Definition of the risks covered.
Insurance covers accidents sustained by workers in the course of
the performance of work assigned to them and due to a fortuitous
cause or unavoidable circumstances inherent to the work.
Occupational diseases are also covered. The Regulations of 1916
state that compensation is payable in respect of pneumoconeosis,
pulmonary tabacosis, anthracosis, siderosis, lead poisoning, mercury
poisoning, copper poisoning, arsenic poisoning, ophthalmia caused by
ammonia, poisoning by bisulphide or carbide fumes, poisoning by
carburetted hydrogen, poisoning by phosphorus, anthrax, dermatitis
and ankylostomiasis. The Decree of 19 February 1932 added undulant
fever to the list.
A2

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The Regulations of 1916 defined occupational diseases as those
which are exclusively due to work performed by the victim in the
course of his employment.
The worker affected by one of the occupational diseases mentioned
above is entitled to claim compensation provided that the disease
was contracted during the 12 months preceding incapacity. No
compensation is payable if it can be shown that the worker contracted
the disease before engaging in the occupation which he is forced to
abandon.
The employer who last employed the worker affected by an
occupational disease is responsible for the payment of compensation.
If it can be proved that the disease was contracted during employment
with a previous employer, the latter is responsible for the payment of
compensation. If by its nature the disease could have been gradually
contracted, the various employers who employed the victim during the
year when incapacity became a fact are jointly responsible. The
share of each employer is fixed by agreement ; when no agreement is
reached, the sums due are fixed by arbitration.
(b) Benefits in kind.
The most immediate obligation of the employer is to supply the
injured person with medical treatment and medicines without delay.
When the accident is due to a fault on the part of the employer,
the latter is required to provide medical treatment and medicines free
of charge until the injured person is able to resume work.
In other cases the cost of medical treatment and medicines is
borne by the State.
(c) Cash benefits.
1. Benefits in cuse of temporary incapacity.—Workers affected by
total temporary incapacity are entitled to benefit. The state of
total temporary incapacity ceases when the worker is declared to be
cured, or at the latest one year after the accident if by then the worker
has not recovered his health.
The Regulations of 1916 make a distinction between recovery
without incapacity and recovery with incapacity. In the first case,
the worker is declared to be cured as soon as his injuries have healed,
unless a further period of treatment is necessary to ensure the normal
working of injured organs. The second case arises when, even after
the healing of the injuries, a certain degree of incapacity exists ; the
worker is then classified as totally incapacitated or partially
incapacitated.
A worker who is temporarily incapacitated is entitled to compensation equal to one-half of his average daily wages calculated on the
basis of the last 12 months' earnings, compensation being payable
from the day the accident occurs until the worker is able to resume
work.

ARGENTINA

2. Benefit in case of permanent incapacity.—Permanent total
incapacity is that which prevents work of any kind. The regulations
mention the typical cases of total incapacity as well as the cases of
partial incapacity considered to be total incapacity in certain conditions
relating to the age and sex of the injured person.
Permanent partial incapacity is that which prevents the worker
from exercising his usual trade but allows him to work in some other
branch. The regulations contain a schedule of degrees of incapacity.
In case of permanent total incapacity, the injured person is entitled to
compensation equal to the total wages earned during the last 1,000
working days but compensation may in no case exceed 6,000 pesos.
In case of permanent partial incapacity, the injured person is
entitled to compensation equal to 1,000 times the daily loss of earnings
entailed for the injured person as a result of the accident.
3. Survivors' benefits.—If the accident results in the death of the
injured person, the employer is required to pay to the survivors
compensation equal to the total wages earned during the last 1,000
working days, but such compensation may not exceed 6,000 pesos.
The employer is also required to pay the cost of burial, which may
not, however, exceed 100 pesos.
The following persons are entitled to survivors' benefit : the
surviving widow (or widower) and children under age, grandsons and
brothers, sisters under 16 years, and relatives in the ascending line
provided that they were dependent upon the deceased at the time of
the accident.
No statistics are available for 1933.

H.—Bank Clerks' Invalidity, Old-Age, and Widows' and Orphans'
Insurance
1.—Legal Basis.
The insurance system is regulated by Act No. 11232 of 5 December
1923, as amended by Act No. 11575 of 5 December 1929 and Decree
No. 54 of 14 May 1930.
2.—Scope.
Insurance is compulsory for all persons employed at a fixed
remuneration in private undertakings permanently engaged and
devoting their main attention to banking and credit operations.
Insurance also covers the staff of the special insurance institution set
up to administer the scheme.
3.—Administration.
The insurance system is managed by the Bank Clerks' National
" Pension Fund. The board of management comprises a chairman
appointed by the Head of the Executive Authority, two representatives
elected by the staff and two elected by the undertakings, each undertaking having a number of votes in proportion to its wages bill for the
year preceding the election.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The income of the insurance system is derived from :
(a) The contributions of the insured persons (contributions and
occasional deductions) :
(1) The insured person's contribution varies with the amount of
salary, being 5 per cent, of salaries up to 500 pesos, 6 per cent.
from 501 to 1,000 pesos, 7 per cent, from 1,001 to 1,500 pesos;
no contribution is payable on salary in excess of 1,500 pesos.
(2) In addition to the ordinary monthly contribution, the
insured person must agree to the following salary deductions :
(i) an amount equal to the first month's salary, payable in
20 monthly instalments ; (ii) an amount equal to the difference
between the former and new salary for the first month, whenever the insured person's salary is raised or he occupies several
posts in the affiliated undertakings ; (iii) a special contribution
which allows insured persons to claim recognition for years of
service completed prior to the promulgation of the Act of
5 December 1929 and subsequent to that of 9 October 1923.
(b) The bank's contribution. This is fixed for each bank at 8 per
cent, of the total wages bill. Banks are also required to pay a special
contribution to cover the deficit caused by the payment of pensions in
the calculation of which are included previous services for which no
employer's or employee's contribution has been paid.
(c) Interest on capital (reserve fund, property) and from fines
imposed for infringement of the Insurance Act.
5.—Benefits.
(a) Definition of the risks covered.
1. Invalidity.—All persons who, as a result of a medical examination,
are declared to be physically or mentally incapable of continuing to
carry out their duties, or any other duties compatible with their
ordinary aptitudes or their vocational training, are deemed to be
incapacitated. As a general rule, the Act requires the completion of a
qualifying period of 10 years' employment.
2. Old age.—A pension is granted to insured persons of at least
50 years of age after 30 years' service. An insured person who, on
reaching 45 years of age, has already completed 30 years' service, is
entitled to claim his retiring pension without further delay. Persons who
satisfy the conditions in respect of age and service may, on the other
hand, postpone claiming a retiring pension for a period of five years.
The allocation of a pension is conditional on the cessation of all
occupational activity. Insured persons who, after not less than 10 years'
service, voluntarily resign from their position in an undertaking, are
entitled to the refund of their contributions without interest.
3. Death.—The insurance system makes provision for survivors'
pensions and lump-sum payments to the dependants of insured
persons.

ARGENTINA

4. Loss of employment.—Provision is also made for the payment of
unemployment benefits to insured persons who are dismissed either
because their employer has no further need of their services, or as a
result of economy measures, or because the undertaking in which they
are employed ceases its activities, or for any other reason with the
exception of a conviction in the criminal courts.
(b) Gash benefits.
1. Invalidity benefits.—(i) Pensions.—The invalidity pension is
based on the average remuneration earned during the last five years'
employment and amounts to 3£ per cent, of the average annual salary
for each year of service, up to a maximum of the average annual salary.
An insured person who becomes permanently incapable of work while
performing his duties and from a cause entirely due to the performance
of his duties, is entitled, irrespective of his length of service, to a special
invalidity pension equal to 40 per cent, of the salary he was receiving or
of the average salary during his last five years' employment, plus an
increment of 2 per cent, for each year of service ; in this case, no
qualifying period is required.
(ii) Lump-sum payment.—A lump-sum payment is made to insured
persons who become permanently incapable of work before completing
ten years' service. This sum is equal to one month's instalment of
the average salary received by the insured person for each year of
service covered by insurance.
2. Old-age pensions.—(i) Ordinary pension.—The old-age pension
amounts to 75 per cent, of the average salary up to 500 pesos, 70 per
cent, of the average salary up to 1,000 pesos, and 65 per cent, of the
average salary up to 1,500 pesos. Employees who have completed
thirty years' service on reaching 50 years of age but who continue in
employment are entitled to a pension equal to 1^ per cent, of the basic
pension for each extra year of service", provided that the amount of
the pension does not exceed 90 per cent, of the average salary.
The rate of the ordinary pension is reduced when an insured person
with at least thirty years' service and 45 years of age claims his retiring
pension before reaching 50 years of age, 5 per cent, of the ordinary
pension being deducted for each year by which the insured person is
less than that age.
{ii) Special pension.—Persons who voluntarily resign from their
position after at least twenty years' service, but without completing
the number of years' service required for an ordinary pension, may
claim, irrespective of their age, a special pension which amounts to
2 per cent, of the ordinary pension for each year of service.
3. Benefits in case of death.—{i) Survivors' pensions.—Survivors'
pensions are granted to the widow or incapacitated widower, and to
orphans, or, in default of such persons, to the father and mother, if
living, and if not, to the unmarried sisters of the deceased, provided
that such persons were dependent on the deceased at the time of his
death.
The joint pension payable to the whole body of survivors is equal
to 50 per cent, of the pension which the deceased person was receiving

INTERNATIONAL SUBVEY O F SOCIAL SERVICES,

1933

or could have claimed a t the time of death. One-half of this pension,
or 25 per cent, of the ordinary pension, is paid t o the widow (or widower
if unable to work) if the pension is paid concurrently with those due
to the children or the parents of t h e deceased, the other half being
divided equally among the latter. I n the absence of children or
parents, the entire pension is paid t o the widow.
(ii) Lump-sum payment.—Dependants of a n insured person who
has completed ten years' service counting for purposes of pension insurance, are entitled to a lump-sum payment equal to one month's instalm e n t of t h e average salary received by t h e deceased person for each
year of service covered by insurance.
4. Benefit in case of unemployment.—In case of loss of employment,
the insured person is entitled to : (i) A refund of his annual contributions plus 5 per cent, interest, if he has less t h a n fifteen years'
service ; (ii) a pension equal t o 2 per cent, of the ordinary pension for
each year's service, if he has more than fifteen years' service.
No statistics are available for 1933.

m.—Subsidised Benefit Schemes for the Staffs of Public
Undertakings
A.—INVALIDITY,
OLD-AGE AND WIDOWS' AND ORPHANS' INSURANCE FOR
WAGE-EARNING AND SALARIED EMPLOYEES OF PUBLIO UTILITY
UNDERTAKINGS

1.—Legal Basis.
The insurance system is regulated by Act No. 11110 of 11 February
1921 and t h e Administrative Regulations of 3 September 1928.
2.—Scope.
Insurance is compulsory for the permanent staff employed in private
establishments responsible for tramway, telephone and telegraph,
gas, electricity and wireless telegraphy services set up with Government
permission and for wage-earning and salaried employees of the water
and public health services. Insurance extends likewise to the perm a n e n t staff employed by the insurance institution in charge of this
branch of insurance. Wage-earning and salaried employees are
deemed to be permanently employed when they complete six m o n t h s '
uninterrupted service in the same undertaking.
3.—Administration.
The insurance system is managed by the National Pension F u n d
for wage-earning and salaried employees of private undertakings
miming public services. The board of management comprises a
chairman appointed by the Head of the Executive Authority, a
representative elected by the meeting of staff delegates and one representative elected by the undertakings, each undertaking having a
number of votes in proportion to its Wages bill for t h e year preceding
t h e election.

ABGENTINA

4.—Financial Resources.
The income of the insurance system is derived from :
(a) The insured person's contribution consisting of :
(1) A contribution of 5 per cent, on wages up to 1,000 pesos a
month; for monthly wages over 1,000 pesos a month, only
that amount is taken into consideration.
(2) The following deductions : (i) one month's wages payable in
thirty-six monthly instalments by every permanent wageearning and salaried employee ; (it) one month's wages payable
in thirty-six monthly instalments by every wage-earning and
salaried employee promoted to permanent rank ; (iii) the first
month's increment of the difference in remuneration when the
insured person occupies a more remunerative post or receives
an increase in remuneration.
(3) A special contribution payable by wage-earning and salaried
employees who were employed prior to the promulgation of
the Act (1921) and who consequently have paid no contributions to the Fund for such period of service. This contribution
amounts to 3 per cent, of their remuneration, payable from
the third year after the promulgation of the Act, or 10 per
cent, of their retiring pension, payable until the Fund has
received an amount equal to 5 per cent, of the remuneration
corresponding to the years required to complete the qualifying
period.
(6) The employer's contribution, equal to 8 per cent, of the total
wages bill, payable on all wages not exceeding 1,000 pesos a month;
on wages exceeding 1,000 pesos a month, the contribution is payable
only on that amount.
(c) The interest on the capital of insurance funds set up in certain
undertakings running public services prior to the promulgation of the
Act of 11 February 1921 and subsequently amalgamated in the
National Fund.
(d) Fines imposed on undertakings.
(e) Interest on investments.
(/) A State subsidy.
5.—Benefits.
(a) Definition of the risks covered.
1. Invalidity.—Wage-earning and salaried employees who are
found to be physically or mentally incapable of continuing to carry
out their duties are deemed to be incapacitated ; the right to benefits
is acquired only after the completion of a qualifying period of one year
in the case of salaried employees and two years in the case of workers.
Wage-earning and salaried employees are deemed to be
incapacitated, even without the completion of a qualifying period,
when they become incapable of work as the result of their work or a
cause entirely due to the performance of their work.

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1933

2. Old age.—An ordinary old-age pension is granted to insured
workers of at least 50 years of age after thirty years' service ; a pension
is also granted to persons who have completed thirty years' service
before reaching 50 years of age, but in this case the ordinary pension is
reduced by 5 per cent, for each year by which the insured person is
less than that age. Persons who reach 50 years of age and have more
than ten but less than thirty years' service may claim a voluntary
retirement pension. Persons who reach 50 years of age and have less
than ten years' service are entitled to a lump-sum payment.
3. Death.—The insurance scheme makes provision for survivors'
pensions and lump-sum payments to dependants of deceased insured
persons.
4. Loss of employment.—Compensation is also paid to wage-earning
and salaried employees who are dismissed for reasons of economy or
because their services are no longer indispensable, and to persons who
are obliged to leave their employment on marriage. No compensation
for unemployment is made in the case of insured persons dismissed
on account of a disciplinary offence, the abuse of alcoholic liquors or
a conviction in a criminal court.
(b) Cash benefits.
The Act stipulates as a general rule that no benefit is to exceed
1,000 pesos a month even if the beneficiary was in receipt of a higher
salary.
1. Invalidity benefits.—The invalidity pension amounts to 5 per
cent, of the ordinary old-age pension for each year of service, but may
not exceed such pension.
Invalidity pensions are of a provisional nature during a period of
five years, after which they are granted permanently.
2. Old-age benefits.—(1) Ordinary pension.—The old-age pension
is established on the basis of the average wage received during the
last five years of service, in accordance with the following scale :
(i) up to a monthly wage of 100 pesos, 95 per cent. ; (it) for monthly
wages between 101 and 300 pesos, 95 pesos, plus 80 per cent, of the
difference between 101 pesos and the average wage above that figure ;
(iii) for monthly wages between 301 and 1,000 pesos, 225 pesos, plus
70 per cent, of the difference between 301 pesos and the average wage
above that figure.
(2) Voluntary retirement.—The voluntary retirement pension
amounts to 2 per cent, of the ordinary pension for every year of
service.
(3) Lump-sum payment.—The lump-sum payment is equal to the
amount which the insured person with less than ten years' service has
paid into the Fund, plus 5 per cent, interest.
3. Benefits in case of death.—(i) Survivors' pensions.—Survivors'
pensions are granted to the widow, incapacitated widower, the children,
and to brothers or unmarried sisters and to parents who were wholly
dependent on the deceased person.

ARGENTINA

The joint pension granted to the whole body of survivors is equal
to 50 per cent, of the pension which the deceased person was receiving
or could have claimed at the time of death. One-half of the pension
is paid to the widow ; if there are surviving children, brothers and
parents, the other half is distributed equally among such persons.
(ii) Lump-sum payment.—If the insured person dies before
acquiring the right to a pension, his survivors may claim compensation
equal to 5 per cent, of his remuneration on which contributions have
been paid.
4. Compensation for loss of employment.—In case of loss of employment, the insured person is entitled to :
(i) 5 per cent, of the amounts received as salary, plus 5 per cent.
interest ;
(ii) One month's salary for every year's service, if he has more than
10 but less than 20 years' service ;
(iii) A pension equal to 3 per cent, of the ordinary old-age pension
for each year's service, if he has more than 20 years' service.
No statistics are available for 1933.
B.—INVALIDITY, OLD-AGE AND WIDOWS' AND ORPHANS' INSURANCE FOB
RAILWAY WORKERS

1.—Legal Basis.
The insurance system is regulated by Acts No. 9653 of 30 June
1919, No. 10650 of 30 April 1919, No. 11074 of 9 October 1920, No.
11308 of 7 December 1923, and the Administrative Regulations of
7 February 1924.
2.—Scope.
Insurance is compulsory for all wage-earning and salaried employees
permanently employed in railway undertakings under State control,
including the State railways, maritime undertakings and establishments
of the Argentine Republic with their own railways, and cable railways.
Insurance is also compulsory for the staff of the central fruit market,
the staff of the insurance institution set up to regulate the insurance
system, doctors and medical and administrative staff employed by
mutual-aid institutions set up by the staff of various transport undertakings, the staff employed by travel agencies, and, finally, for the
staff of railway restaurants and buffets. Wage-earning and salaried
employees who have been employed for more than six months in the
same establishment are deemed, to be permanent.
3.—Administration.
The insurance system is managed by the National Pension Fund for
wage-earning and salaried employees of the railway companies. Its
board of management comprises a chairman appointed by the Head of
the Executive Authority, four representatives elected by the insured
persons and four representatives elected by the undertakings, each
undertaking having a number of votes in proportion to its wages bill
for the year preceding the election.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The income of the insurance system is derived from :
(a) The insured person's contribution, comprising :
(1)5 per cent, of wages up to 1,000 pesos a month ; for monthly
wages of over 1,000 pesos a month, only that amount is taken
into consideration.
(2) The following deductions : (i) One month's wages payable in
24 monthly instalments by all persons joining the staffs of
railway companies; (ii) the first month's increment of the
difference in remuneration when an insured person occupies
a more remunerative post or receives an increase in
remuneration.
(è) The employer's contribution, equal to 8 per cent, of the total
wages bill, payable on all wages exceeding 1,000 pesos a month; on
remuneration exceeding 1,000 pesos a month, the contribution is based
on that amount.
(c) The interest on the capital of insurance funds set up prior to
the promulgation of the Act of 30 April 1919.
(d) Fines imposed on the undertakings, interest on investments,
sums received as legacies or donations.
5.—Benefits.
(a) Definition of the risks covered.
1. Invalidity.—Wage-earning and salaried employees who are
physically or mentally incapable of continuing to carry out their duties
or any other duties compatible with their ordinary aptitudes are
deemed to be incapable ; the right to benefit is acquired only after
five years' service.
Wage-earning and salaried employees are deemed to be incapacitated,
even without the completion of a qualifying period, when they become
incapable of work as the result of their work or a cause entirely due to
the performance of their work.
2. Old age.—An ordinary old-age pension is granted to insured
persons of at least 50 years of age after 30 years' service ; the pension
is also granted to persons who have completed 30 years' service before
reaching 50 years of age, but in such cases the pension undergoes a
reduction of 25 per cent.
Persons who reach 50 years of age and who have less than 30 but
more than ten years' service may claim a voluntary retirement pension.
Persons who reach 50 years of age and have less than ten years' service
are entitled to a lump-sum payment.
3. Death.—The insurance system makes provision for survivors'
pensions and for lump-sum payments to the dependants of the deceased
insured person.
4. Loss of employment.—Compensation for loss of employment is
made to wage-earning and salaried employees who are dismissed for
reasons of economy or because their services are no longer necessary.
(b) Cash benefits.
1. Invalidity benefits.—The invalidity pension is calculated on the
basis of the average remuneration received during the last ten years of

AEGENTINA

service, and in accordance with the scale for ordinary old-age pensions,
and amounts to 10 per cent, of the ordinary old-age pension for each
year of service but may not exceed the old-age pension.
Invalidity pensions are granted on a temporary basis during the
first five years, after which they are made permanent.
2. Old-age benefits.—(a) Ordinary old-age pension.—The ordinary
old-age pension is established on the basis of remuneration received
during the last five years of service, in accordance with the following
scale :
(i) Up to an average of 120 pesos, the amount of the average
remuneration ;
(ii) Average remuneration between 120 and 300 pesos : 120 pesos
plus 80 per cent, of the difference between 120 pesos and the
average ;
(Hi) Average remuneration between 300 and 1,000 pesos : 264
pesos plus 70 per cent, of the difference between 300 pesos and
the average.
(6) Voluntary retirement pension.—The voluntary retirement
pension amounts to 2 per cent, of the ordinary old-age pension for
each year of service.
(c) Lump-sum payment.—The lump-sum payment is equal to the
sums which the insured person has paid into the Fund, plus 5 per cent.
interest.
3. Benefits in case of death.—(i) Survivors' pensions.—-Survivors'
pensions are granted to the widow, the incapacitated widower, the sons,
or, in their absence, to the parents of the deceased person. In the
absence of parents, unmarried sisters, until they reach the age of
22 years or even after 22 years if they are incapable of work, may
claim survivors' pensions.
The joint pension granted to the whole body of survivors is equal
to 50 per cent, of the pension which the insured person was receiving
or could have claimed at the time of his death. One-half of the pension
is paid to the widow and the other half to the sons concurrently with
the father of the deceased person. In the absence of parents and
children, the whole pension is paid to the widow.
(ii) Lump-sum payment.—When the insured person dies before
acquiring the right to a pension, the survivors may claim compensation
in the form of a lump sum equal to 5 per cent, of the remuneration
received by the insured person.
4. Benefit in case of loss of employment.—In case of loss of employment, the insured person is entitled to compensation equal to the
amount he has paid into the Fund, but without interest.
5. Befund of paid-up contributions.—Insured persons who, before
their retirement, are dismissed for a disciplinary offence, the abuse of
alcoholic liquors or a sentence of imprisonment, are entitled to claim
the refund of their paid-up contributions instead of a pension. If they
are responsible for the maintenance of a family, the family may claim
the pension forfeited by the insured person in question.
No statistics are available for 1933.

AUSTRIA
•

SUMMARY
PAGE

F I R S T PABT : Statistics ofPopulation
SECOND P A B T :

Social

...

Insurance

I.—Workmen's

16
Compensation

16
27

II.—Sickness Insurance
III.—Invalidity,
Insurance

Old-Age
...

and

Survivors

IV.—Assistance for the Aged
V.—Unemployment Insurance and Relief
T H I B D PABT :

44
50
53

Public Assistance

I.—Poor Relief

...

II.—Assistance for Victims of Inflation
III.—Winter Relief ...

53
58
62
64

FOTJBTH P A B T : Housing

FIFTH PABT :

Family

Allowances

SIXTH PABT :

Holidays with Pay

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

FIRST

PART

STATISTICS OF POPULATION
CENSUS OF 1934.

OCCUPIED POPULATION CLASSIFIED B Y OCCUPATIONAL GROUPS
AND INDUSTRIAL STATUS

1
Occupational groups

IndeSalaried
pendent
employers employees

Agriculture,
forestry
and fisheries ...
11,484
290,727
47
1,849
Mines and salt-pits ...
Manufacturing indus165,860 102,392
tries and crafts
Transport and commu9,417
43,333
nications
Commerce (incl. hotels,
restaurants, etc.) ... 128,167 103,810
27,814
752
Banking and insurance
Public service, Army,
56,474
Church
92,766
27,870
Liberal professions ...
Domestic and personal
1
3,988
25.920
service
Indeterminate
occu11,475
905
pations
Persons with no stated
4,491
occupation ...
Total occupied population 8 ...
Total population ...

654,156

—

Workers

347,048
20,858

952
77

353,750 1,003,961
10
22,841

717,023

43,525

7,935 1,036,735

92,097

136

343

145,326

89,257
3,443

11,777
109

16,258
26

349,269
32,144

63,424
24,590

2
451

317

119,900
145,994

185,097

3,779

627

219,411

80,992

1,297

94,691

Total

4,491

455,385 1,623,829

—"

Members
of the
family
working in
a family
undertaking

Apprentices

—

62,105

379,288 3,174,763

—

6,760,233

i Including 13,971 domestic servants living out.
2 Not including persons living on unearned income, pensioners, persons supported by others,
school children boarding in schools or other educational establishments.

SECOND

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
A.—INDUSTRIAL

A N D COMMEBCTAL W O R K E R S

1.—Legal Basis.
Act of 28 December 1887, amended on several occasions, and mom
especially by the Acts of 20 July 1894, 30 December 1917 and 16
February 1928 ; promulgated afresh by an Order of 9 March 1929 (Act
of 1929 concerning workmen's compensation for accidents).1
1
These provisions have since been amended b y the Federal Act concerning
industrial insurance, the essential stipulations of which came into force on
1 April 1935.

AUSTRIA

2.—Scope.
The scheme covers all workers and apprentices employed in
factories and metal foundries, mines, quarries, industrial undertakings
producing or using explosives, industrial undertakings using steam
boilers or machinery driven by natural power (wind, water, steam, gas,
electricity, etc.) or animal power, railways, transport undertakings,
warehouses, theatres, fire brigades, timber-felling undertakings,
building undertakings, etc.
Heads of undertakings which are covered by the scheme may also
insure themselves. Heads of undertakings which are not so covered
may voluntarily insure both themselves and all their workers.
3.—Administration.
The scheme is administered by three territorial institutions applying
the principle of mutual aid, and one corporative institution, that of
the Austrian railways, which covers both private and public railway
systems.
Each of the territorial institutions is managed by a governing body.
One-third of the members of this body are elected by the employers
and one-third by the insured persons, while the remainder are persons
with outstanding experience of economic conditions, who are nominated by the State Minister of Social Administration. The governing
body elects a president and a vice-president from among its members.
The accident insurance institution for the railways is managed by
a governing body, consisting of four representatives of the insured persons and four representatives of the employers, and a board, of which
nine members represent the employers and ten the insured persons.
4.—Financial Resources.
The financial resources are derived from contributions paid by the
employers whose undertakings are insured. The undertakings are
divided into classes according to risks, and the rate of the contribution
is fixed with reference to the risk class of the undertaking and the
total amount of wages paid. Individual earnings in excess of 2,400
schillings a year do not enter into this calculation. The classification
of undertakings according to risk and the various rates payable in each
class are based on accident statistics and fixed by Order. Within
any given class, the choice of the rate for each undertaking is left to
the Insurance Institution, which decides with reference to the risk of
accident and the safety measures taken in the undertaking.
5.—Benefits.
(a) Bisks covered.
The object of the insurance scheme is to compensate insured
persons for damage arising from physical injury or death when caused
by an industrial accident.
Certain occupational diseases are treated as industrial accidents,
provided that working capacity is reduced by more than one-third.
x

0 14641

INTERNATIONAL SUBVEN OF SOCIAL SERVICES, 1933

. Under the Order of 3 September 1928, and subject to the conditions
laid down therein, they are defined as those contracted by a worker in
the production, working up, or use of the following substances or
sources of power : lead, arsenic, mercury, and their compounds,
chrome compounds, phosphorus, benzol and its homologues, the
nitro- and amido-derivatives of aromatic hydrocarbons, carbon bisulphide, soot, tar, pitch, paraffin, anthracene, and allied substances,
and various forms of radiant energy (diseases caused by X-rays or
radio-active substances, glass-blower's cataract). The following diseases
are also treated as industrial accidents : (i) infectious diseases contracted by workers employed in scientific institutions (laboratories)
and workplaces attached thereto ; (ii) anthrax contracted in undertakings where hides, skins, animal wool, hair, or bristles are worked
up or sold or in undertakings where animals are kept or slaughtered,
or carcases or waste products of animals are used or destroyed;
(Hi) glanders.
(b) Benefits in kind.
An insured person who has met with an accident is entitled to
medical and pharmaceutical attendance and an adequate provision of
artificial limbs and orthopaedic appliances, adapted to his personal
and occupational requirements.
The sickness fund 'must provide the medical treatment. If this
lasts more than four weeks, the fund is entitled to recover its expenses
from the accident insurance institution within the limits of the injured
person's accident insurance rights. If the injured person still requires
treatment after his right to sickness benefit has expired, the accident
insurance institution must bear the cost of continued treatment.
When treatment has ceased, the injured person may be granted
free maintenance in a curative institution in lieu of the pension due
to him, provided that he consents.
(c) Cash benefits.
1. Pensions for incapacity.—A pension is payable to the injured
person from the beginning of the fifth week after the accident and for
the duration of incapacity or diminished capacity for work.
In the event of total incapacity, the full pension is payable. This
may also be granted temporarily as a convalescence allowance to an
injured person who needs special care in order that he may entirely
recover his working capacity or improve his state of health. The full
pension is equal to two-thirds of annual earnings.
In the event of partial incapacity, the pension is proportionate
(expressed as a percentage of the full pension) to the loss of working
capacity.
An injured person whose incapacity involves the constant attendance of another person, receives a pension equal to one and a half times
the full pension. Railway workers who are injured in a traffic accident,
receive a pension equal to one and a half times the pension to which
they would ordinarily have been entitled..

AUSTRIA

The annual earnings on which the pension is calculated are those
which the injured person derived from his work during the year
preceding the date on which the accident occurred, subject to a minimum of 240 schillings and a maximum of 2,400 schillings. In the case
of railway workers, the pension is calculated on the basis of the actual
annual earnings.
2. Survivors' pensions.—(i) Funeral
one-tenth of the full annual pension.

benefit.—This is fixed at

(ii) Widow's (widower's) pension.—The widow is entitled, until
she dies or remarries, to a pension equal to 20 per cent, of the deceased person's annual earnings. If she remarries, she receives a lump
sum equal to three times the amount of her annual pension. A
widower, who is unable to support himself, is entitled to a pension
calculated on the same basis.
(iii) Orphans' pensions.—A pension is payable to the children of
the deceased up to the end of their fifteenth year and, if they are
unable to support themselves, for the duration of such incapacity.
The pension is equal to 15 per cent, of the deceased person's annual
earnings, or 20 per cent, in the case of legitimate or legitimised children
who have lost both parents.
(iv) Other survivors' pensions.—Relatives in the ascending and
descending line and the brothers and sisters of the deceased person
who were mainly dependent on him are entitled to a pension equal
to 20 per cent, of his annual earnings. I t is paid for life in the case of
parents and grandparents, or until they cease to need it, and up to the
end of their fifteenth year in the case of grandchildren, brothers and
sisters, or, if they are unable to support themselves, for the duration
of such incapacity. The percentage mentioned above may not be
exceeded even if there are several claimants. Should this be the case,
the order or precedence is as follows : parents, grandparents, grandchildren, brothers and sisters.
The total survivors' pensions may not exceed two-thirds of the
deceased person's annual earnings. Parents, grandparents, grandchildren, brothers and sisters receive pensions only to the extent that
the widow's (widower's) and orphans' pensions fall short of this maximum. If the widow's (widower's) and orphans' pensions exceed the
maximum, they are proportionately reduced.
6.—Statistics.
I.—The Three Territorial

Institutions

Number of insured persons in 1933
Number of insured undertakings...
Number of beneficiaries a t 31 December 1933 :
Accident pensions
Survivors'
,,

394,515
76,915
31,092
6,447
B2

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3
INCOME AND E X P E N D I T U R E FOR

(in thousands of schillings)

1933
E X P E N D ITURE

INCOME

Employers' contributions
Income from investments
Other income ...

... 13,532
... 2,102
497

Cash benefits ...
Benefits in kind
Voluntary benefits
Cost of administration
Other expenses

Total
Reserves a t
beginning
financial year

... 16,131
of
... 47,855

Total
Reserves a t end of
year ...

Total

63,986

18,264
606
23
3,459
2,635
24,987
financial
38,999

Total

BALANCE S H E E T AT 31 D E C E M B E R

63,986

1933

(in thousands of schillings)
ASSETS

Cash
Liquid assets ...
Securities
Real property ...
Mortgages
Other loans
Contributions due
Sundry debtors
Furniture and fittings...

LIABILITIES

...
...
...
...
...
...

Total

120
18,088
5,387
4,229
1,798
1,500
10,488
702
612

Sundry creditors
...
••• 3,925
Reserves a t end of financial
year
38,999

42,924

Total

II.—The Austrian Railways Accident Insurance
Number of insured persons in 1933
...
...
Number of insured undertakings ...
...
...
Number of beneficiaries a t 31 December 1933 :
Accident pensions
...
...
...
...
Survivors'
„
...
...
...
...
INCOME AND E X P E N D I T U R E FOR

...
...

Institution
... 65,660
...
51

...
...

6,051
2,367

1933

(in thousands of schillings)
INCOME

Employers' contributions
Income from investments
Other income ...

Total
Reserves a t beginning
financial year
...

EXPENDITURE

of
...

8,053
182
111

Cash benefits ...
Benefits in kind
Voluntary benefits
Cost of administration
Miscellaneous ...

7,687
28
14
568
426

8,346

Total
Reserves a t end of financial
year

8,723

2,541
10,887

Total

BALANCE SHEET AT 31 D E C E M B E R

2,164
10,887

1933

(in thousands of schillings)
ASSETS

Cash
Liquidassets ...
Securities
Real property ...
Contributions due
Sundry debtors
Furniture and fittings...
Total

LIABILITIES

...
...

5
267
713
270
8,062
1,490
38
10,845

Sundry creditors
...
...
Reserves a t end of financial
year ...
...
...
...

Total

8,681
2,164

10,845

AUSTRIA

B.—AGRICULTURAL

AND FORESTRY WORKERS

1.—Legal Basis.
Acts of 18 J u l y 1928 and 18 July 1929.
2.—Scope.
The scheme covers all persons working under a contract of employment or apprenticeship in agricultural or forestry undertakings,
hunting, fishing, the extraction of resin, subsidiary agricultural or
forestry undertakings, a n d agricultural co-operative purchasing or
producing societies, or as domestic servants in the household of an
employer engaged in agriculture or forestry. The scope of the Act
does not include persons covered by t h e salaried employees' insurance
scheme.
The scheme is not applicable to the following : the employer's
wife ; persons who, even while employed, derive their livelihood mainly
from some independent activity; persons whose employment in an
insurable occupation is only accessory to employment in some other
industry ; persons in receipt of public assistance or who, owing t o old
age or some infirmity, have only a limited capacity for work and
receive very small or no wages in cash.
Further, compulsory insurance does not apply to the employer's
children, sons-in-law and daughters-in-law, parents, and grandparents,
if he undertakes to p a y for their maintenance a n d treatment in the
event of an accident.
3.—Administration.
There are five territorial agricultural workers' insurance institutions.
E a c h institution is administered by a general meeting, a governing
body, and a pension committee. The general meeting includes the
chairman of the institution, who is appointed by the President of the
State, a n d representatives of t h e insured persons and employers in
equal numbers. These representatives are appointed by the members
of the governing bodies and supervisory committees of agricultural
sickness insurance funds.
The governing body consists of the chairman, ten representatives
of the employers a n d ten representatives of the insured persons
(elected by the general meeting), and four representatives of public
departments, appointed by the State Government.
The pension committees consist of one representative of the
employers, one representative of the insured persons (elected from
among the members of the governing body) and one official of the institution. When the pension committee has to ascertain or assess
capacity for work, or decide on a course of treatment, it is assisted by
a medical practitioner acting in an advisory capacity. The pension
committee decides all claims submitted under t h e accident insurance
scheme. I t s decisions must be unanimous; otherwise the case goes
before the governing body for decision.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The financial resources of the scheme are derived from contributions,
two-thirds of which are payable by the employers and one-third by
the insured person. Contributions are fixed with reference to nine
wage classes, the lowest of which comprises wages of 4-80 schillings
a week or less, and the highest 36 schillings a week or more. The
contribution is calculated on the lower wage limit in each class (3-60
schillings a week in the lowest class). The weekly contribution amounts
to 5 per cent, of the basic wage. The heads of forestry undertakings
pay a supplementary contribution for special risks. This is fixed
at four-twentieths of the basic wage of each forestry worker.
5.—Benefits.
(a) Risks covered.
The object of the scheme is to compensate for damage arising from
the loss or diminution of working capacity or from death when caused
by an industrial accident. All accidents occurring in the course of
employment by way of trade or in connection therewith are deemed to
be " industrial accidents ".
Certain diseases due to occupational activity are treated as industrial accidents. Under the Order of 6 February 1929, and subject to
the conditions laid down therein, these diseases are anthrax, glanders,
poisoning by artificial fertilisers with considerable dust content,
milkers' cramp, and diseases contracted in the production, working
up or use of the following substances or sources of power : lead, arsenic,
mercury, and their compounds, chrome compounds, phosphorus,
benzol and its homologues, nitro- and amido-derivatives of aromatic
hydrocarbons, carbon bisulphide, soot, tar, pitch, paraffin, anthracene,
and allied substances and various forms of radiant energy (X-rays and
radio-active substances). The scheme also covers zymotic diseases
contracted by workers in scientific institutions (laboratories) and the
workplaces attached thereto.
(b) Benefits in kind.
A person injured by an accident is entitled to medical and pharmaceutical attendance and an adequate provision of artificial limbs and
orthopaedic appliances.
Medical attendance is provided by the injured person's agricultural
sickness fund until his right to sickness benefit has expired. From the
beginning of the fifth week after the accident, the agricultural insurance
institution has to refund the expenses of the sickness fund up to an
amount equal to one and a half times the legal sickness benefit. When
the claim to sickness benefit has expired, the agricultural insurance
institution has to provide the medical attendance.
In lieu of medical attendance and pension, the injured person may
be maintained free of charge in a curative institution, in which case
his dependants are entitled to benefit equal to half the full pension.
(c) Cash benefits.
1. Pensions for incapacity.—A person injured by an accident whose
working capacity is reduced by more than 15 per cent, is entitled, from
the first day following the end of treatment, but in any case from the

AUSTRIA

beginning of the second year after the accident, to a pension payable
for the duration of his incapacity. The full pension, which is payable
as long as total incapacity lasts, is equal to twenty times the average
basic wage used for calculating the contributions paid in respect of the
injured person during the 52 weeks preceding the accident.
In the event of partial incapacity of at least one-third (one-fifth in
the case of regular forestry or sawmill workers) the injured person is
entitled, as long as such incapacity lasts, to a fraction of the full
pension proportionate to his loss of working capacity. If working
capacity has been reduced by less than one-third (or one-fifth), a
lump sum, not exceeding fifty times the amount of the monthly pension,
is substituted for the pension.
Persons whose incapacity involves the constant attendance of
another person are entitled to a pension equal to one and a half times
the full pension.
If the accident pension amounts to two-thirds of the full pension
or more, the injured person is also entitled to a bonus in respect of each
child dependent on him, up to the age of 14 years. The bonus is equal
to one-tenth of the pension for the first child and one-twentieth for
each additional child. If, owing to infirmity or to schooling or
vocational training, a child is unable to earn his living, the bonus
is payable up to the age of 16.
2. Survivors' pensions.—(i) Funeral benefit.—Funeral benefit is
equal to one month's full pension. It may be increased to two and a
half times the amount of the monthly pension, but not less than 60
schillings, when no funeral benefit is payable under the sickness
insurance scheme.
(ii) Widow's (ividower's) pension.—A pension equal to one-third of
the full pension is payable to the widow until she dies or remarries.
If she remarries, she receives a lump sum equal to 36 times the amount
of her monthly pension.
The widower of an insured person who supported her husband entirely or mainly out of her earnings receives a pension equal to onethird of the full pension payable to the deceased woman, but only for
as long as he is unable to earn his living and has no means of his own.
(iii) Orphans' pensions.—The deceased person's children, if they
have no other means, are entitled to pension up to the age of 16. The
pension amounts to one-sixth of the deceased person's full pension, or
one-quarter in the case of children who have lost both parents. If,
owing to some infirmity, the child is unable to earn his living, the
pension is payable after the age of 16 and as long as the infirmity lasts.
(iv) Other survivors' pensions.—If the deceased leaves no widow
(widower) or orphans entitled to pension, his parents, grandparents,
and brothers and sisters who were mainly dependent on him are
entitled to pensions, the aggregate amount of which may not exceed
one-third of his full pension. These pensions are payable to parents
and grandparents for life or until they ceased to be indigent, and to
brothers and sisters who have no other means, up to the age of 16.

INTERNATIONAL SURVEY OB' SOCIAL SERVICES, 1933

6.—Statistics.
Number of insured persons in 1933 1 (annual average) ...
Number of persons in receipt of pensions a t end of 1933 :
Accident pensions
Widows'
„
Orphans'
„
Other survivors' pensions

...700,000
...

Total

4,365
356
447
57
5,225

INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of schillings)
INCOME

EXPENDITURE

Insured persons' contributions
Employers' contributions
Income from investments
Miscellaneous ...
Excess of expenditure
Total

487
2,923
244
299
107
4,060

Benefits in kind
Cash benefits ...
Cost of administration
Miscellaneous ...
Total

627
2,418
700
315

4,060

The Insurance Institutions are not subsidised by the public
authorities.
Assets at 31 December 1933
(in thousands of schillings)
Reserves

6,200
C.—SALARIED

EMPLOYEES

1.—Legal Basis.
Act of 29 December 1926, amended by the Acts of 2 August 1927
and 12 July 1928 ; promulgated afresh by an Order of 22 August 1928
(Act of 1928 concerning salaried employees' insurance)2 Order of 3
September 1928.
2.—Scope.
The scheme applies to all persons performing, for one or more
employers, certain services enumerated in the Act, for instance : the
management of undertakings or departments of undertakings ; supervision and inspection involving technical and economic responsibility
for the work of other persons, as in the case of senior supervisory staff
(workshop managers, supervisors, foremen, checkers, etc.) ; correspondence, book-keeping, accountancy, and cashier's work ; filing ;
other clerical work; subsidiary commercial services, buying, selling,
1
The number of insured persons cannot be given exactly since, owing to the
way in which the contributions of agricultural undertakings are collected, the
Agricultural Accident Insurance Institution for Vienna, Lower Austria and
Burgenland does not keep statistics of insured persons. The contributions due
from agricultural undertakings are paid in a lump sum in the form of an additional
land t a x . According to an estimate based on the 1930 census of undertakings,
about 420,000 engaged in agriculture or forestry on their own account and
members of their families engaged in the undertaking are insured with this
institution.
s
These legislative provisions have since been amended by the Federal Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

AUSTRIA

and storage ; exercise of fine arts ; teaching ; employment connected
with educational or social work ; and, generally speaking, any work
involving an appreciably better education than that given in higher
elementary schools. The scheme also covers State employees working
under contract in an administrative service or a technical service
treated as such, and persons serving articles of apprenticeship in an
employment in which insurance is compulsory.
Insurance is not compulsory for married women keeping house for
their family, provided they do not work more than 50 hours per month
in any occupation entailing liability to insurance and do not earn in
the aggregate more than 80 schillings a month ; for persons who work
not more than twelve hours a week in an occupation subsidiary to an
educational or welfare institution ; for certain pensioners, State employees and ministers of religion ; for the children, parents, and wife
(husband) of the employer, and persons who cannot be classified as
private or public employees and who are only occasionally employed,
for a predetermined period of not more than one month, in work in
which insurance is compulsory.
3.—Administration.
The scheme is administered by the Principal Institution for Salaried
Employees' Insurance and by three special institutions for agriculture
and forestry, the Press, and dispensing chemists. These institutions
also administer the pension insurance scheme (see below, p. 35, III,
A, 3.)
4.—Financial Resources.
The financial resources of the accident insurance scheme are
derived from contributions the payment of which is shared equally
between the insured persons and their employers. These contributions
are included in those paid under the pension insurance scheme (see
below, p. 36, III, A, 4).
5.—Benefits.
(a) Risks covered.
The object of the scheme is to compensate for damage arising
from the loss or diminution of working capacity or from death caused
by an accident occurring in the course of employment or in connection
therewith.
Certain diseases caused by the employment are treated as industrial
accidents. The list of these diseases is contained in the Order of 3
September 1928 (see above, p. 22, the list of occupational diseases
covered by the insurance scheme for workers in agriculture and
forestry, I, B, 5, a).
(b) Benefits in kind.
A person injured by an accident is entitled to medical and pharmaceutical attendance in accordance with the provisions governing
sickness insurance. When the right to medical attendance under the

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

sickness insurance scheme has expired, the expenses of such treatment
are borne by the accident and pension insurance institution. An
injured person whose right to sickness benefit has expired is entitled
to a pension while he is in receipt of medical attendance.
In lieu of medical attendance and pension, he may be maintained
free of charge in a curative institution, in which case his dependants
are entitled to an allowance equal to one-third of the full pension.
(c) Cash benefit.
1. Accident pensions.—From the first day following the end of
curative treatment and as long as his working capacity is reduced
by more than one-quarter, the injured person is entitled to a pension.
The full pension is payable as long as total incapacity lasts and during
the period of convalescence and re-training, and is fixed at 70 pension
units. The pension unit is equal to 1 per cent, of the basis of assessment, i.e. the average salary in respect of one calendar month for
the twelve months preceding the accident, but not less than 80
schillings or more than 400 schilUngs. For the purposes of accident
insurance the basis of assessment for insured persons who have paid
contributions for less than 120 months is the salary usually earned in
the same locality after 120 contribution months by employees in the
same occupational category and with similar training, provided that
this method of calculation is more favourable to the insured person
than the usual method.
In the event of partial incapacity of more than one-fourth, the
injured person receives a fraction of the full pension proportionate to
his loss of working capacity. The full pension is not less than 70
schillings. Insured persons who require constant attendance receive
a pension equal to one and a half times the full pension.
A person whose pension is equal to not less than 50 units is
entitled to a bonus in respect of each child under 18 years of age,
equal to one-tenth of his pension for one child and one-twentieth for
each additional child.
2. Survivors' pensions.—(i) Widow's (widower's) pension.—A pension
equal to one-third of the deceased person's full pension is payable to
the widow until she dies or remarries. If she remarries, she receives
a lump sum equal to three times the yearly amount of her pension.
The widower of an insured woman who supported her husband
entirely or mainly out of her earnings is entitled to a pension if at the
date of his wife's death he is incapable of earning his living or is in
necessitous circumstances. The pension is payably only as long as
both these conditions are fufilled.
(ii) Orphans' pensions.—Each child under 18 years of age is entitled
to a pension amounting to one-sixth and, in the case of children who
have lost both parents, to one-fourth, of the deceased person's full
pension.
(Hi) Other survivors' pensions.—The parents (grandparents) and
brothers and sisters of the deceased person who were mainly dependent
on him are entitled to pensions which may not in the aggregate exceed
one-third of his full pension. Such pensions are payable to parents
(grandparents) until their death or so long as they are in necessitous

AUSTRIA

circumstances, and to brothers and sisters who have no means of
subsistence until they reach the age of 16. These relatives can claim
a pension only if the deceased person has left no surviving widow
(widower) or orphans entitled to pension.
3. Commtitation of pensions.—The insurance institution and the
pensioner may come to an agreement under which the latter waives
his right to the pension or part thereof in return for a lump sum equal
to the capital value of such pension or part thereof. A guarantee.
must be given that the lump sum will be used judiciously.
6.—Statistics.
Number of insured persons a t end of 1933
Number of pensioners a t end of 1933
...

...
...

... 207,193
...
436

Income and Expenditure.
In the case of salaried employees' insurance, a single set of accounts
is kept for accident and for pension insurance. See p. 39, the figures
under III, A : Salaried employees' pension insurance scheme.

n.—Sickness Insurance
A.-—INDUSTRIAL AND COMMERCIAL WORKERS

1.—Legal Basis.
Act of 30 March 1888, amended at various dates and promulgated
afresh by the Order of 22 March 1929 (Act of 1929 concerning workers'
sickness insurance).
Act of 28 December 1926 concerning the organisation of sickness
funds, amended at various dates and promulgated afresh by the Order
of 22 March 19291.
2.—Scope.
The scheme covers all persons employed by way of trade under a
contract of employment, service or apprenticeship who are not
covered by the special schemes for agricultural workers, State employees, and salaried employees. It also covers persons employed by
way of trade as homeworkers, sub-contractors and middlemen, and
domestic servants.
Insurance is not compulsory for the following : the employer's
wife (husband) and relatives, charwomen and serving girls, laundresses,
dressmakers, etc. Subsidiary or temporary work lasting only a very
short time or involving very small remuneration is also exempt,
provided that a special Order is issued in each case.
3.—Administration.
The scheme is administered by territorial sickness insurance funds,
works funds, guild funds, association funds, and miners' benefit
societies. The last-named were however dissolved by an Order of
21 July 1923 which came into force on 1 August 1933.
1
These legislative provisions have since been amended by a Federal Act
concerning social insurance in industry. The essential provisions of this Act carne
into force on 1 April 1935.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The administrative bodies of the insurance institutions are the
general meeting, the governing body appointed by the general meeting,
and the supervisory committee. They are composed of the representatives of insured persons and their employers. In the general meeting and the governing body, four-fifths of the seats are filled by the
insured persons and one-fifth by the employers; in the supervisory
committee, this proportion is reversed.
4.—Financial Resources.
The financial resources of the scheme are derived from contributions,
two-thirds of which are payable by insured persons and one-third by
employers. Contributions are fixed with reference to ten wage classes,
the lowest of which comprises wages of up to 1-13 schillings a day and
the highest wages of 6 schillings a day and over. In the first eight
classes, the contribution amounts to 50 per cent, of the average daily
wage fixed by law for each class. In the ninth class, the contribution
is equal to 50 per cent., and in the tenth class to 45 per cent, of the
lower wage limit for the class.
5.—Benefits.
The scheme covers the risks of sickness and maternity, and provides
funeral benefit. The rules of the sickness funds may provide that
members of the insured person's family shall also be insured against
sickness.
(a) Benefits in kind.
The insured person is entitled to medical benefit from the beginning
of the sickness and as long as it lasts, but for not more than 26 weeks.
If he has been insured uninterruptedly for 30 weeks, he is entitled to
benefit for not more than 52 weeks.
Medical benefit includes the attendance of a medical practitioner,
obstetrical treatment if necessary, attendance by a midwife, and if
necessary, treatment for hydrophobia. It further includes the
necessary medicines and therapeutic requisites, and other appliances
required to restore working capacity (artificial limbs, artificial teeth,
spectacles, etc.).
Instead of medical benefit and sickness allowance, the insured
person may be granted free maintenance and treatment in a hospital,
maternity home, etc.
The rules of sickness funds may make provision for other benefits,
such as home-nursing by a trained nurse, continued hospital treatment,
and the extension of the maximum benefit period to 78 weeks.
Further, the rules may entitle an insured person to benefits in respect of sickness among members of his family. Family insurance may
include all the benefits granted by the fund except sickness allowances.
(b) Cash benefits.
(i) Sickness allowance.—This is payable when, owing to sickness,
the insured person's incapacity for work lasts more than three days.
The allowance is paid from the beginning of incapacity (first day of
sickness) and as long as medical benefit is granted. The amount varies
according to wage class between 0-86 schillings and 4-20 schillings a
day.

AUSTRIA

The allowance may be increased by the rules as follows : payment
may be continued up to a maximum of 78 weeks ; the allowance may
be granted, on certain conditions, in respect of illnesses lasting three
days or less ; it may be increased in the first seven classes up to fivefourths and in the last three classes up to seven-sixths of the normal
amount ; it may further be increased by not more than 10 per cent.
in respect of each child under 18 years of age dependent upon the
insured person.
(ii) Maternity benefit.—Women who cease work owing to pregnancy
or confinement receive a cash benefit equal to the statutory sickness
allowance in so far as they are not entitled to the latter. Such benefit
is payable for six weeks before and six weeks after confinement.
(iii) Nursing bonus.—Mothers who nurse their infants receive, during
the twelve weeks following confinement and irrespective of any sickness
or maternity benefit to which they may be entitled, a bonus equal to
half the sickness allowance.
The rules of the fund may extend the period of payment of nursing
bonus to not more than 26 weeks.
(iv) Funeral benefit.—In the event of the insured person's death,
and provided his right to sickness benefit has not been exhausted for
more than six months, his dependants receive an amount equal to 50
times the sickness allowance payable in his wage class, but not less
than 50 schillings.
The rules may increase the funeral benefit up to an amount equal
to 75 times the sickness allowance, but not more than 250 schillings.
6.—Statistics.
Number of insured persons in 1933 (annual average)
Number of persons in receipt of benefit in 1933 :
Cases of sickness
Number of confinements
INCOME AND E X P E N D I T U R E FOB

...

733,857
435,827
6,917

1933

(in thousands of schillings)
INCOME

EXPENDITURE

Insured persons' contributions 51,623
Employers' contributions
... 23,294
Income from investments
...
644
Other income
12,939
Total

... 88,500

Benefits in kind
Cash benefits ...
Cost of administration.
Other expenses
Excess of income
Total

44,824
26,028
12,970
4,253
425
88,500

Insurance institutions are not subsidised by public authorities
Position of Reserve Funds at 31 December 1933
(in thousands of schillings)
Reserves against variations in the value of investments
Pensions fund
...
...
Reserves for election expenses
Allowances fund
Hospital fund
Equipment fund
Reserve fund
Total ...

111
15,151
11
8,904
146
1,114
31,610
... 57,053

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
B.—AGRICULTURAL AND FORESTRY WORKERS

1.—Legal Basis.
Federal Acts of 18 July 1928 and 18 July 1929.
2.—Scope.
All persons covered by the accident insurance scheme for agricultural and forestry workers are also insured against sickness (see above,
P- 21, I, B, 2).
Sickness insurance is not compulsory for persons who are not
liable to insurance against occupational accidents in agriculture and
forestry (see above, p. 21, I, B, 2), or for near relatives of an empk^er
who undertakes to pay for their maintenance and treatment in the
event of sickness.
3.—Administration.
The sickness insurance scheme is administered by agricultural
sickness funds. In principle there is one fund for each province.
The administrative bodies of the fund are the general meeting, the
governing body, and the supervisory committee, which are composed
of representatives elected by the insured persons and their employers.
In the general meeting and governing body, two-fifths of the seats are
filled by the employers' representatives and three-fifths by the insured
persons' representatives ; in the supervisory committee the proportions
are reversed.
4.—Financial Resources.
The financial resources of the scheme are derived from contributions
payable in equal shares by the insured persons and their employers.
In the case of insured persons who are not remunerated in cash and
apprentices, the whole contribution is payable by the employer. The
scale of contribution, which is fixed with reference to nine wage classes,
is the same as in the case of accident insurance (see above, p. 22,
I, B, 4).
Contributions are fixed by the rules of each sickness fund at a
percentage of the basic wage, irrespective of the wage class.
5.—Benefits.
The scheme covers the risks of sickness and maternity and provides
for funeral benefit. The rules of the funds may provide that members
of the insured person's family shall also be insured against, sickness.
(a) Benefits in kind.
The insured person is entitled to medical benefit from the beginning
of the sickness and as long as it lasts, but for not more than 26 weeks.
If, however, he has been insured uninterruptedly for 30 weeks, he is
entitled to benefit for not more than 52 weeks.
Medical benefit includes the attendance of a medical practitioner,
obstetrical treatment if necessary, the attendance of a midwife, and if
necessary, treatment for hydrophobia. It further includes the necessary
medicines and therapeutic requisites and other appliances required to
restore working capacity (artificial limbs, spectacles, etc.).

AUSTRIA

Instead of medical benefit and sickness allowance, the insured
person may be granted, free of charge, maintenance and treatment in
a curative institution.
These benefits may be increased by the rules of the funds ; medical
benefit may be extended to include the stopping of teeth and supply of
artificial teeth, home nursing, or treatment in a maternity home,
rest home, hydropathic institution, or sanatorium, and the grant of
benefit may be continued up to 78 weeks.
The rules may also provide that if a supplementary contribution is
paid, members of the insured person's family shall be entitled to sickness benefits. Family insurance may include all the benefits granted
by the fund except sickness allowances.
(c) Cash benefits.
(i) Sickness allowance.—This is payable when, owing to sickness,
the insured person's incapacity for work lasts more than three days.
The allowance is paid from the fourth day of incapacity and as long as
medical benefit is granted. The amount varies according to wage
class between 0-60 schilling and 4-20 schillings a day. I t is not
payable if the insured person receives board and lodging from his
employer or if he continues to receive not less than 80 per cent, of his
total wages in cash or in kind.
The allowance may be increased by the rules as follows : payment
may be continued up to 78 weeks; the allowance may be granted,
on certain conditions, in respect of the first three days of incapacity ;
it may be increased by 25 per cent, of the normal amount in the event
of prolonged incapacity, and by 10 per cent, in the case of married
persons, 20 per cent, in the case of insured persons with a family of
four, and 30 per cent, in the case of a family of more than four.
(ii) Maternity benefit.—This is payable to insured women who,
during the twelve months preceding confinement, have been engaged
for at least 26 weeks in an employment covered by the scheme.
Insured women living in the employer's household receive, after
confinement, a lump sum fixed by the rules of the fund, which must be
equal to at least 20 times the lower wage limit for the fourth class,
that is, at least 36 schillings. The rules may provide for the payment
of a nursing bonus as long as the mother nurses her infant, but for not
more than 12 weeks following confinement.
Insured women who do not five in their employer's household
receive a maternity allowance equal to the sickness allowance for six
weeks before the estimated date of confinement and six weeks after
the actual date, provided they cease all remunerative employment
during that period. Further, as long as they nurse their infants, but
for not more than twelve weeks after confinement, they receive a
nursing bonus equal to half the sickness allowance.
(iii) Ftmeral benefit.—In the event of the insured person's death,
and provided his right to sickness benefit has not been exhausted for
more than six months, his dependants receive a lump sum equal to
40 times the sickness allowance, but not less than 60 schillings.
The rules may increase .the funeral benefit up to an amount equal
to 50 times the sickness allowance.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

6.—Statistics.
Number of insured persons in 1933 (annual average)
Number of persons in receipt of benefit :
Cases of sickness
Number of confinements
INCOME AND E X P E N D I T U R E FOR

... 275,241
... 88,213
... 5,837

1933

(in thousands of schillings)
INCOME

E X P E N D rrcTRE

Insured persons' contributions
Employers' contributions
...
Income from investments
...
Other income
Total

6,890
6,781
133
1,006
14,810

Benefits in kind
Cash benefits ...
Cost of administration
Other expenses
Surplus ...
Total

8,313
3,358
2,156
648
335
14,810

Insurance institutions are not subsidised by the public authorities.
Position of Funds at 31 December 1934
(in thousands of schillings)
Reserves against variations in the value of investments
Pensions fund
Reserves for election expenses
Allowances fund
Reserve fund
Total

37
32
2
585
6,179
6,835

C.—SALARIED EMPLOYEES

1.—Legal Basis.
Act of 26 December 1926, amended by the Acts of 2 August 1927
and 12 July 1928, promulgated afresh by the Order of 22 August 1928
(Act of 1928 concerning employees' insurance).1
2.—Scope.
The scope of the sickness insurance scheme, and the exceptions
and exemptions allowed under that scheme, are the same as for the
employees' accident insurance scheme (Cf. I, C, 2, p. 24).
3.—Administration.
In principle, there is a salaried employees' sickness insurance fund
in each province. In Vienna there is a special voluntary fund, a fund
for commercial employees, another for banking and savings bank
employees, and a third for industrial employees. There are also
special insurance institutions for agricultural and forestry employees,
press employees, and chemists' employees.
The administrative bodies of the insurance institutions are the
general meeting, the governing body and the supervisory committee.
Further, in each of the three special institutions there is a sickness
insurance committee.
1
These legislative provisions have since been amended by the Federal Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

AUSTEIA

In the general meetings and the governing bodies and in the
supervisory committees of the special institutions, four-fifths of the
seats are filled by representatives of the insured persons and one-fifth
by those of the employers. The proportions are reversed in the
supervisory committees.
4.—Financial Resources.
The financial resources are derived from contributions payable in
equal shares by the insured persons and their employers. If, however,
the insured person's share exceeds 15 per cent, of his cash salary, such
excess is payable by the employer, further, the employer pays the
full amount of the contribution due in respect of insured persons under
17 years of age (3-60 schillings per month). In all other cases the
contribution is calculated with reference to a monthly basic salary,
which may not be less than 80 schillings or more than 400 schillings.
The contribution is equal to 4-50 per cent, of the basic salary.
5.—Benefits.
(a) Bisks covered.
The scheme covers the risks of sickness, invalidity and death, both
in respect of persons directly insured under the scheme and in that of
their family, who are considered as indirectly insured.
(b) Benefits in kind.
Medical attendance may be claimed for an unlimited length of
time unless the patient is receiving hospital treatment, in which case
the right to benefit expires after 78 weeks for any one illness.
Medical attendance includes attendance by a medical practitioner,
obstetrical treatment if necesssary, attendance by a midwife, treatment
against hydrophobia if necessary, and medicines and therapeutic
requisites, including any appliances which a directly insured person
may need in order to maintain or recover his capacity for work. Such
appliances must be simply but suitably made. Further, medical
attendance includes indispensable artificial teeth for directly insured
persons and treatment by a dentist or surgeon-dentist.
In cases where the nature of the illness makes this necessary,
directly insured persons are entitled to hospital treatment free of
charge (including the necessary attendance and maintenance) in lieu
of medical treatment and sickness allowance. An insured woman may
be removed to a maternity home only with her consent.
If indirectly insured persons go to hospital, the insurance institution
is only hable to pay a share of the expense. This share and the length
of time for which it is payable are fixed by the rules of the fund.
Directly insured persons are entitled to further curative treatment.
This includes home nursing, facilities for treatment in convalescent
homes and for residence in the country, in watering places and in
sanatoria, and travelling expenses.
Indirectly insured persons may also receive home nursing provided
they bear at least half the expense. In their case, the fund may
even bear a share of the expenses of a cure, provided such share does
not exceed half the usual expense in respect of directly insured persons.
x

G 14641

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(c) Cash benefits.
(i) Sickness allowance.—Directly insured persons are entitled to
sickness allowance from the fourth day of incapacity for work and as
long as such incapacity lasts, but for not more than 30 weeks in respect
of any one illness, unless the insured person has paid contributions
for twelve months, in which case the allowance is payable for 52
weeks. When the insured person has paid 60 monthly contributions,
the allowance is payable for 78 weeks. Unemployed persons are
entitled to sickness allowance from the first day of incapacity. Employees who, in virtue of legal or contractual stipulations, are entitled
to full pay or compensation from their employer, do not receive sickness
allowance during the first four weeks and are entitled to only half the
allowance for the fifth and sixth weeks.
The daily sickness allowance amounts to two and a half pension
units, with a maximum of 7-50 schillings. A pension unit is one per
cent, of the basis of assessment. I n the case of sickness insurance
this basis is the basic salary for the last month but one preceding the
illness in respect of which benefit is due (as regards the basic salary,
cf. above p. 26, I, C, 5, c. 1).
(ii) Maternity benefit.—Maternity benefit is payable to directly
insured women and to the wives of directly insured persons. It amounts
to one and a half pension units per day, with a maximum of 3-75
schillings. Benefit is payable during the six weeks following confinement or, if the mother nurses her infant, during the 12 weeks following
confinement. The period may be increased to 26 weeks by the rules
of the fund. Further, a lump sum of 120 schillings is granted in respect
of each child.
A directly insured woman is further entitled to maternity benefit
for the six weeks preceding the date at which confinement is expected
to take place, provided she ceases all occupational work during that
period and does not draw full pay. Maternity benefit is not granted
concurrently with sickness allowance or hospital treatment.
(iii) Funeral benefit.-—If the insured person dies, funeral benefit is
payable to the person who bears the funeral expenses. If a member
of the insured person's family dies, the benefit is payable to the insured
person. It is equal to 30, 60 or 90 pension units according as the
deceased person was less than a week old, under six years of age, or
above that age. It may not, however, be less than 60 schillings in the
first two cases or 90 schillings in the third.
6.—Statistics.
Number of insured persons in 1933 :
Insured by sickness insurance funds (annual average)
... 228,688
Pensioners included in above figure ...
...
...
... 34,592
Insured by special insurance institutions (annual average)
16,179
Pensioners included in above figure ...
...
...
...
3,518
Number of persons in receipt of benefit :
Sickness insurance funds :
Cases of sickness ...
...
...
...
... approx. 31,000
Confinements
...
...
...
...
... „
640
Special insurance institutions :
Cases of sickness ...
...
...
...
... approx. 1,510
Confinements
,,, - ,,,
,..
„
10

ATJSTKÏA
INCOME

ADD E X P E N D I T U R E OF SICKNESS INSURANCE F U N D S AND
SPECIAL INSURANCE INSTITUTIONS I N 1933

(in thousands of schillings)
INCOME

EXPENDITURE

Insured persons' contributions 16.199
Employers' contributions
16,199
Income from investments
340
Other incomes ...
2,891
Total

Benefits in k i n d
C a s h benefits
...
C o s t of a d m i n i s t r a t i o n
Other expenses
S u r p l u s ...

35,629

Total

..
..
..
..

23,992
4,926
4,012
1,875
824

35,629

Insurance institutions arc not subsidised by public authorities.
ASSETS AT 31 DECEMBER 1933
(in thousands of schillings)
Sickness
Special
insurance
insurance
funds
institutions
R e s e r v e s for v a r i a t i o n s i n t h e v a l u e of
55
investments
—
...
1,819
Pension fund
—
302
11
R e s e r v e s for e l e c t i o n e x p e n s e s . . .
53
747
Allowances fund...
Medical t r e a t m e n t f u n d . . .
...
1,170
25
...
7,747
535
Reserve fund

Total

11,840

624

Total
55
1,819
313
800
1,195
8,282

12,464

HI.—Invalidity, Old-Age and Survivors' Insurance
A.—SALARIED

EMPLOYEES

1.—Legal Basis.
Act of 29 December 1926, amended by the Acts of 2 August 1927
and 12 July 1928, promulgated afresh by Decree of 22 August 1928
(Act of 1928 concerning salaried employees' insurance).1
2.^-Scope.
The scope of the pension scheme is the same as that of the salaried
employees' accident insurance scheme (see above, p. 24, I, C, 2).
The same exemptions are allowed. Further, insurance is not compulsory for persons under 17 years of age.
3.—Administration.
The scheme is administered by the Principal Institution for
Salaried Employees' Insurance in the case of employees who are
insured against sickness by territorial sickness funds, and by the
three special insurance institutions in the case of agricultural and
forestry employees, press employees, and chemists' employees.
The administrative bodies of the insurance institutions are the
general meeting, the governing body and the pension committee.
Each insurance institution has a president who is elected by a majority
1
These legislative provisions have since been amended by the State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

C 2

INTERNATIONA! SURVEY OF SOCIAL SERVICES, 1933

of the general meeting to hold office during the period for which the
members of the general meeting have been elected. The general
meeting and governing body consist of representatives of employers
and employees in equal numbers. The general meeting of the Principal
Insurance Institution consists of delegates elected in equal numbers
by the representatives of the employers and employees respectively
on the governing bodies of the salaried employees' sickness insurance
funds. Delegates to the general meeting of the special insurance
institutions, on the other hand, are elected by a direct vote. The
members of the governing bodies of the Principal Institution and of
the special institutions are elected by the general meeting. The
pension committees consist of one representative of the insured persons,
one representative of their employers, and one official of the Principal
Institution.
4.—Financial Resources.
The financial resources of the scheme are derived from contributions
paid in equal shares by the insured persons and their employers. If,
however, the insured person's share exceeds 15 per cent, of his cash
salary, the excess is payable by the employer.
These contributions also have to meet the expenses of the accident
insurance scheme.
In the special institutions, the amount of the accident insurance
contribution and pension is fixed by the rules of the institution.
For the year 1927 the contribution payable by members of the
Principal Institution was six per cent, of the basic salary. It was
increased by one half per cent, during each of the four subsequent
years. Since the beginning of the sixth year the contribution has been
fixed by an Order of the State Minister for Social Administration in
such a way that the amount of current contributions may be assumed to
be sufficient to cover all the expenses of the Principal institution, less
interest and plus the amount by which half the expenditure of the
Institution in respect of pensions exceeds interest. By an Order of
18 June 1932, the accident insurance and pension contribution was
fixed at nine per cent, of the basic salary. The basic salary is the
insured person's monthly salary, but it may not be less than 80
schillings or more than 400 schillings. The rules of the special
insurance institutions may raise the maximum limit of the basic salary
to 800 schillings for the purposes of accident and pension insurance.
5.—Benefits.
(a) Definition of risks covered.
(i) Invalidity.—Invalidity pension is payable to a directly insured
person suffering from incapacity for work. Such incapacity is held
to exist when owing to an infirmity or to physical or mental weakness
the insured person is permanently unable to perform the duties of his
last post or to do any other work which might reasonably be assigned
to him in view of his previous employment, practical training and
education.
A directly insured person who does not suffer from permanent
incapacity for work but whose illness entails such incapacity over

AUSTRIA

a period exceeding that in respect of which sickness allowance is
due is also entitled to invalidity pension. In such cases the pension
is payable from the date when the right to sickness allowance ceases
and so long as incapacity lasts.
(ii) Old age.—Directly insured men over 65 years of age and women
over 60 years of age are entitled to an old-age pension provided they
are not engaged in any employment to which the salaried employees'
insurance scheme applies. In the case of men and women who have
paid at least 120 monthly contributions, the pensionable age is 60 and
55 respectively.
(ili) Death.—In the event of the insured person's death or disappearance, his dependants are entitled to a pension or a lump sum.
(iv) Marriage of an insured woman.—Insured women who cease to
be insured within two years of their marriage or who marry within
two years of ceasing to be insured, are entitled to a dowry grant.
(v) Qualifying period.—Generally speaking, an insured person is
not entitled to pension until he has paid valid contributions in respect
of at least 60 months. The qualifying period need not have been completed when the risk in respect of which benefit is payable is due to an
occupational accident.
(b) Benefits in kind.
The Principal Insurance Institution may appropriate, for the
purposes of extended curative treatment, three per mille of the total
basic salaries to which the sickness insurance scheme applies (as
regards such extended treatment, see above, p. 33, II, G, 5. b.).
(c) Cash benefits.
(i) Invalidity and old-age pensions.—The invalidity and old-age
.pension is equal to 35 pension units (basic amount) plus as many
twelfths of a pension unit as the insured person has paid valid monthly
contributions (increment). It may not, however, be less than 40
pension units. A pension unit is equal to one per cent, of the basis
of assessment. For the purposes of the pension scheme the basis of
assessment is the average basic salary on which contributions have
been paid during the 36 months preceding the maturing of the risk
in respect of which benefit is due. If the risk does not mature until
the insured person has reached the age of 45 years after completing the
qualifying period, or has completed the qualifying period after having
reached the age of 45 (assessment date), the average basic salary for
the 60 months preceding the assessment date is taken as the basis of
assessment provided this method of calculation is more favourable to
the insured person.
Disabled persons who require constant attendance receivo a
disablement bonus equal to half the pension. The total pension paid
to such persons must amount to at least 75 pension units.
An insured person is entitled to a children's bonus of at least six
pension units per month in respect of each child under 18 years of age,
but not less than 7.50 schillings or more than 15 schillings.

INTERNATIONAL SURVEY" OF SOCIAL SERVICES, 1933

The pension and disablement bonus may not together exceed 100
pension units.
(ii) Widoiv's (widower's) pension.—The widow of an insured person
is entitled to a pension equal to half that to which the deceased was
or would have been entitled at the time of his death. The widow's
pension is not payable when death occurs within six months of
marriage, or within three years of marriage if the latter took place after
the insured person had reached the age of 50.
If the widow is unable to provide for herself or is over 55 years of
age, the pension may not be less than 30 pension units. If she remarries
she receives a lump sum equal to three years' pension.
A widower is treated on the same footing as a widow if he was
entirely or mainly supported out of his wife's earnings and if when
she dies he is unable to earn his living and is in necessitous circumstances.
The pension is payable only as long as both these conditions are
fulfilled.
(ili) Orphans' pensions.—Children under 18 years of age are entitled
to orphans' pensions. The monthly amount of the orphan's pension
is equal to 12 pension units for a child who has lost one parent, and
24 pension units for a child who has lost both parents, but not less
than 15 and 30 schillings respectively.
(iv) Dowry grant.—This is equal to 5 pension units in respect of
each of the first 120 contribution months and two pension units for
each subsequent month.
(v) Commutation of pension.—The following are entitled to commute
their pension :
The widow, and failing a widow, the orphans, are entitled to an
amount equal to three times the widow's yearly pension when pension
is not payable solely because the qualifying period has not been
completed ;
The widow is entitled to a lump sum equal to one and a half times her
yearly pension when the qualifying period has been completed but
the pension is not payable because death occurred within six months'
of marriage or within three years of a marriage which took place after
the insured person had reached the age of 50 ;
A housekeeper treated on the same footing as a member of the family
is entitled to a lump sum equal to the yearly amount of a widow's
j>ension.
In the absence of any dependants who might claim a pension or a
lump sum in lieu of pension, an allowance equal to one and a half times
the yearly amount of a widow's pension and at least 360 pension units
is payable in the following order :
To children over 18 years of age who are not provided for;
To the deceased person's mother if she was mainly supported by him ;
To the deceased person's father, grandparents and orphan brothers
and sisters if they are unable to support themselves, if they lived in
the insured person's household and were mainly supported by him.

AUSTRIA

6.—Statistics.
Number of insured persons a t end of 1933 :
Principal Insurance Institution for Salaried Employees ... 187,274
Special insurance institutions
...
...
...
... 12,589
Number of persons in receipt of pensions a t end of
Invalidity
& old-age
pensions
21,905
Principal Insurance Institution
2,093
Special insurance institutions
Total
INCOME

AND

...

23,998

1933 :
Survivors'
pensions

Total

15,451
1,614

37,356
3,707

17,065

41,063

E X P E N D I T U R E OF THE PRINCIPAL
INSTITUTIONS FOR 1933

AND

SPECIAL,

(in thousands of schillings)
EXPENDITURE

INCOME

Insured persons'contributions 1 2 32,143
Employers' contributions
. 28,785
Income from investments
. 4,573
Other income ...
.
4,496
Excess of expenditure
. 11,255
Total

Benefits in kind
Cash benefits 3 ...
Cost of administration
Miscellaneous ...

81,252

..
1,198
.. 70,111
..
1,507
8,436
81,252

Total

Insurance institutions are not subsidised by public authorities.
ASSETS AT 31 D E C E M B E R

1933

(in thousands of schillings)
Principal
Institution
Pension fund
...
...
...
...
5,311
Lump-sum indemnity fund
...
...
205
Medical treatment fund...
...
...
14
Reserve fund
...
71,172
77,702

Total

Special
institutions

—
—
—

9,954

Total
5,311
205
14
82,126

9,954

87,656

1
1
3

Including amounts payable in respect of the salaried employees' accident insurance scheme.
The special institutions' share is as follows : insured persons 3,318 ; employers 3,017.
Including 424,000 schillings for the salaried employees' accident insurance scheme and
038,000 schillings for assistance for aged persons.
B.—MUSTERS

1.—Legal Basis.
The Mines Act of 23 May 1854, Acts of 28 July 1889, 16 April 1920
and 3 December 1925, Order of 21 April 1933. From 1 August 1933
onwards the provisions of the above Acts were partly replaced by an
Order of 21 July 1933, amended and completed by an Order of 1
December 1933.1
1
These legislative provisions have since been amended by the State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

INTERNATIONA!/ SURVEY OF SOCIAL SERVICES, 1 9 3 3

Legislative Provisions in Force until 31 July 1933
2.—Scope.
The legislation concerning miners' benefit societies applied to all
workers employed by mining undertakings.
3.—Administration.
The scheme was administered by miners' benefit societies set up
for one or more mining undertakings. Formerly the administrative
bodies of these funds were the general meeting and the governing body.
The general meeting consisted of the members of the society (or in the
case of societies with more than 300 members, of their representatives)
and of the mine owners, the latter having one-third of the votes.
The executive committee consisted of members of the society who were
elected by the general meeting and of the mine owners, who had one-third
of the votes and the chairmanship.
4.—Financial Resources.
Originally the financial resources were derived exclusively from
contributions paid in equal shares by the insured persons and the
mine owners. The amount of the contribution varied according to
the age of the insured person.
The Act of 16 April 1920 obliged the miners' benefit societies to
increase the amount of pensions owing to the depreciation of the
currency. The additional cost was borne by the mining undertakings
and shared among them in proportion to the total wages on which the
calculations of the accident insurance scheme were based, a uniform
rate being fixed every six months by the State Minister of Social
Administration. The Act of 3 December 1925 set up a Mining Relief
Fund, which was administered by the State Minister of Commerce
and Transport. So far as it could, this Fund took over the payments
for which the mining undertakings were Hable under the arrangement
mentioned above. The resources of the Fund were derived from
contributions payable by persons who extracted certain mining products
in the country and transported such products from the place of extraction or imported them from abroad. The contributions, which
were fixed with reference to the weight of the products, amounted to
about half per cent, of the value of these.
5.—Benefits.
(a) Bisks covered.
(i) Incapacity.—A pension was payable to any insured person who,
owing to sickness, old age or an industrial accident, was permanently
unable to earn his living.
(ii) Death.—In the event of the death of an insured person or of a
pensioner, his dependants were entitled to refief.
(b) Benefits in kind.
(i) Invalidity pension.—The amount of the invaHdity pension was
fixed by the rules of the fund either at a uniform figure for all insured
persons or with reference to time spent in insurance. A fixed amount
of 600 schilüngs was to be paid by the Mining Refief Fund as a pension
supplement.

AUSTRIA

(ii) Widow's pensions.—The widow was entitled until she died or
remarried to a pension equal to one-third of the deceased person's
pension and to a fixed bonus of 300 schillings per annum.
(iii) Orphans' pensions.—The legitimate children of the deceased
person were, until they reached the age of 14, entitled to a pension
equal to one-sixth of the deceased person's pension for each child, or
one-third for orphans who had lost both parents. The fixed bonus
for a child who had lost one parent was 168 schillings.
The aggregate amount of the pensions paid to the widow and
orphans could not, however, exceed three-quarters of the deceased
person's pension ; if it exceeded this fraction the several portions
were proportionately reduced. Further, the total amount of the pension
bonuses paid to the widow and orphans could not exceed 600 schillings.
Legislative Provisions in Force since 1 August 1933
2.—Scope.
The scheme applies to all workers employed in mining undertakings
with concessions granted under the provisions applying to reserve
ores (including plant set up by the holder of the concession in virtue
of the latter).
3.—Administration.
The scheme is now administered by the Miners' Insurance Fund.
The Fund is managed by a governing body consisting of three representatives of the mine owners and three of the workers. These members
are proposed by the Association of Chambers of Commerce and by
the Association of Chambers of Workers respectively and appointed
by the Federal JVIinister of Social Administration. The Minister also
appoints three persons who have special knowledge of economic and
technical conditions in the mining industry and of social insurance
legislation; they are Federal officials selected in agreement with the
Federal Minister of Commerce and Transport.
4.—Financial Resources.
The expenditure of the Miners' Insurance Fund, in so far as it is
not covered by the means at the disposal of the Mining Relief Fund
for this purpose, must be covered by contributions fixed as a percentage of the total mining wages on which the calculations of the
workers' accident insurance scheme are based.
The rate of contribution payable in respect of each calendar halfyear is fixed beforehand by the Federal Minister of Social Administration with reference to the expenditure during the preceding half-year,
the resources derived from the Mining Relief Fund, and the amount
required to balance the accounts for that half-year. The contributions are payable by the employer up to an amount equal to 4 per cent.
of the wages on which the calculation is based. If the contribution
required is in excess of 4 per cent., such excess is shared equally by
the employer and the worker.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

In order to safeguard its financial operations, the Miners' Insurance
Fund must build up a reserve fund equal to twice its average monthly
expenditure during the second half of the preceding calendar year.
JFor this purpose 10 per cent, is appropriated from the receipts from
the Mining Relief Fund, until the aforesaid amount is reached. If
the receipts from the Mining Relief Fund are temporarily insufficient
to pay pensions as they fall due, the workers' accident insurance
institutions must advance the necessary amount.
By an Order of 1 August 1933, the rate of contribution for miners'
insurance was fixed for each undertaking insured at 10 per cent, of
the total wages on which calculations are based, 7 per cent, being
payable by the employers and 3 per cent, by the workers.
The resources of the Mining Relief Fund are derived from contributions payable by all persons extracting or producing within the
country and transporting from the place of extraction or production
lignite, hard coal, coke, briquettes, ores, graphite, or waste products
of the oil, lignite or tar industries and by any person importing such
products from abroad.
The contributions are fixed at the following rates :
Per toa.
groschen
Lignite and iron ores
...
...
...
...
...
...
30
Iron pyrites
...
...
...
...
...
...
...
50
Lignite, lignite briquettes, lignite coke, and graphite ...
...
60
Hard coal, hard coal briquettes, and ores (excluding iron ore
and iron pyrites)
...
...
...
...
...
...
92
Hard-coal coke ...
...
...
...
...
...
... 200
Waste products of the petrol, lignite and tar industries
... 500

Of these receipts, the Relief Fund must reimburse 15 groschen in
respect of iron ore extracted in the country and treated in the country
or exported, 75 groschen in respect of hard coal used by public gas
companies for producing gas, 185 groschen in respect of hard-coal coke
used by blast furnaces and foundries, and 200 groschen in respect of
any waste products listed above which are used for industrial purposes.
The Federal Minister of Commerce and Transport is responsible
for administering the Mining Relief Fund.
5.—Benefits.
(a) Bisks covered.
An invalidity pension is payable to any insured person who, owing
to sickness or old age is permanently unable to do the work he had
previously been doing in the mining industry and is also incapable of
doing any other work he might reasonably be expected to do in view of
his previous occupation and training. The pension is, however, payable
only if the claimant has been insured under the pension scheme for an
aggregate period equal to at least three-quarters of the years spent .in
insurance immediately.before the risk matured. The qualifying period
may not be less, than five years.
• In the event of the insured person's death, his widow and orphans
are entitled to pension provided that at the date of his death he was
himself entitled to an invalidity pension or might have claimed such a
pension in the event of invahdity.

AUSTRIA

(b) Benefits in kind.
The cost of the benefits in kind are borne by the sickness insurance
scheme. (See above, p. 28, II, A, 5.b.)
(c) Cash benefits.
(i) Invalidity pension.—The invalidity pension is 600 schillings a
year. Right to pension is suspended if the claimant supports himself
out of the proceeds of his work or any other source of income.
(ii) Widow's pensions.—A pension is payable to the widow of the
insured person until she dies or remarries. The amount of the pension
is 300 schillings. If she remarries, the widow receives a lump sum
equal to three times her yearly pension.
(iii) Orphans' pensions.—An orphan's pension is payable to the
legitimate children of the insured person up to the ago of .14. If the
child is, owing to mental or physical infirmity, unablo to earn his
living, the pension is payable after the age of 14. The pension is 168
schillings for each orphan and 204 schillings for an orphan who has
lost both parents.
The aggregate amount of the pensions payable to survivors may
not exceed 600 schillings. If the total is in excess of this figure, the
several pensions are proportionately reduced.
6.—Statistics.
Number of insured persons in 1933
...
...
... about 12,000
Number of persons in receipt of pensions at 31 December 1933 :
Invalidity pensions
...
...
...
...
...
... 6,966
Widows'
„
3,049
Orphans'
,,
...
...
...
...
...
...
393
Pensions payable to orphans who have lost both parents ...
17
INCOME AND E X P E N D I T U R E FROM 1 JANUARY TO 31 J U L Y

1933

(in thousands of schillings)
EXPENDITURE

INCOME

Employers' contributions
...
Workers' contributions
...
Receipts from Mining Relief
Fund
Excess of expenditure
...
Total

937
401

Pensions

2,686

1,192
156
Total

2,686

INCOME AND E X P E N D I T U H E OF THE M I N I N G INSURANCE F U N D M O M
1 AUGUST TO 31 D E C E M B E R 1933

(in thousands of schillings)
EXPENDITUHE

INCOME

Reserves transferred from the
liquidated miners' benefit
societies
Employers' contributions
Workers' contributions
Receipts from the Mining
. Relief F u n d
Income from investments
Other income. ...
Total

467
700
300

Pensioner's benefits ...
Cost of administration
Other expenses
Reserves at end of financial
year ...

1,588
46
40
954

1,100
11
50
2,628

Total

2,628

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

IV.—Assistance for the Aged
A.—INDUSTRIAD

AND COMMERCIAL W O R K E R S

1.—Legal Basis.
Chapter X of the Act of 1 April 1927 concerning workers' insurance,
Act of 20 December 1928.1
2.—Scope.
The scheme applies to persons employed by way of trade under a
contract of employment, service, or apprenticeship, excluding persons
employed in agriculture or forestry, salaried employees, Federal
officials and railway staff. Special regulations apply to miners and
domestic servants (see below, pp. 45 and 46, IV, B and C).
3.—Administration.
Applications for assistance must be made to the unemployment
offices. Decisions in regard to such applications are taken by the
territorial workers' accident insurance institution on the recommendation of the district industrial commission for the district in which
the applicant is normally resident (see above, p. 17, I, A, 3). Contributions are collected by the sickness funds (see above, p. 27, II,
A, 3). The pensions are paid through the Workers' Accident Insurance
Institution in Vienna.
4.—Financial Resources.
Payments in respect of assistance for the aged are made out of
funds advanced by the State. Such expenditure must be covered to
the extent of one-half by contributions from the employers and
workers, one-sixth by the State and one-third by the province in which
the beneficiary is domiciled. The employers' and workers' contributions, which are fixed at 20 per cent, of the normal sickness insurance
contribution, are not, however, sufficient to cover half the expenditure.
5.—Benefits.
Austrian citizens who have reached the age of 60 are entitled to a
pension, provided they fulfil the conditions laid down for the grant
of emergency relief in accordance with the provisions of the Act concerning workers' unemployment insurance, or are unable to claim
unemployment benefit or emergency relief merely because of incapacity
for work. If a person who is entitled to a pension has not yet reached
the age of 65 and is engaged in an occupation to which the sickness
insurance scheme applies, his right to a relief pension is suspended.
The right to pension expires when the beneficiary dies.
The monthly pension is equal to 20 times the daily unemployment
allowance last paid to the applicant or to which he would have been
entitled had he been able to work, but may not be less than 18 schillings.
1
These legislative provisions have since been amended b y the State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

AUSTRIA

6.—Statistics.
(Industrial and commercial workers, miners and domestic servants.)
Number of pensioners in 1933 (annual average) :
Industrial and commercial workers
...
...
Miners
Domestic servants
...
...
...
...

...

... 79,035
1,992
... 6,353

...

87,380

Total
INCOME AND E X P E N D I T U R E FOB

1933

(in thousands of schillings)
INCOME

E X P E N D iTUBB

8,904
State subsidies...
17,809
Provincial subsidies ...
Employers' and workers' contributions including supplements in respect of arrears
12,892
of contributions
Finea imposed on employers for
failing to observe legislative
provisions
12
Subsidies derived from the
proceeds of the industrial
14,298
emergency t a x

Pensions to industrial workers 49,701
Pensions to miners
...
...
1,127
Pensions to domestic servants
2,244
Cost of administration
...
843

Total

... 53,915

Total

53,915

B.—MINERS

1.—Legal Basis.
Acts of 23 November 1927 and 20 December 1928, amended by an
Order of 4 July 1928, and replaced by an Order of 21 July 1933 concerning miners' insurance which came into force on 1 August 1933.*
2.—Scope.
The scheme applies to all workers employed in mining undertakings
(see above, p. 40, III, B, 2).
3.—Administration.
The scheme is administered by the same institutions as are responsible for the administration of assistance for aged industrial workers
(see above, p. 44, IV, A, 3).
4.—Financial Resources.
These are collected in the same way as those of the scheme for the
assistance of aged industrial workers (see above p. 44, IV, A, 4).
5.—Benefits.
The pension is payable to disabled Austrian citizens who have
reached the age of 65, provided they fulfil the conditions laid down for
the grant of an invalidity pension. The State Minister for Social
Administration may extend the benefit of the scheme to disabled
1
These legislative provisions have since been amended by a State Act
concerning social insurance in industry. The essential provisions of this.Act
came into force on 1 April 1935.

BI3uniHÈ "

fio

-8.DÉC.193%

<->,

'•"te.'SAI i & t v o *

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

persons between the ages of 60 and 65 if the other conditions are
fulfilled. This was done by the Order of 4 July 1928, under which
all miners who have reached the age of 60 come under the scheme of
assistance for the aged and cease to be covered by the miners' pension
insurance scheme.
The relief pension is 600 schillings a year.
Since 1 August 1933 miners insured under the pension scheme described above are no longer entitled to an old-age assistance pension ;
but expenditure under the Miners' Insurance Order in respect of
pensions for disabled miners who have reached the age of 60 and are
Austrian citizens, is recoverable by the Miners' Insurance Fund from
the assistance fund for aged miners, up to the amount of the old-age
assistance pension payable to industrial workers, the maximum
amount recoverable being 50 schillings per month.
6.—Statistics.
See above, p. 45, IV, A, 6.
C.—DOMESTIC SERVANTS

1.—Legal Basis.
Act of 17 December 1927, amended by the Acts of 20 December
1928 and 18 August 1932.1
2.—Scope.
The scheme applies to all persons living in their employer's household and engaged in the service of the household or in the personal
service of some member of that household (domestic servants), and to
all persons who, while not being members of their employer's household,
are engaged in the service of that household whether their earnings are
entirely or mainly derived from such service or not. The scheme does
not apply to the domestic servants of employers engaged in agriculture
or forestry.
3.—Administration.
Applications for pension must be submitted to the competent
sickness insurance fund. The decision in regard to applications is
taken by the territorial workers' accident insurance institution which
also pays the pension. The contributions are paid by the sickness
insurance fund.
4.—Financial Resources.
Payments in respect of pensions for the relief of aged domestic
servants are made out of funds advanced by the State. In principle
such payments should be covered to the extent of one-half by the
employers' and wage-earners' contributions, one-sixth by the State
and one-third by the province in which the beneficiary is domiciled.
The employers' and wage-earners' contributions are collected as
supplementary sickness insurance contributions.
1
These legislative provisions have since been amended by a State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

AUSTRIA

5.—Benefits.
Pensions are payable to Austrian citizens who have reached the
age of 60 and have been employed as domestic servants for at least
two during the six years preceding the application for pension, provided they are unemployed and are in particularly straitened circumstances. Women emploj'ed in domestic service are entitled to a
pension on the same conditions when they have reached the age of 55.
The amount of the pension is 30 schillings a month. The amount
of any payments received by the beneficiary from public authorities
under the scheme for the relief of indigent persons is only deducted
from the pension if such payments are regularly received and exceed
20 schillings per month. The pension is then reduced by half the
amount of such excess provided the pension does not fall below the
legal minimum.
6.—Statistics.
See above, p. 45, IV, A, 6.
D.—AGRICULTURAL AND FORESTRY WORKERS

1.—Legal Basis.
Chapter X of the Act of 18 July 1928 concerning the insurance of
workers in agriculture and forestry ; Act of 18 July 1929.
2.—Scope.
The scheme covers workers in agriculture and forestrv (see above,
p. 21,1, B, 2.).
3.—Administration.
Applications for pension are to be submitted by persons described
later under 5 (a) to the agricultural sickness funds and by persons
described under 5 (6) to unemployment offices. The decision is taken
by the competent territorial agricultural workers' insurance institution.
Contributions are collected by the agricultural sickness funds, while
the pensions are paid by the agricultural workers' insurance institution.
4.—Financial Resources.
The expenses of the scheme for the relief of aged persons are paid
out of funds advanced by the State. Such expenditure is covered to
the extent of one-half by employers' and wage earners' contributions,
one-sixth by the State and one-third by the. province in which the
beneficiary is domiciled. In principle the employers' and wage
earners' contributions are collected as supplementary sickness insurance
contributions. The increased amount of the contribution is equal to
10 per cent, of the basic wage, and in the case of the Styrian Agricultural
Workers' Insurance Institution, 20 per cent.
5.—Benefits.
(a) Workers in agriculture and forestry who are not covered by the
unemployment insurance scheme.
A pension is payable under the scheme for relief of aged workers
to Austrian citizens who are domiciled in Austria and have reached
the age of 65, provided that during'the six years preceding their

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

application for pension they have for at least two years been engaged
in an occupation covered by the sickness insurance scheme and are
moreover definitely in necessitous circumstances.
The monthly amount is calculated as follows :
(i) In the case of claimants who are, under the Agricultural
Workers' Insurance Act required to pay insurance contributions, the
pension is equal to six and two-thirds times the basic wage, plus six
schillings, with a minimum of 18 schillings, the basic wage applied
being the average basic wage on which contributions have been
calculated during the 104 calendar weeks preceding the maturing of the
risk;
(ii) In the case of other claimants the pension is equal to 25
schillings.
(b) Agricultural and forestry workers covered by the unemployment,
insurance scheme.
A pension is payable under the scheme for the relief of aged workers
to Austrian citizens who are domiciled in Austria and have reached
the age of 60, provided that, after they have ceased to be covered by
the insurance scheme, they fulfil the conditions laid down for the
grant of emergency relief under the Unemployment Insurance Act,
or are refused unemployment benefit or emergency relief for no other
reason than incapacity for work. The workers who are covered both
by the agricultural sickness insurance scheme and by the unemployment insurance scheme are mainly those engaged in sawing timber in
agricultural and forestry undertakings and those employed by
agricultural co-operative societies.
When such persons have not reached the age of 65 and are engaged
in an occupation to which sickness insurance applies, their right to
pension is suspended.
The amount of the monthly pension is equal to 20 times that of the
daily unemployment benefit last paid to the applicant, or to which
he would have been entitled had \e been able to earn his living, the
minimum being 18 schillings.
6.—Statistics.
Number of insured persons in 1933 (yearly average) ...
... 280,000
Number of beneficiaries under the scheme for the relief of aged
persons in 1933
23,642
INCOME A S D E X P E N D I T U R E FOR

1933

(in thousands of schillings)
INCOME

EXPENDITURE

Insured persons' contributions
Employers'contributions
...
Subsidies from public authorities
Excess of expenditure
...
Total

1,731
1,731

Pensions
Cost of administration

6,819
301

3,560
98
7,120

Total

7,120

Assets at 31 December 1931

The scheme is administered financially by the State ; there are no
accumulated funds.

AUSTRIA

E.—SALARIED

EMPLOYEES

1.—Legal Basis.
Part F of the final provisions of the Act of 1928 concerning
employees' insurance.1
2.—Scope.
The scheme applies to salaried employees (see above, p. 24,1, C, 2).
3.—Administration.
Applications for pension are to be submitted to unemployment
offices. The decision is taken by the pension committees set up by the
principal institution for the various salaried employees' insurance
funds and by those of the special insurance institutions (see above,
p. 35, III, A, 3).
4.—Financial Resources.
The expenses of the scheme are borne by the principal institution
and the special insurance institutions for salaried employees. They
are covered by the ordinary accident and pension insurance
contributions (see above, p. 36, III, A, 4.).
5.—Benefits.
Pensions are payable to Austrian citizens who, during their last
month of occupational activity, were in an employment covered by
the salaried employees' insurance scheme and who had reached the age
of 60 on 1 July 1927 or, should they be unable to claim a pension under
that scheme, on 31 December 1930, provided they fufil the conditions
laid down for the grant of emergency relief or if incapacity for work
is the only reason for their inability to claim unemployment benefit
or emergency relief.
When the applicant has not reached the age of 65 and is engaged
in an employment to which the salaried employees' insurance scheme
applies, or in one covered by the workers' insurance scheme, his right
to pension is suspended. The right to benefit expires on the death of
the person concerned.
The amount of the monthly pension is equal to 20 times that of the
daily unemployment allowance last paid to the applicant or which
would have been paid to him had he been able to earn his living. The
minimum amount is 18 schillings.
1
These legislative provisions have since been amended by the State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

x O 14641

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The scale of pensions is as follows :
Pension assistance (in schillings)
Basic wage in schillings

F r o m 80 t o 9 3 - 6 0
„
93-60 t o 124-80
„ 1 2 4 - 8 0 t o 156
O v e r 156

Minimum
rate

...

36
40
44
46

Maximum rate for salaried employees
who are out of work
Childless

With one
child

Two
children

More than
two
children

46
50
56
58

48
54
60
62

50
58
64
66

52
62
68
70

6.—Statistics.
Number of insured persons in 1933, see above, p. 39, III, A, 6.
Persons in receipt of old-age assistance pensions, 995. There are
no separate accounts relating to the salaried employees' old-age
assistance scheme. Figures for this scheme are included in those
given under III, A, 6, above.

V.—Unemployment Insurance and Belief
A.—UNEMPLOYMENT

INSURANCE

1.—Legal Basis.
Compulsory unemployment insurance was organised by the Act
of 24 March 1920, which had been amended thirty times by the end
of 1933, the last amendment during that period being that of 15
December 1933.1
2.—Scope.
The scheme covers all workers and salaried employees who are
insured against sickness.
Exemption from compulsory insurance is allowed in the case of
workers only, namely, those engaged :
(a) in agriculture and forestry, as long as they are not mainly or
exclusively employed in sawing undertakings ;
(6) in private houses as domestic servants ;
(c) by several employers either alternately or simultaneously;
(d) as sub-contractors or middlemen ;
(e) as apprentices up to the beginning of their last year of
apprenticeship ;
(/) in exclusively rural communes.
3.—Administration.
The unemployment insurance scheme is administered under the
responsibility of the State.
The public bodies engaged in the relief of unemployed persons, the
district industrial committees and the unemployment offices, are
1
These legislative provisions have since been amended by the State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

AUSTBIA

placed under the authority of the Federal Minister of Social Administration. The district industrial committees consist of representatives
of the employers and representatives of the workers and salaried
employees, appointed in equal numbers by the State Minister, who
also appoints the chairman and vice-chairman of these committees.
There are eleven district industrial committees and they manage the
unemployment insurance scheme. The activities of the committees
are carried on through local unemployment offices with the co-operation
of the municipalities and of communes with less than 5,000 inhabitants.
The unemployment offices are assisted by arbitration committees
consisting of representatives of the employers on the one hand and
the workers and salaried employees on the other, in equal numbers.
4.—Financial Resources.
The expenses of the unemployment insurance scheme, including
administrative expenses, are paid out of funds advanced by the State.
They are covered partly by contributions paid in equal shares by the
employers and wage earners, and partly by State subsidies (emergency
subsidies). The employers' and wage earners' contributions are
fixed with reference to the wage classes of the sickness insurance scheme.
The State bears one-third of the administration expenses and, when
the total expenditure of the scheme exceeds 100 million schillings, it
grants an emergency subsidy equal to one-third of such excess. The
emergency subsidy is appropriated from the proceeds of a special
tax.
5.—Benefits.
Benefit is only payable to insured persons who are likely to be
destitute owing to unemployment. I t is not payable for more than
twenty weeks in any one year, save in exceptional cases, where it is
payable for thirty weeks.
The amount of the benefit varies with the ten wage classes of the
sickness insurance scheme and with the domestic circumstances of the
beneficiary.
The weekly benefit may not exceed 80 per cent, of the last weekly
salary earned by the insured person.
In the highest class the benefit is 12 • 60 schillings for unmarried persons living with their family; 16-10 schillings for unmarried persons
under 25 years of age who do not five with their family ; 16-80 schillings
for unmarried persons over 25 years of age who do not live with their
family; 18-20 schillings for married persons who are childless; 19-60
schillings for married persons with one child; 21-70 schillings for
married persons with two children ; 24-50 schillings for married persons
with three children or more.
Seasonal workers whose aggregate seasonal earnings are in excess
of 2,400 schillings (or 3,000 schillings for skilled workers) are, during
the winter season, 1 December to 31 March, only entitled to reduced
benefit.
D 2

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
Number of insured persons in 1933 (annual average) ...
... 729,572
Number of persons in receipt of benefit in 1933 (annual average) 124,131
INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of schillings)
INCOME

EXPENDITURE

.Employers'
and
insured
persons' contributions including increases in respect of
payments overdue
90,308
Fines inflicted on employers
for failure to comply with
legal provisions
...
...
63
Miscellaneous ...
...
...
1
State subsidies :
(a) ordinary subsidy
...
1,958
(6) emergency subsidy
... 7,025
Subsidies from proceeds of
emergency t a x
...
... 23,677
Total
123,032

Unemployment benefit
Cost of administration 1

Total

113,267
9,765

... 123,032

Thisfigureincludes the expenses of district industrial committees and unemployment offices
in respect of unemployment relief (see below, p. 53, V, B.).
B.—UNEMPLOYMENT

RELIEF

1.—Legal Basis.
Under the sixth amendment of 15 December 1922, to the Unemployment Insurance Act, special measures were taken with a view to the
relief of unemployment. These measures have since been amended
on several occasions.1
2.—Scope.
So long as exceptional unemployment persists in Austrian territory,
unemployment relief is payable to Austrian citizens who are unemployed,
have exhausted their right to unemployment benefit, and are in
particularly straitened circumstances.
3.—Administration.
Unemployment relief is administered by the unemployment
insurance bodies (see above, p. 50, V. A. 3.).
4.—Financial Resources.
Half the financial resources of the unemployment relief scheme
are derived from supplementary unemployment insurance contributions
paid in equal shares by the employers and wage earners. These
supplementary contributions are fixed independently for the territories
of the several district industrial committees. They may not exceed
50 per cent, of the sickness insurance contributions. The other half
is provided to the extent of one-third by the State and one-sixth by
the provinces. Expenditure in excess of these resources is covered
by extraordinary State subsidies.
1
These legislative provisions have since been amended by t h e State Act
concerning social insurance in industry. The essential provisions of this Act
came into force on 1 April 1935.

AUSTRIA

5.—Benefits.
Emergency relief is only payable to workers who are in particularly
straitened circumstances. The amount of the relief may not exceed
that of the unemployment benefit last paid to the applicant. I t is
expressed as a percentage of such unemployment benefit.
The rate of unemployment relief is, moreover, fixed by the district
industrial committees :
(a) With reference to opportunities for work in various localities,
particularly in the case of agricultural employment ;
(b) With reference to the duration of the relief, the amount of such
relief being decreased after it has been payable for a long time ;
(c) And lastly, with reference to the domestic circumstances of the
unemployed person concerned.
According to a Decree of 27 December 1933, one-fifth of the
emergency relief may consist of benefits in kind.
6.—Statistics.
Number of persons in receipt of unemployment relief in 1933
(annual average)
...
...
...
...
...
... 204,413
INCOME AND E X P E N D I T U R E FOB

1933

(in thousands of schillings)
INCOME

EXPENDITURE

State subsidies
Subsidies o u t of proceeds of
emergency tax
...
...
Provincial subsidies ...
...
Employers'
and
insured
persons' contributions including increases in respect
of payments overdue
...
Fines inflicted on employers
for failure to comply with
legal provisions
...
...
Total

29,039

Emergency relief
Cost of administration 1

...

142,812
2,718

59,648
14,520

42,295
28
145,530

Total

145,530

The greater proportion of the administrative expenses is included in the income and expenditure account of the unemployment insurance scheme (see above, p. 52, V. A, 6) ; the figure
given here only includes the expenses of paving unemployment relief and of collecting contributions
from employers and insured persons.

THIRD PART

PUBLIC ASSISTANCE
L—Poor Relief
1.—Legal Basis.
Under section 12, paragraph 1, number 2 of the State Constitution
of 1920-1929 the State enacts the basic legislation concerning relief
for indigent persons, while the provinces enact executive legislation
and are responsible for applying legislation.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(a) Basic State legislation.—Act of 3 December 1863, concerning
the right of citizenship, amended and completed by the Acts of 5
December 1896, 30 July 1925 and 20 December 1928.
(b) Executive provincial legislation.—Burgenland, Act of 25
September 1928 ; Carinthia, Act of 22 May 1886 ; Lower Austria, Act of
13 October 1893 amended on several occasions and promulgated
afresh by Decree of 3 January 1934 ; Upper Austria, Act of 5 September
1880; Salzburg, Act of 30 December 1874; Styria, Act of 27 August
1896 ; Tyrol, Act of 18 September 1928 ; Vorarlberg, Act of 7 January
1883; Vienna, Act of 11 July 1928.
2.—Scope.
The communes must grant relief to their own citizens. Moreover,
they may not refuse in cases of urgent need, to grant the necessary
relief to an indigent person who is not one of their own citizens, but they
may recover the amount from the commune of which such person is a
citizen or from any persons who are under legal obUgation to support
the beneficiary.
3.—Administration.
Responsibility for granting relief to indigent persons lies in the
first place with the communes. Measures may, however, be taken to
lighten the burden so laid upon them.
This has been done in Lower Austria and Styria. In the former,
responsibility for granting relief does not he with the communes as
such but with relief districts, each relief district consisting of all the
communes which come within the jurisdiction of a district tribunal.
In Styria, responsibility for granting relief lies in principle with the
communes, but the cost of medical aid granted to indigent persons
who are not maintained in hospitals is supported by the district.
The costs of medical aid and of maintenance in public hospitals is
not as a rule borne by the communes but by the province.
4.—Financial Resources.
Expenditure in respect of relief for indigent persons is covered by
the ordinary income of the commune in so far as the receipts set aside
for such relief are insufficient.
Among such receipts the following should be mentioned : the proceeds of the fund for indigent persons, that is the special fund set up
for the purpose of poor relief; voluntary donations (collections) ;
legal subsidies and especially the proceeds of fines which are not appropriated for other purposes ; the poor relief duties amounting to onethird levied on the estate of ministers of religion who die intestate ;
the proportional tax levied on the proceeds of public voluntary sales ;
the proceeds of duties paid for rights of citizenship ; the entertainments
tax ; the proceeds of dog licences, etc.
5.—Benefits.
(a) Definition of the risks covered.
Relief for indigent persons is payable to persons who are permanently
or temporarily unable to support themselves or to take care of their

AUSTRIA

health by their own earnings or other means. Such persons are,
moreover, only entitled to benefit when no other person is under a legal
obligation to support them.
(b) Benefits.
Relief for indigent persons, and those dependent on them, includes
means of subsistence (the board, lodging and clothing necessary to the
maintenance of life), treatment in case of sickness (attendance by a
medical practitioner and the supply of the necessary remedies and
curative means), and the education of indigent children. Further, in
the event of death the commune in which the indigent person is
domiciled must provide for a funeral complying with police regulations
and if necessary for a simple religious ceremony.
Applicants for relief who are able to work may be required to do
some appropriate work.
In principle the form of relief given to indigent persons is determined
by the communes themselves. The following measures are taken in
the various provinces :
(i) Maintenance.—Indigent persons may in return for some form
of work receive board and lodging from inhabitants of the commune
in turn. This form of relief is prohibited in Lower Austria.
Institutional maintenance : indigent persons being maintained in
some charitable institution. This course is usually adopted in the
case of persons who are quite unable to earn their living. Indigent
children are sent to children's homes or foundlings' hospitals.
Out-relief, that is, the distribution of cash and food to the poor.
(¡Li) Medical treatment.—Medical aid given ina medical establishment.
Domiciliary medical aid, that is attendance by a practitioner and
the supply of remedies, etc., at the patient's home and at the expense
of the commune.

6.—Statistics.
Relief of Indigent Persons in the Municipality
A.—NUMBER

of Vienna

OF PERSONS I N R E C E I P T OF R E L I E F AT 31 D E C E M B E R

Extended relief :
Adults
Children
Maintenance in municipal institutions
Adults
Chüdren

1933

45,500
38,400
(average figures) :
...

10,510
1,610

No statistics are available as regards the number of beneficiaries
in receipt of cash benefits and benefits in kind.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
B . — O U T - R E L I E F GRANTED IN

1933

(in schillings)
Adults
INCOME

EXPENDITURE

Expenses refunded
Proceeds of the general
relief fund
Miscellaneous
...
...
Total

133,713

Extended relief
14,853,228
Benefits in cash and in kind 3,678,712
Miscellaneous
1,218,752

1,620,169
245,589

Total
Cost of administration

1,999,471

19,750,692
869,244
20,619,936

Children and Young Persons
EXPENDITURE

INCOME

Income

Long period relief ...
...
Benefits in cash and in kind

7,232,987
711,447

Total
Cost of administration

7,944,434
2,175,942

Total expenditure of the
various departments in
the Office for young
persons
10,120,376

Total

Domiciliary Medical Aid
INCOME

Expenses refunded

EXPENDITURE

8,336 I Benefits in kind

593,810

C — I N S T I T U T I O N A L MAINTENANCE IN

Municipal

(in schillings)
and Other Homes for Indigent

INCOME

Maintenance
refunded
Miscellaneous

1933

Persons

EXPENDITURE

expenses

Expenditure

9,937,432

1,019,436
67,889

Total

1,087,325

9,937,432

Shelter for Homeless
INCOME

EXPENDITURE

Maintenance
expenses
refunded
Miscellaneous ...

8,103
25,021

Total

33,124
Municipal

INCOME

Amounts refunded

Expenditure

..851,498

Total

...851,498

and Other Homes for Young Persons
.

298,834 | Expenditure

EXPENDITURE

5,406,729

No statistics are kept of the persons in receipt of benefits in cash
and in kind.

AUSTRIA

Melief of Indigent

Persons

in Lower

Austria

N u m b e r of p e r s o n s i n r e c e i p t of relief a t 31 D e c e m b e r 1933 :
Out-relief :
Adults
Children

16,001
17,312

Institutional maintenance :
Adults :
I n h o m e s for a g e d p e r s o n s
I n h o m e s for i n c u r a b l e s . . .

4,324
947

Children :
In children's homes
I n h o m e s for i n c u r a b l e s . . .
Blind
Deaf a n d d u m b

199
242
40
64
39,129

Total

INCOME

AND E X P E N D I T U R E

FOB

1933

(in schillings)
INCOME

EXPENDITURE

Provincial subsidy
... : ,449,450
Proceeds of additional
district land taxes
... I ,249,084-88
10 per cent, contribution
from communes
... : ,234,700
Contribution from district
relief funds out of proceeds of tax on wages ... : ,642,312 11
193,231-63
Tines
Administrative expenses
refunded out of proceeds
of tax on wages, etc. ...
Expenses in respect of
relief and maintenance
for indigent persons and
their families refunded
and miscellaneous receipts
: ,222,434-47
47,525 17
Income from investments

Gross administrative expenses
1,734,495-94
Less expenses refunded out
of proceeds of tax on
wages, etc
391,031-34
Upkeep of buildings, interest and loans
refunded
Cost of levying tax on wages
Out-relief for adulta :
Extended relief...
3,279,974Urgent relief
881,236Medical attendance
425,306Medical supplies
243,978Confinements
43,308Transport expenses
107,527Funeral expenses
38,838Miscellaneous ...
138,678Out-relief for children :
Extended relief...
Urgent relief
Clothing
Transport expenses
Miscellaneous ...

Total

...15,429,769-60

3,779,522
108,422
68,173
24,098
155,162
Maintenance in homes for adults :
Homes for aged persons
Homes for incurables
Special homes
Maintenance in homes for children :
Children's homes
Homes for incurables
Special homes
...
Cost of levying district rates ...
Miscellaneous
Total

BALANCE

227,856-90
21,206-68

5,158,850-11

4,135,379-20
... 2,565,199-26
... 803,333-86
63,658-89
... 358,095-37
... 187,463-24
49,417-43
... 280,644-40
15,394-81
...15,600,996-09

SHEET

(in schillings)
A s s e t s of t h e d i s t r i c t relief f u n d s
L i a b i l i t i e s of t h e d i s t r i c t relief f u n d s ...
Deficit

1,343,464-60

566,487
1,557,949
991,462

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
Buildings and Investments
Homes for the relief of indigent persons
...
...
...
47
Buildings (mostly those of communal homes for indigent
persons, b u t also used for the distribution of out-relief ...
230
Land (the available information does not permit of ascertaining their exact value)
(in schillings)
Fixed Interest investments
...
...
...
...
...
210,285
Long term loans
1,248,000
Health and Relief Services of Vorarlberg in 1933
Maintenance of sick persons ...
...
...
...
... 75,975-60
Contribution towards the maintenance of insane persons ... 82,188-30
Vaccination expenses ...
...
...
...
...
... 1,824-27
Provincial subsidy for the pensions fund of medical officers
employed by communes
...
...
...
...
...
2,100-00
Contribution towards the cost of urgent relief for unemployed
persons
379,619-49
Contribution towards the cost of relief for aged persons ... 291,257 • 44
Contribution towards the cost of relief for aged domestic
servants
12,49900
Contribution towards the cost of relief for aged persons under
the Act concerning the insurance of agricultural workers 18,995-71
Subsidy for the relief of war victims ...
...
...
... 10,000-00
Subsidy for the Young Persons Welfare Association of the
Tyrol and Vorarlberg
10,00000
Subsidy for infant welfare
7,000-00
Subsidy towards maintenance of blind and deaf and dumb
children in homes
...
...
...
...
...
...
4,353-55
Subsidy for holiday camps
...
...
...
...
...
7,000-00
Bonuses for wage earners who have completed 25 to 40
years of uninterrupted service
...
...
...
...
3,496-80
Financial aid for students'institutions
...
...
... 1,100-00
Travelling assistance for indigent travellers ...
...
...
15-00
Bonuses for life-savers ...
...
...
...
...
...
100-00
Contribution towards the laying of water pipes
...
...
680-00
Contribution towards the prevention of drunkenness
...
2,500-00
Contribution towards winter relief
...
...
...
... 24,135-00
Miscellaneous Total
contributions
...
...
...
...
... 935,880-16
1,040-00

Payments on behalf of provincial establishments (Valduna Lunatic
Asylum and the Gaisbühl Sanatorium for Consumptives) amounted in
1933 to 31,476-40 schillings.
The very considerable expenditure of the communes in respect of
poor relief in 1933 could only be ascertained by means of extensive
investigations, for which there was no time.

H.—Assistance for Victims of Inflation
A.—PERSONS

E N T I T L E D TO L I F E A N N U I T I E S

1.—Legal Basis.
Act concerning persons entitled to life annuities (Bulletin of Laws,
No. 6 of 1927). Amendment to the Act concerning persons entitled
to life annuities (Bulletin of Laws, No. 63 of 1929).

AUSTRIA

2.—Scope.
Although any idea of a general revalorisation was rejected,
measures have been taken for the relief of persons in necessitous circumstances who were, in virtue of an insurance policy concluded in
1919 a t the latest, entitled to an immediate or deferred life annuity.
F u r t h e r conditions are laid down for the grant of relief : beneficiaries
must be Austrian citizens and must Uve in Austria ; their annuity must
have amounted to a t least 240 crowns and their yearly income must
not exceed 3,600 schillings Special restrictive provisions have been
made in regard to deferred life annuities, invalidity and survivors'
pensions due in virtue of a private insurance policy, and Ufe annuity
contracts concluded with mutual associations, etc.
Insurance poUcies providing for p a y m e n t of a capital amount
(Ufe and endowment insurance) are specifically excluded.
3.—Administration.
The scheme is administered by a " fund for persons entitled to life
annuities," which has legal personality and the financial resources of
which are derived from contributions, varying in amount according to
requirements, from Ufe insurance companies operating in Austria. The
amount of the contributions varies with the gross amount of the
premiums paid to such companies in respect of Ufe insurance poUcies
of aU kinds (and not only Ufe annuity poUcies concluded in Austria).
The volume of the Ufe annuity business carried on by each institution
is, however, taken into consideration. An a t t e m p t is made in this
way to distribute the burden equitably among the institutions with
reference to the extent of their Ufe annuity business.
The fund is administered by the State Minister of Social Administration, in consultation with the State ChanceUor's Office.

4.—Financial Resources.
These consist of the contributions mentioned above. The administrative expenses are borne by the State, b u t no subsidy is paid
by pubUc authorities.
5.—Benefits.
Life annuitants (cf. 2) receive " compensating annuities ", the
a m o u n t of which is equal to the product of the annuity fixed in the
poUcy and expressed in crowns multipUed by a coefficient varying between 3,150 and 750. The coefficient varies inversely with the amount
of the annuity. The minimum compensating annuity is 108 schilüngs.
There is no absolute maximum.
The State Minister of Social Administration, in consultation with
the State ChanceUor's Office, decides whether the legal conditions
have been fulfiUed and fixes the amount of the compensating annuity.

INTERNATIONAL SURVEY OF SOCIAL, SERVICES, 1933

6.—Statistics.
INCOME AND E X P E N D I T U R E FOR

1933

(in schillings)
INCOME

EXPENDITURE

Contributions from insurance institutions (cf. 4) ... 539,143 • 61
Interest
117-22

Compensating annuities ...539,232-46
Cost of administration (not
including salaries and
office supplies which are
borne by the State)
...
28-37

Total

539,260-83

Total

539,260-83

B.—SMALL CAPITAL HOLDERS

1.—Legal Basis.
Act concerning small capital holders (Bulletin of Laws, No. 251 of
1929), amendments to the Act concerning small capital holders
(Bulletin of Laws, No. 239 of 1930 and No. 565 of 1933>.
2.—Scope.
Although any idea of a general revalorisation was rejected, measures
were taken for the relief of persons in necessitous circumstances who,
during the period between 31 December 1918 and 1 January 1920, had
a capital of at least 6,000 crowns invested in Austrian gilt-edged
securities or in savings accounts, or who, during that period, received
from funds or endowments regular payments, the capitalised value
of which amounted to 6,000 crowns, the value being capitalised at the
rate of twenty years' purchase. Such capital or payments must have
lost all economic value owing to the dévalorisation of the crown.
Relief cannot therefore be claimed in respect of private mortgage or
other credits, shares, capital participations, holdings of foreign currency,
etc. Applicants must, further, be Austrian citizens, üve in Austria, be
under 55 years of age if they are women, and 60 if they are men, or be
wholly incapable of supporting themselves owing to some mental or
physical infirmity.
The scheme also covers securities inherited from consorts or
relatives in the ascending or descending line between 31 December
1918 and 31 January 1930. A surviving consort may, moreover,
continue to receive a " maintenance annuity " (cf. 5).
The maintenance annuity is not payable, or is only partly payable,
according to the amount; to persons in receipt of a monthly income
of 150 to 230 schillings. If such income exceeds 230 schillings, the
allowance is not payable at all.
3.—Administration.
The institution responsible for distributing relief is " Fund for Small
Capital Holders ". This fund has legal personality and is administered
by the State Minister of Social Administration, in consultation with
the State Minister of Finance.

AUSTRIA

4.—Financial Resources.
Of t h e fund's annual expenditure, 75 per.cent. is covered b y a
Federal subsidy a n d the remaining 25 per cent, by contributions shared,
According t o a fixed scale, b y all the communes in Austria. The sum
required for each financial period is fixed every year, when the draft
S t a t e Budget is adopted, allowance being made for communal contributions. The fund has no capital.
5.—Benefits.
Persons who fulfil all t h e necessary conditions are entitled t o a
maintenance annuity, the amount of which varies, according to nine
different classes, with the amount of the devalorised capital considered.
The minimum annuity is 180 schillings (for capital amounts between
6,000 a n d 20,000 crowns), and the maximum 960 schillings (for
•capital amounts in excess of 100,000 crowns). The minimum annuity
is payable in advance in weekly instalments. The other annuities
a r e also payable in advance b u t in monthly instalments.
Beneficiaries who, before the Act came into force, were in receipt
of " relief for small capital holders " amounting to more t h a n their
maintenance allowance continue to receive the larger amount, the
Act having made provision for the payment of a supplement t o the
maintenance annuity in such cases.
The State Minister of Social Administration m a y grant extraordinary
relief t o small capital holders out of a fund set up for this special
purpose. Such relief is granted more especially t o persons who cannot
•claim t h e annuity, when the refusal t o grant the annuity seems t o be
particularly severe (that is, when legal requirements are all b u t fulfilled in respect t o proof, dates, age or amount of capital).
Decisions in regard t o the grant of annuities (but not extraordinary
relief) a n d all questions connected therewith are taken by the committee of the F u n d for Small Capital Holders. The sub-committees
consist of a representative of the State Ministry of Finance, a representative of the beneficiaries under the Act, who is appointed by the
S t a t e Ministry of Social Administration and a magistrate who acts as
•chairman. The chairman and members of the sub-committees do
not take instructions from anyone and are entirely free to take such
•decisions as they consider fit. The Committee's decisions m a y neither
be cancelled nor amended b y a n y administrative decision.
The Small Capital Holders F u n d is administered by an office
which is attached to t h e Federal Ministry of Social Administration.
•6.—Statistics.
INCOME AND E X P

rDITUKB FOE 1933

(in sc lings)

INCOME

EXPENDITURE

:State subsidy
11,200,000
•Communal subsidies ... 3,733,341
Interest
13,888-32
Deficit (covered b y the
surplus from 1932) ...
494,61801

Maintenance
annuities
and relief for small
capital holders
...15,022,823-39
Extraordinary relief
... 174,486 —
Administrative expenses
(1-6 per cent.)
... 244,537-94

Total

...15,441,847-33

Total

...15,441,847-33

INTERNATIONAL STJBVEY OF SOCIAL SERVICES, 1933

• m.—Winter Relief
1.—Legal Basis.
Decree of 27 October 1933.
2.—Scope.
The Winter Belief scheme was organised for the benefit of unemployed persons who no longer receive emergency relief and
who are in necessitous circumstances and for other persons in
necessitous circumstances.
3.—Administration.
Relief is granted by the State Government, the communes and
charitable institutions. Relief organisations subsidised by the State
are to be clearly described as " the State Government's Winter Relief ".
The State Government is entitled to exercise supervision, through its
administrative bodies, over all relief activities subsidised by the State.
4.—Financial Resources.
The State Government is authorised to grant subsidies from the
Federal treasury to communes and charitable institutions participating
in the winter relief scheme. State subsidies are only to be paid to communes which have not sufficient means to provide for the relief of
indigent persons.
5.—Benefits.
State subsidies consist either of cash or food and other supplies.
Cash subsidies may only be used for the purpose of buying food and
other supplies produced within the country. State subsidies must be
used for relief granted between 27 November 1933 and 14 April 1934.
6.—Statistics.
The figures given below refer to relief granted between 27 November
1933 and 14 April 1934.
The number of completely destitute persons was estimated a t
282,364 and the number of persons whose need was partial at 352,800.
The State subsidy amounted to 3,500,000 schillings, while donations amounted to 1,275,515 • 57 schillings. The proceeds of collections
amounted to 23,880 kg. of various foodstuffs, 22,065 pieces of clothing,
and 6,300 metres of cloth.
Gifts of firewood amounted to 147,000 kg. The proceeds of the
coal collection amounted to 118,925-21 schillings, plus gifts in kind
amounting to 1,016 tons of Austrian coal and 550 tons of foreign coal
and briquettes.
The total administrative expenses of the Winter Relief Scheme
amounted to 7,698-08 schillings.

AUSTRIA
General Statement of the Income and Expenditure of the Stale Government's
Winter Relief Scheme
(in schillings)
A.—State subsidy :
Reduction
Amount spent
Amount paid to the Postal Savings Fund
for expenses of payment
...
...

3,500,000
100,000
3,391,430
50

Less

Balance

8,520

B.—Proceeds of various collections, etc. :
Donations
Collected out of salaries and wages
Collection made in schools
Collection made by the State Ministry of Trade and
Transport
Payment made by t h e State Ministry of Trade and
Transport for the purchase of firewood for the
Municipality of Vienna
Sale of postage stamps for the Winter Relief Scheme
Sale of sealing stamps for the Winter Relief Scheme
Puzzle competition with posters (net proceeds)
Interest ...
Total

3,491,480

...

Amount spent up to date :
Distribution and payments to the
Municipality of Vienna and the
provinces
Other expenditure

872,557-98
312,158-15
90,799-44
91,302-89
100,000
49,000
25,848-63
4,727-76
3,328-50
1,549,723-35

1,262,569-62
7,696-08
1,270,265-70

Balance
Total Balance (A and B)

279,457-65
287,977-65

Add to the total proceeds under B above
...
... 1,549,723-35
The receipts notified ao far by provinces, districts
and communes
867,901-89
The total proceeds from collections, etc., amount
to
2,417,625-24
The amount collected on salaries and wages or in schools came from 21,877
different sources.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

FOURTH PART

HOUSING
A.—DIRECT PROMOTION BY THE GBANT OF STATE SUBSIDIES

1.—Legal Basis.
Chapter 1 of the State Act concerning rents and the promotion of
housing (Bulletin of Laws, No. 200 of 1929), amended by Decree
(Bulletin of Laws, No. 192 of 1933).
2.—Type of Dwellings for which Subsidies are granted.
Subsidies may be granted under the above Act and Decree to
finance the building, complete transformation, enlarging, raising and
extension (by building annexes) of dwellings in communes where there
is a housing shortage. The subsidies may only be used for the purpose
of providing small or middle-sized flats. The inhabitable surface
should not in any case exceed 60 square metres in the case of small
flats, 100 square metres in the case of middle-sized flats, and in certain
exceptional cases 130 square metres.
3.—Institutions and Persons to whom Subsidies may be granted.
State housing subsidies may be granted to all physical persons
and bodies with legal personahty whether private or public. Physical
persons must be Austrian citizens, while bodies with legal personahty
must have their head office in Austria. Cheap dwellings are chiefly
built by special associations of public utility and public bodies corporate.
4.—Financial Support granted by Public Authorities.
In virtue of the provisions mentioned above, a person or body who
undertakes to build small flats receives from mortgage institutions in
the State concerned, which are specially appointed for the purpose,
long-term loans guaranteed by a second mortgage up to 50 or 60 per
cent, of their recognised capital requirements, provided the State has
undertaken to subsidise the scheme.
A person or body who undertakes to build small flats is relieved of.
all legal obligation to the mortgage institution for the repayment of
the capital amount of the loan and the payment of interest (at present
5 per cent, in gold). On the other hand, such person or body must
pay the competent financial authority a contribution towards the repayment of capital, plus interest at 1 per cent, on the outstanding
amount. The yearly amount of the contribution is very small.
5.—Statistics.
In 1933, 539 small flats and 10 middle-sized flats were built with
the aid of the subsidies described above. The total expenditure was
7,796,000 schillings. The loans subsidised by the State amounted to
4^409^000 schillings.

AUSTRIA
B.—INDIRECT

PROMOTION BY THE GRANT OF (1) FISCAL FACILITIES
AND (2) EXEMPTION PROM TAXATION

1. I n virtue of the provisions contained in the first chapter of the
Act concerning rents and the promotion of housing, all applications
for the grant of subsidies under the Act and appendices to such applications, all legal instruments, documents and entries in the real
property register, connected with such applications are exempted from
s t a m p a n d other duties. I n application of State Act, No. 211 of 1932,
amended by a Decree of the State Government (Bulletin of Laws, No.
140 of 1933), all legal instruments normally dutiable and relating to the
purchase of land and all documents and entries in the real property
register connected with the raising of capital for new buildings and
for the complete transformation of existing buildings started after
31 December 1931 and finished before 1 J a n u a r y 1936 are exempted
from stamp a n d other duties.
2. The first chapter of the Act concerning rents and the promotion
of housing further contains provisions to the effect t h a t all provinces
within the territory of which dwelling houses are built with the aid of
State subsidies shall for a period of not less t h a n 20 years exempt
such houses from the payment of the tax on dwelling houses levied in
the province concerned.
C—SETTLEMENTS

1.—Legal Basis.
Act of 15 April 1921 {Bulletin of Laws, No. 252), concerning the reorganisation of the State Housing F u n d as a State Housing and
Settlements Fund.
Rules of the State Housing and Settlements F u n d (Ministerial
Circular of 6 April 1925 (Bulletin of Laws, No. 187).
2.—Types of Settlement Building.
1. Suburban settlements (" subsidiary earnings settlements ") :
blocks of buildings for unemployed workers, seasonal workers, and
workers on short time, etc. (the inhabitable area of each flat should not
exceed 80 square metres).
2. Detached houses : houses containing small dwellings for one
or more families (the inhabitable area of each dwelling should not
exceed 80 square metres).
3.—Bodies concerned.
The only bodies which are entitled to facilities under the Act are
communal authorities, public bodies corporate, and associations
recognised as being of public utility (co-operative and other societies).
I n practice, suburban settlements are only built b y communal authorities and co-operative buying and producing societies of public utility,
while detached houses are almost exclusively built b y co-operative
buying and producing societies.
*

G 14641

INTERNATIONAL SUBVBY OF SOCIAL SERVICES, 1 9 3 3

4.—Finance.
In 1933, about 2 million schillings were budgeted for the Housing
and Settlements Fund with a view to financing the building of settlements. To this amount should be added other appropriations from the
surplus proceeds of the tax on interest and from payments into the
sinking fund for housing loans. These appropriations amounted to
about 275,000 schillings. Further, the fund received interest on
instalments on earlier loans which it had taken over.
5.—Expenditure on Building.
In 1933, loans amounting to 1,883,000 schillings were granted in
respect of 418 settlements. Further, loans amounting to 1,196,000
schillings were granted in respect of 68 detached houses containing
126 flats in all.

FIFTH PART
FAMILY ALLOWANCES
A.—STATE

EMPLOYEES

1.—Legal Basis.
Act concerning the salaries of State employees, amended by
Decree of 4 May 1928.
2.—Allowances.
State employees, including postal, telegraph and telephone
employees, receive a yearly allowance of 60 schillings for one child,
180 schillings for two children, 420 schillings for three children, 720
schillings for four children, 840 schillings for five children, 1,140 schillings
for six children, and 120 schillings for each additional child. The
allowance is paid in respect of each child under 21 years of age whom
the employee is under a legal obligation to support. If the child continues his studies or receives vocational training, the allowance is paid
up to the age of 24. If, owing to invalidity, the child is unable to
support himself, there is no age limit to payment of the allowance.
Besides children's allowances, a uniform household allowance of 60
schillings per annum is payable.
Further, in pursuance of a provision contained in the third amendment of 20 December 1929 to the Act concerning salaries, State
employees with two or more children receive education allowances up
to a maximum amount of 600 schillings per annum.
3.—Statistics.
About 75 per cent, of the State employees are in receipt of family
allowances (children's allowances, or household allowances for childless
couples). Total payments in respect of family allowances lie between
2 and 4 per cent, (according to the group of employees considered) of
State expenditure on staff.

AUSTEIA
B.—CHEMISTS

1.—Legal Basis.
Act concerning salaries funds (Bulletin of Laws, No. 23 of 1928),
which regulates the remuneration of persons employed in private
pharmacies or under private contract of employment in public
pharmacies.
2.—Scope.
The Act concerning salaries funds applies throughout Austrian
territory.
3.—Institutions responsible for paying Allowances.
The institution responsible for paying allowances is the Austrian
Pharmaceutical Salaries Fund, the head office of which is in Vienna.
The employers (owners of pharmacies) are required to pay the Fund a
contribution, the amount of which is fixed by an Order of the State
Ministry of Social Administration, irrespective of the employee's
family circumstances (§ 8 of the Decree of 20 June 1933, Bulletin of
Laws, No. 340). The Fund then pays the beneficiaries the family
allowances for which contribution is made in section 1 of the Act
concerning salaries funds (Bulletin of Laws, No. 23) of 1928.
4.—Conditions for the Grant of Allowances.
Allowances are paid in respect of :
Legitimate children and grandchildren, legitimised and adopted
children, illegitimate children and legitimate children by a previous
marriage of the beneficiary's consort, provided all such children are
under 21 years of age, are unable to support themselves and five in the
beneficiary's household;
The beneficiary's wife if the married couple live together ;
Parents and grandparents living permanently in the beneficiary's
household, and whom the beneficiary is under a legal obligation to
support.
If the beneficiary has no wife in respect of whom he might claim an
allowance, the latter may also be granted in respect of a housekeeper,
provided she is not engaged in any other occupation.
The number of persons in respect of whom allowances are granted
may not exceed seven.
5.—Amount of Allowances.
In virtue of an appendix to the Order made in pursuance of the
Act concerning salaries funds and issued by the State Minister of
Social Administration on 20 July 1933 (Bulletin of Laws, No. 340), the
family allowance per head is 23 schillings in class A localities, 20
schillings in class B localities, and 17 schillings in class C localities.
6.—Statistics.
(a) 614 chemists employed in 1933 in pharmacies paying allowances;
(6) 380 chemists received allowances in 1933;
(c) 211,169 schillings were paid in allowances in 1933.
E2

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1 9 3 3
C.—STATE RAILWAY EMPLOYEES

1.—Legal Basis.
State Act of 19 July 1923 (Bulletin of Laws, No. 406) and Decree of
10 April 1933 [Bulletin of Laws, No. 122). The family allowances
paid to State Railway employees are known as cost-of-living allowances
for children.
2.—Scope.
The above provisions apply to all employees covered by the rules
concerning pay and to pensioners and widows in receipt of pension.
3.—Payment of Allowances.
The allowances are paid by the undertaking in which the beneficiary
is employed.
4 and 5.—Conditions for the Grant of Allowances.—Amount of Allowances
Under the provisions in force until 30 April 1933, beneficiaries,
whether employees or widows, received, in respect of each child who
fulfilled the conditions for the grant of benefit, was under 21 years of
age, and could be considered as unable to support himself, a cost-ofliving allowance amounting to 5 schillings per month. Allowances
were also payable in respect of the beneficiary's legitimate children
over 21 years of age, provided that they were not in receipt of any
other aid and were, owing to bodily or mental infirmities, unable to
support themselves, or, again, were not as yet, owing to continued
studies or vocational training, able to support themselves. In such
cases, however, the allowance was only payable up to the age of 24.
In worthy cases, relief equivalent to the allowance was likewise
payable in respect of each legitimate child by an earlier maniage of
the beneficiary's consort, and in respect of each adopted or illegitimate
child of the beneficiary, provided such child lived in the beneficiary's
household, was supported by the latter, was under 21 years of age, and
could not be considered as having means of his own.
A married employee also received a cost-of-living allowance,
described as a housekeeping supplement amounting to 5 schillings per
month, in respect of his wife, provided she were not herself in the
employment of the State, or a province or commune, and was not in
receipt of a pension from public funds.
Widows who were, in virtue of the two preceding paragraphs,
entitled to a cost-of-living allowance or relief for children, also received this housekeeping allowance. Divorced employees who were
under a legal obligation to support their former wife were treated on
the same footing as married couples, or in other cases as widowed
employees.
Paragraph 19 of the State Government's Order (Bulletin of Laws,
No. 122) of 1933, abrogated, as from 1 May 1933, the provisions relating
to the grant of housekeeping allowance, including the cost-of-living

AUSTRIA

allowance paid in respect of a wife, and fixed the amount of children's
allowances as follows, without altering the conditions for the grant of
such allowances :
Schillings

1 child
2 children

...

per month
10
...
15
35
60
70
95

The allowance is increased by 10 schillings per month in respect
of each additional child over and above six.
6.—Statistics.
In 1933, the total staff in active employment was 60,255, and the
number of pensioners 76,840. The total amount of the family allowances (cost-of-living allowances for children) paid to persons in active
employment, amounted to 9-3 million schillings, and that of the
allowances paid to pensioners to 4-4 million schillings
Extensive investigations, for which there is no time, would be
necessary to ascertain the number of employees and pensioners in
receipt of allowances.
D.—WORKERS AND EMPLOYEES IN PRIVATE UNDERTAKINGS

Family allowances payable by the employer are only stipulated
in a few collective agreements. In 1933, there were 20 such collective
agreements applying to commercial occupations and making provision
for family allowances in the form of 10 per cent, increase in salary or
wages.
No other information is available.

SIXTH PART

HOLIDAYS W I T H PAY
1.—Legal Basis.
Holidays are dealt with in several Acts. Apart from the Act
concerning workers' holidays, a series of other Acts regulating conditions
of work for various categories of workers, also deal with holidays.
2.—Scope.
Workers
Salaried employees
Salaried employees of large estates
Journalists...
Domestic servants
Theatrical performers
Gatekeepers
Private motor drivers
Agricultural workers

Act of 30 July 1919.
„ 11 May 1921.
„ 26 September 1923.
„ 11 February 1920.
„ 26 February 1920.
„ 13 July 1922.
„ 13 December 1922.
„ 20 December 1928.
Various State laws.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

3.—Conditions for the Grant of Holidays.
As a rule, the right to holidays depends on the completion of a minimum length of service with the same employer or in the same undertaking, or on the conclusion of a contract of employment for a given
period. The minimum length of service stipulated is :
Workers ...
...
...
...
... 1 year.
Salaried employees
...
...
... 6 months.
Salaried employees of large estates
... 6
„
Journalists...
...
...
...
... 6
„
Domestic servants
...
...
... 1 year.
Theatrical performers
...
...
... 6 months.
(It is sufficient t h a t a contract
of employment should have
been concluded for a t least six
months, or t h a t the performer
should have been employed
for at least six months.)
Gatekeepers
...
...
...
... 1 year.
Private motor drivers
...
...
... 1 „
Agricultural workers
...
...
... 1 „ (as a rule.)

4.—Length of Holidays.
The length of holidays varies according to the different categories
of workers and to the length of service completed.
Workers, gatekeepers and motor drivers are entitled to one week's
holiday after one year's work, and two weeks after five years' work.
Young workers under 16 years of age are entitled to two weeks' holiday
after one year's work. In the case of salaried employees in general,
and those employed on large estates, the length of holidays varies from
two to five weeks, according to length of service. Journalists are
entitled to one month's leave, and, if they have been employed for
more than ten years, six weeks' leave. Domestic servants have
from one to three weeks' holiday.
The following rules apply to theatrical performers. If their contract has been concluded for more than one year, or if they have been
employed for not less than one year, they are entitled to at least four
weeks' holiday. If they continue in employment for a longer period,
they are entitled to two additional days' leave for each additional year
under contract, up to a maximum of six weeks.
The holidays of agricultural workers vary from three days to three
weeks, according to the State in which they are employed and their
length of service.
5.—Amount of Remuneration during Holidays.
While they are on holiday, workers are entitled to their cash
wages. Certain Acts provide that workers who receive board and
lodging from their employer shall, while on holiday, receive, in addition
to their wages in cash, a supplementary compensating allowance.
Domestic servants are entitled to their wages and a supplementary
holiday allowance, the amount of which varies with the length of their
holidays. Agricultural workers are entitled to their normal remuneration in cash and in kind ; in certain States, however, an equivalent cash
allowance is payable in lieu of wages in kind, including food.
6.—Statistics.
No statistical information is available.

BRAZIL
SUMMARY
PAGE

FIRST P A R T :

Statistics of Population

SECOND P A R T : Social Insurance

...

.,,

...

... 72

I.—Workmen's Compensation

II.—Sickness, Invalidity, Old-Age and Widows'
and Orphans' Insurance for the Staffs of
Public Utility Undertakings
...
... 74
III.—Seamen's Accident, Sickness, Invalidity,
Old-Age and Widows' and Orphans'
Insurance
...
...
...
...
... 76
TiirRD PART :

Holidays with Pay

...

INTERNATIONAL SURVEY OF SOCIA!. SERVICES, 1933

FIRST

PART

STATISTICS OF POPULATION
E M P L O Y E D POPULATION CLASSIFIED B Y OCCUPATIONAL G B O U P S ,

1930

(ESTIMATE B Y THE MINISTRY OF LABOUR, I N D U S T R Y AND COMMERCE) 1

Agriculture and stoekraising ..'.
...
...
Mines and quarries
...
...
...
...
Manufacturing industries (including building)
Transport and communications
...
...
Commerce and banking (including hotels) ...
Liberal professions
...
...
...
...
Domestic servants and unskilled workers ...
Total

8,860,0002
40,000
931,000
365,000
752,000
240,000
700,000
11,888,000 s

On 1 January 1933 the total population was estimated at 44,002,095.
•Not more thin 20 per cent, of this number are employed persons; the remainder are
persons holding land under various types of tenancy.
3
Public administration is excluded.

SECOND

PART

SOCIAL INSURANCE
I,—Workmen's Compensation
1.—Legal Basis.
The employer's liability for industrial accidents was established
by Decree No. 3724 of 15 January 1919.1
2.—Scope.
The employer is hable to pay compensation to all workers and
apprentices in building undertakings, transport undertakings (including
work in docks), industrial undertakings and agricultural work, in
which mechanical power is used.
3.—Administration.
The employer may discharge his liability by insuring with a
company duly authorised to carry on industrial accident insurance;
he may likewise insure with trade unions offering the same degree
of safety as insurance companies. All such institutions are placed
under the supervision of the National Labour Council.
'This Decree was repealed b y Decree No. 24637 of 10 July which extended
the system of compensation to all wage earners and guaranteed the payment
of benefit in all cases of accident.

BBAZIL

4.—Financial Resources.
The employers bear the entire cost of insurance.
5.—Benefits.
(a) 'Definition of the risks covered.
The employer is required to pay the compensation laid down in
the Decree in case of industrial accidents. For the purposes of the
Decree an industrial accident is deemed to be (1) an accident due to a
violent external cause involuntarily incurred in the course of employment and entailing bodily injuries or functional disturbances, and
i(2) diseases contracted exclusively during the course of employment
when the employment itself is of a nature to produce such diseases.
The following maladies are deemed to be occupational diseases :
poisoning from lead, mercury, copper, phosphorus, and arsenic
and its derivatives, pneumoconiosis caused by dusts and the handling
of tobacco, ophthalmia produced by ammonia, poisoning by carbon
bisulphide or by carburetted hydrogen, and malaria.
(b) Benefits in kind.
The employers are required to provide medical treatment,
medicines, and hospital treatment where necessary.
(c) Cash benefits.
1. Compensation is based on annual wages not exceeding 2,400
milreis.
2. In case of temporary incapacity, compensation takes the form
of a daily allowance equal to one-half of the loss of wages incurred.
I t is payable for not more than one year and is deducted from any
sum due in case of permanent incapacity or death.
3. In case of permanent total incapacity, compensation is equal to
three years' wages; in case of permanent partial incapacity, compensation varies between 5 and 60 per cent, of that amount in
accordance with the scale given in the administrative regulations
concerned.
4. In case of death the surviving widow (widower) and legal heirs
are entitled to a sum equal to three years' wages, plus 100 milreis for
funeral expenses.
6.—Statistics.
INCOME AND E X P E N D I T U B E OF F O U B INSURANCE COMPANIES IN

1933 1

(in Contos)
INCOME

Premiums paid b y employers 12,069

EXPENDITURE

Benefits
...
...
Cost of administration

...
...

8,158
6,118

1
In 1933 six oompanies and one trade union for the textile industry were encaged in accident
insurance. The premium Income of the six companies in 1934 amounted to 16,500 contos.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

LT.—Sickness, Invalidity, Old-Age, and Widows' and Orphans'
Insurance for the Staffs oí Public Utility Undertakings
1.—Legal Basis.
The insurance system now in force was introduced by Decree No.
20465 of 1 October 1931, as amended by Decrees No. 21081 of
24 February 1932 and 22098 of 16 February 1932.1
2.—Scope.
Insurance is compulsory for the staffs of public utility services,
viz., land transport, lighting, power, telegraph and telephone, harbour,
water, sewer, whether worked directly by the public authorities or
private individuals, and for wage-earning or salaried employees in
mines of all classes.
Supernumerary workers are covered by insurance only if they are
employed for not less than 30 consecutive days.
3.—Administration.
The insurance system is managed by the funds which all undertakings liable to insurance must set up for their staff; small-scale
undertakings may set up a single common fund. All funds are placed
under the supervision of the National Labour Council. Each fund is
managed by a committee of whom half the members are elected by
the insured persons and half by the undertaking. The chairman is
chosen by common agreement.
4.—Financial Resources.
The income of the insurance funds is derived from :
(1) The insured person's contribution which includes (a) a percentage of his monthly remuneration, fixed by each fund between
3 and 5 per cent, (up to 2,000 milreis); (6) an entrance fee equal to
one month's remuneration, payable in 60 monthly instalments; and
(c) one month's increment, payable in a lump sum, whenever the
remuneration is raised ;
(2) Discount charged on all classes of invalidity or old-age pensions
in excess of 600 milreis a month, such discount varying from 3 to
15 per cent, according to the rate of the pension ;
(3) The annual contribution of the undertaking, equal to 1|- per
cent, of the gross receipts, but not less than the total proceeds of the
basic contributions paid by the insured persons ;
(4) A welfare tax, fixed provisionally at 2 per cent., which is added
to the fares, rates or prices paid by the public for services rendered
by the undertakings, or for minerals ;
(5) Interest on accumulated capital.
1
A number of important amendments were made by Decree No. 24744 of
14 July 1934 in the provisions governing the calculation of old-age pensions.
I n 1935 the possibility of amalgamating various funds was under consideration.
I n conformity with the Constitution and with Decree No. 159 of 30 December
1935, the undertakings, the insured and t h e Federal Government will each bear
one-third of the cost of insurance.

BBAZIL

5.—Benefits.
(a) Definition of the risks covered.
The insurance covers the risks of sickness, invalidity, old age
and death.
1. The only benefit granted in case of sickness is benefit in kind,
this being granted also to members of the insured person's family.
2. In case of invalidity, a pension or lump sum is granted to every
insured person who is unable to discharge the duties of his post or
any other post to which equal remuneration is attached and which is
compatible with his normal activity or mental capacity. The pension
may be combined with any compensation received for permanent
incapacity caused by an industrial accident.
3. An old-age pension or lump sum is granted to every insured
person from the age of 50 after 30 years' service in undertakings liable
to insurance either before or after the introduction of the system,
or from the age of 55 after 20 years' service. The allocation of a
pension or lump sum is conditional on the cessation of all insurable
employment.
4. On the death of an insured person, a pension or lump sum is
paid to the widow (invalid widower), male children under 18 years
or invalid male children, unmarried female children, or, in the absence
of such dependants, to the widowed mother, invalid father or unmarried sister. Survivors may claim a pension only if they were
wholly dependent on the deceased person.
(b) Benefits in kind.
Benefits in kind include medical treatment and hospital treatment
(30 days) organised and provided by each fund within the measure of
its means. Expenditure for such purposes may not exceed 10 per
cent, of the income of the preceding financial year. Medicines are
supplied at cost price.
(c) Cash benefits.
1. The allocation of an invalidity or old-age pension is conditional
on the completion of a qualifying period of five contribution years
with the fund of which the insured person is a member. The pension
is equal to one-thirtieth of the prescribed percentage1 of the basic
remuneration for each year of service and may not be more than 2,000
or less than 200 milreis a month. If an insured person has not
completed five contribution years when the risk materialises, he is
entitled to the refund of his contributions with compound interest at
4 per cent, per annum.
2. The allocation of survivors' pensions is also conditional on the
completion of a qualifying period of five contribution years. The
joint pension payable to the whole body of survivors is fixed at 50 per
* This percentage is fixed b y each fund for a period of three years a t a figure
varying between 70 and 100, according to t h e financial position of t h e fund
concerned.

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1 9 3 3

cent, of the old-age or invalidity pension which the deceased was
receiving or which he could have claimed at the time of his death.
Survivors are entitled to a refund of the deceased person's contributions
in analogous conditions to those laid down in the preceding paragraph.
6.—Statistics.
On 31 December 1933, the number of insured persons was 210,883.
At the same date the number of current old-age and invalidity
pensions was 11,916, while 12,734 persons were in receipt of survivors'
pensions.
INCOME AKD E X P E N D I T U R E (159 F U N D S O F A TOTAL OF 169) F O B 1933

(in Contos)
INCOME

EXPENDITURE

Contributions
of
insured
Benefits in kind
...
... 7.65Î
persons
... 29,697 Cash benefits :
Contributions of the underInvalidity pensions 9,093 "
takings
... 26,803
Old-age pensions
26,341
Welfare t a x
... 28,189
Survivors' pensions 8,143 >- 43,727
Interest on capital
... 15,385
Refund of contriMiscellaneous ...
... 1,899
butions
...
... 150^
4,705
Cost of administration
563
Miscellaneous ...
Total

... 101,973

Total

... 56,647

At 31 December 1933 the assets of the funds were estimated at
279,883 contos, including 203,688 invested in public debt securities,
20,297 in loans to the insured, and 3,726 in property.

in.—Seamen's Accident, Sickness, Invalidity, Old-Age and Widows'
and Orphans' Pensions
1.—Legal Basis.
This system was established by Decree No. 22872 of 29 June 1932,
as amended by Decree No. 22992 of 26 July 1933.1
2.—Scope.
Insurance is compulsory irrespective of nationality for the officers
and crews of all Brazilian vessels and fishing boats, and for all persons
employed on shore by shipping and fishing undertakings.
3.—Administration.
Insurance is administered by an autonomous fund called the
Seamen's Pension Institution, which is under the supervision of the
National Labour Council. The Institution is managed by a chairman
and an administrative committee. The chairman, who must be an
expert in social policy, is appointed by the Minister of Labour, Industry
and Commerce. The administrative committee consists of 12 members.
of whom six are elected by the employers and six by the insured
persons.
1
I n conformity with t h e Constitution and with Decree No. 159 of 30 December
1935, t h e undertakings, t h e insured a n d the Federal Government will each beai
one-third of the cost of insurance.

BEAZIL

4.—Financial Resources.
(a) Resources of accident insurance.
The accident insurance fund is fed by contributions payable by
the employers and amounting to 2 | per cent, of the total wages bill
for ships' officers and crews, 2 per cent, for persons employed in loading
and unloading vessels, and 1 per cent, for other workers employed on
shore.
(b) Resources of sickness, invalidity, old-age and widows' and orphans'
insurance.
The pension fund derives its main income from the following
sources :
1. The insured person's contribution which includes (i) 3 per cent.
of the monthly remuneration (up to 2,000 milreis), (ii) an entrance fee
equal to one month's earnings, payable in 60 monthly instalments,
and (Hi) one month's increment, payable in a lump sum, whenever
the remuneration is raised ;
2. Discount of 1 | per cent, charged on all invalidity and old-age
pensions ;
3. The annual contribution of the undertaking, equal to 1 \ per cent.
of the gross receipts but not less than the total proceeds of the basic
contributions paid by the insured persons ;
4. A welfare tax of 2 per cent, which is added to the prices paid by
the public for services rendered by shipping companies (in the case of
fishing undertakings, this tax is replaced by a supplementary employer's
contribution of 3 per cent, of the wages bill) ;
5. Interest on accumulated capital.

A.—ACCIDENT

INSURANCE

Accident insurance covers industrial accidents as defined by
Decree No. 3724 of 15 January 1919, and the obligations which the
Commercial Code imposes on shipowners with regard to the payment
of wages and medical attendance. Permanent total incapacity and
death are, however, covered exclusively by sickness, invalidity,
old-age and widows' and orphans' insurance even in case of industrial
accidents.
Accident insurance therefore only makes provision for benefits in
kind and cash benefits in cases of temporary incapacity and permanent
partial incapacity laid down in Decree No. 3724 (see above : Workmen's
Compensation) or in the Commercial Code.
Article 560 of the Commercial Code stipulates that a member of
the crew who falls ill during the voyage on account of service on
board ship is entitled to continue to receive his usual wages and the
necessary treatment at the expense of the ship.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
B.—SICKNESS, INVALIDITY, OLD-AGE AND WIDOWS' AND
ORPHANS' INSURANCE

(a) Definition of the risks covered.
1. The only benefit granted in case of sickness is benefit in kind,
this being granted also to members of the insured person's family,
and to pensioners.
2. In case of invalidity, a pension is granted to every insured
person who is unable to discharge the duties of his post or any other
post to which equal remuneration is attached and which is compatible
with his normal activity or mental capacity.
3. An old-age pension is granted to every insured person from the
age of 55 who has completed 30 years' service in an undertaking hable
to insurance.
4. On the death of an insured person, a pension or a lump sum is
paid to the widow (invalid widower), male children under 18 years of
age or invalid male children, unmarried female children, or, in the
absence of such dependants, to the widowed mother, invalid father,
unmarried sisters or invalid brothers, provided in the case of the latter
classes of survivors that they were wholly dependent on the deceased
person.
(b) Benefits in kind.
Benefits in kind include medical assistance and hospital treatment
(30 days) ; expenditure for such benefits may not exceed 8 per cent.
of the income of the preceding financial year. Medicines are supplied
at cost price.
(c) Cash benefits.
1. Pending the adoption of definitive methods for assessing pensions,
the full invalidity pension amounts to 70 per cent, of the basic wage
received during the three previous years, this pension being payable
if the insured person has completed 30 years' service in an undertaking
hable to insurance, or 255 months' service on board a Brazilian vessel.
The pension undergoes a proportionate reduction when these periods
have not been completed. Every pension is subject to a discount of
1£ per cent.
2. The allocation of an old-age pension is conditional on the
completion of a qualifying period of five contribution years in insurance.
The method of assessing pensions has not yet been fixed. The Minister
of Labour, Industry and Commerce must appoint a committee of
three experts who will propose an assessment scheme based on the
results of the first three years' working of the system. Nevertheless,
the pension may never be more than 2,000 milreis or less than
200 milreis a month.
3. The allocation of survivors' pensions is conditional on the
completion of five years' service in an undertaking hable to insurance
or 43 months' service on board a Brazilian vessel. The joint pension
payable to the whole body of survivors is fixed at 50 per cent, of the

BBAZrL

pension which the deceased was receiving or which he could have
claimed at the time of his death. If the minimum, period of service
has not been completed when the risk materialises, the survivors are
entitled to the refund of the deceased person's contributions ' plus
compound interest at the rate of 4 per cent, per annum.
6.—Statistics.
No statistics are available for 1933, as by the end of that year the
system had not yet come into operation.

THIRD PART
HOLIDAYS W I T H PAY
1.—Regulations.
In virtue of powers conferred on the Head of the Provisional
Oovemment by the Decree of 11 November 1930, holidays with pay
were introduced by the Decree of 18 January 1934 for industrial
workers belonging to a trade union.
The right to annual holidays with pay was extended to salaried
employees by the Decree of 19 August 1933.
2.—Beneficiaries.
The regulations of 18 January 1934 cover all trade unionists
employed at monthly, fortnightly, daily or hourly rates or on
commission in industrial establishments, newspaper printing offices,
communication and land or air transport undertakings, and in the
public services, and to staff employed at piece rates and subject to a
time-table or supervision. The regulations also apply to all persons
employed in services attached to industrial or commercial establishments
such as small offices, laboratories and other similar workplaces.
According to the Decree of 19 August 1933, salaried employees
are deemed to be persons who are employed in commercial establishments, banks and private relief institutions, and in commercial
sections of industrial establishments at monthly, fortnightly, weekly,
daily or hourly rates, provided that they are employed by only one
undertaking and are subject to a time-table or supervision.
3.—Conditions for granting Holidays.
The right to a holiday with pay is acquired after one year of
uninterrupted service in the same undertaking or establishment.

INTERNATIONAL SURVEY OF SOCIAL SEKVICES, 1 9 3 3

4.—Length of Holidays.
For workers who are members of a trade union, the length of the
holiday period is fixed as follows :
more t h a n 150 b u t less than 200 working days ...
„
„
200 „
„ „
250
„
„
„
„ 250 working days
...
...
...

...

7 days
11 „
15 „

All accumulation of holidays is forbidden.
For salaried employees, the length of the holiday period is fixed
uniformly at 15 days a year. The accumulation of holidays is also
forbidden.
5.—Rates of Remuneration daring Holidays.
During the holiday period the worker is entitled to his usual wages.
For salaried employees, the sum payable during the holidays amounts
to 15 days' wages for employees paid by the day and to half a month's
salary for those paid by the month.
No statistics are available for 1933.

CZECHOSLOVAKIA
SUMMARY
FIRST PART :

Statistics of Population

SECOND PART : Social Insurance

I.—Workmen's Compensation
II.—Sickness Insurance
III.—Invalidity, Old-Age and Widows' and
Orphans' Insurance
IV.—Subsidised Benefit Schemes for Staff of
State Railways
V.—Voluntary Unemployment Insurance
THIRD PART :

Social Assistance

I.—Non-Contributory Old-Age Pensions
IL—Poor Relief
III.—Assistance for Young Persons, Mothers
and Infants
rv.—Sickness Benefit paid by Employers
FOURTH P A R T :

Housing

FIFTH P A R T :

Family Allowances

SIXTH PART :

Holidays with Pay

a 14641

...

...
...

FIRST PART

STATISTICS OF POPULATIO
CENSUS OF 1 DECEMBER

1930

GAINFULLY .OCCUPIED POPULATION, CLASSIFIED BY OCCUPATIONAL G

Occupational groups

Independent
persons 1

A g r i c u l t u r e , f o r e s t r y , fishing . . .
Mining and metallurgy
Industry
Commerce and banking
Transport
Public administration...
Liberal professions
Army
I n d e p e n d e n t domestic service
D o m e s t i c service (in households)
or
unemployed
domestic servants ...
Other occupations a n d occupations not stated

879,406
55
323,852
202,171
15,675

Gainfully occupied population3
Total population

1,450,236

Independent
persons
(nonowners)
7,591
4
2,083
7,213
89
7
114

Salaried
employees

Workers
and
subordinate
staff

—
—

12,846
9,858
108,473
83,775
57,915
60,913
132,463
9,517
115

—

210,955

—

42,363

17,101

475,875

—

28,987

498,702
126,568
1,669,482
188,262
210,613
53,702
57,473
154,204
78,300

3,290,624

1
" Independent persons " include employers and persons working on their own account who are them
tenant-farmers, they are classified under " independent persons (non-owners) ".
1
Unskilled workers.
3
Excluding persons of independent means, pensioners, retired persons, housewives, students and pu
receiving assistance and sick persons. Unemployed persons arc included in their occupational group.

CZECHOSLOVAKIA

SECOND PART

SOCIAL INSURANCE
I.—Workmen's Compensation
A\—WORKMEN'S

COMPENSATION IN BOHEMIA, MORAVIA AND SILESIA

1.—Legal Basis.
Compulsory insurance against industrial accidents in Bohemia,
Moravia-and Silesia and in the district of Hultschin is governed by the
old Austrian Act of 28 December 1887 (Collection of Laws, No. 1,
1888), as amended by the old Austrian Act of 20 July 1894 (No. 168),
and by the Acts of 10 April 1919 and 12 August 1921 (Collection of
Czechoslovak Laws, No. 207, 1919, and No. 300, 1921).
By the Act of 1 June 1932 (Collection of Laws, No. 99), which came
into force on 1 July of the same year, the occupational diseases
mentioned in the hst annexed to thé Act (see 5 below) were brought
within the scope of the accident insurance scheme.
2.—Scope.
Insurance is compulsory, irrespective of age, sex and nationality,
for workers and apprentices employed in :
(a) factories, iron works, foundries, mineral mines not worked under
concession, workyards, quarries, smelting of ores under concession,
and undertakings for the production of mineral wax and asphalt;
(b) industrial undertakings carrying out building operations and works
connected with house-building; (c) industrial undertakings manufacturing or using explosive materials; (d) industrial agricultural and
forestry. undertakings, using boilers or machines worked by natural
or animal power ; (e) undertakings engaged in the transport of persona
and goods by land, river or sea ; (/) dredging operations ; (g) industrial
undertakings engaged in the cleaning of streets and buildings, canals
and chimneys; (h) industrial undertakings for cellarage and storage
and wood- and coal-depôts; (i) permanent theatrical undertakings;
(j) industrial undertakings engaged in stone-cutting and metal forging.
i The following undertakings are excluded from the scope of
insurance :
; (a) undertakings temporarily employing machinery not forming
part of their plant; (6) the construction of dwelling houses and
agricultural buildings in rural areas, provided that only the builder,
the members of his family and other persons living in the same commune, who are themselves not builders by trade, are employed on
such work.
3.—Administration.
The insurance scheme is administered by two territorial institutions,
one with headquarters at Prague, the other at Brno. The managing
committee of each institution is composed of equal numbers of
employers' representatives, insured persons' representatives, and
persons acquainted with the economic situation of the district and
appointed by the Minister of Social Welfare. These institutions are
subject to State supervision.
F 2

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The money required to cover the cost of benefits, administrative
expenses and the accumulation of a reserve fund is derived from
contributions payable by the employers. The scheme is based on the
annual assessment of the capital value of pensions.
The contribution of each employer is fixed according to the
coefficient of risk of each class of undertaking and the aggregate wages
earned by the insured workers. In assessing contributions, no account
is taken of wages in excess of 12,000 Kc. per year per worker.
5.—Benefits.
Insurance covers accidents occurring in the undertaking or
establishment, as well as accidents due to the performance of domestic
or other work outside the insured occupation when such work is
carried out at the employer's orders or on his behalf; insurance also
covers accidents occurring to workers between their domicile and
place of work, provided that the insured person has not stopped on the
way for his own personal affairs or for other reasons having no
connection with his work.
Persons suffering from the diseases mentioned in the list annexed
to the Act of 1 June 1932 are entitled, when they have contracted
those diseases in the undertakings also mentioned in the list, to
compensation on the same conditions as apply to occupational
accidents.
Serial
number
1
2
3
4
5
6

7
8
0
10
11
12

Occupational disease

Undertakings Insured against
accidents

Diseases caused by lead and its
compounds.
Diseases caused by phosphorus
and its compounds.
Diseases caused by mercury and
its compounds.
Diseases caused by arsenic and
its compounds.
Diseases caused by manganese
and its compounds.
Diseases caused by benzene and
its homologues or by nitro and
amido derivatives of the aromatic series.
Diseases caused by carbon bisulphide.
Diseases caused by sulphuretted
hydrogen.
Diseases by gases used in war, i.e.,
phosgene, thio, etc.
Diseases caused by carbon monoxide.
Diseases caused by hydrocyanic
acid or its derivatives, such as
calcium cyanamide.
Diseases caused by prolonged
exposure to X-rays or to rays
or other emanations of radium.

For serial numbers 1-13 :
All undertakings in which t h e
substances specified in the
second column are manufactured, worked up or used or
are found as by-products or
in any other form.

, CZECHOSLOVAKIA

Serial
number

Occupational disease

Serious forms of eczema which
are difficult to cure (cancer),
caused by soot, paraffin, tar,
creosote, anthracene, pitch and
similar substances, and also
the sequelae of such forms of
eczema (cancer).
Cancer of the lungs caused by
radium rays and emanations.

Anthrax ...

Infectious diseases

Glanders

Diseases of the muscles, bones
and joints of employees who
use pneumatic drills, hammers,
rivetting tools and other
similar appliances.
Ankylostomiasis (miners' hookworm disease).
Diseases of the
respiratory
system caused by the injurious
effects of basic slag.
Serious pneumoconiosis caused
by quartz or iron dust.
If serious pneumoconiosis
occurs simultaneously with
pulmonary tuberculosis, t h e
tuberculosis shall for the purposes of compensation be
deemed to be a disease caused
by dust.
Diseases caused by chromium
compounds.
Deafness or hardness of hearing
approximating to deafness,
caused by noise and vibrations.
Serious cataract ...

19
20
21

22
23
24
25

Serious and complicated forms of
nystagmus.

Undertakings insured against
accidents

Uranium mines and factories for
the manufacture of uranium
pigments, radium and radium
preparations (e.g. Jáchymov).
(o) Undertakings in which animals are kept or slaughtered
or in which carcasses or
waste products of animals
liable to contract anthrax
are used or destroyed.
(6) Undertakings in which wool,
hair skins, hides, horse-hair
or bristles are worked u p or
in which trade in these
materials is carried on or by
which they are transported.
Institutions for the care of the
sick.
Undertakings in which insured
persons are exposed to risk of
this disease.
Undertakings in which such
pneumatic machinery or apparatus is used.
Mining undertakings.
Undertakings in which basic
slag is worked up or transported.
(a) Undertakings for quarrying,
roughworking and finishing
sandstone ;
(6) chinaware undertakings ;
(c) undertakings
for
metal
grinding ;
(ci) mining undertakings in which
the work is usually in hard
quartz.
Undertakings in which these
compounds are used.
Undertakings for metal working
or finishing.
Glass works, iron works
foundries.
Mining undertakings.

and

86.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(a) Benefits in kind.
Victims of accidents are entitled to medical treatment and drugs.
These benefits are provided by the sickness insurance scheme, the
cost being borne by accident insurance as from the fifth week following
the accident.
(b) Benefits in case of incapacity.
1. In case of total incapacity for work, the insured person is ;
entitled to a pension equal to two-thirds of his annual wage. This;
wage is calculated by multiplying the average daily earnings during,
the year by 300. Ño account is taken of any wages in excess of'
12,000 Kc. a year; the maximum insurable wage for apprentices.
varies from a minimum of 2,250 Kc. to a maximum of 5,400 Kc. If
the victim of an accident requires the constant help of another person,
the pension may be increased by 50 per cent.
;
2. In case of partial incapacity for work, the pension is fixed at a:
fraction of the total pension corresponding to the loss of ;working!
capacity.
(c) Benefits in case of death.
Survivors' pensions are paid to the widow, children and other near
relatives of the deceased.
1. The pension of the widow (or incapacitated widower) ^mounts
to 20 per cent, of the basic wage of the deceased. In case of remarriage;
the widow's pension is commuted for a lump sum equal to three times
the annual pension.
2. Each child under 15 years left by the deceased is entitled to a
pension of 15 per cent, of his wage, and orphans bereft of both parents
to a pension of 20 per cent. The pensión is payable after 15 years of.
age to children who, as a result of physical or mental infirmity, are
entirely incapable of supporting themselves.
The combined pensions of the widow and children may not exceed;
two-thirds of the annual wage of the deceased.
Benefits are granted by the insurance institution. Disputes are
referred to an arbitration court. By virtue of the Act of 2 July 1934
(Collection of Laws, No. 173) an appeal lies in certain circuûistances1
against decisions given by the court.
6.—Statistics.
Average number of insured persons in 1933 :
(o) Prague institution
(f>) Brno institution
"

.. !
...

770,000
332,000

. ."

1,102,000

•

CZECHOSLOVAKIA
INCOME AND E X P E N D I T U R E F O B

1933

(in thousands of K8.)
INCOME

EXPENDITURE

Balance of t h e fund at end of
previous year
1,544,381
Employers' contributions ..
140,065
Income from capital
77,368
Miscellaneous
13,323
Deficit of Brno institution..
10,373
Total

1,785,510

Benefits in cash and in
kind
167,901
Administrative expenses ...
27,570
Miscellaneous
...
...
74,174
Balance of fund a t end of
year
1,503,945
Surplus of Prague institution
11,920
1,785,510
Total

BALANCE SHEET AT 31 D E C E M B E R

1933

(in thousands of Kö.)
ASSETS

EXPENDITURE

Cash a t bank
Deposits
Securities
Real property
Loans
Outstanding contributions...
Sundry debtors
Suspense accounts ...
Loss on securities to be
written off
Total

B.—WORKMEN'S

2,015
61,386
762,429
62,173
480,393
118,898
5,723
100,587
30,302

... 1,623,906

Capital value of pensions in
course of acquisition
... 1,435,349
Creditors and funds assigned
to them
108,112
Reserves and other funds ...
68,525
Surplus of Prague institution
11,920

Total

1,623,906

C O M P E N S A T I O N I N S L O V A K I A A N D C A R P A T H I A N RXTTHENIA

There are two workmen's compensation schemes in force : a general
scheme and a special scheme for agricultural workers.
(a) Generai Scheme
1.—Legal Basis.
Compulsory insurance is governed by the old Hungarian Act
No. XIX of 1907, as amended by the Orders of 23 September 1919
(Collection of Czechoslovak Laws, No. 516), 14 July 1922 (No. 199),
and 26 May 1933 (No. 86) and by the Act of 1 June 1932 (No. 99)
concerning workmen's compensation for occupational diseases {see
under A).
2.—Scope.
Insurance is compulsory, irrespective of age, sex and nationality
for workers and apprentices employed in :
(a) mines, factories, salt works, and other industries working up
the products of mines, stone and sand quarries, gravel and clay pits,
and undertakings, establishments and works where stone or earth is
broken up or transformed; (6) the construction of roads, bridges,
railways, tunnels, water works, dams, canals, harbours, fortifications,
and systems for the transmission of water, gas and electric light and
power ; (c) establishments in which inflammable, noxious or poisonous
substances, or explosive materials or explosives are produced or

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

handled: (d) chemical, physical and pharmaceutical laboratories;
(e) slaughter-houses, butchers' and pork butchers' establishments and
ice-factories ; (/) railways, whatever the motive power employed, and
the factories and workshops, construction and maintenance work
connected therewith, as well as the postal, telegraph and telephone
services ; (g) inland navigation and the loading of ships ; (h) dredging
undertakings, work in harbours, on waterways, and all floating
operations ; (i) undertakings engaged in the forwarding, handling and
storage of goods; (j) all establishments subsidiary to agriculture,
forestry, stockbreeding and fishing; (k) public undertakings and
establishments and work for the State, the municipalities and the
communes ; (I) unions, companies, and industrial co-operative societies ;
(m) domestic service; (ri) all building undertakings and yards;
(o) undertakings employing persons detained in reformatories or
prisons ; (p) the driving of motor vehicles.
3.—Administration.
The insurance scheme is administered by the Workers' Insurance
Institute at Bratislava. The managing committee of the Institute is
composed of nine employers' representatives and nine representatives of
the insured persons.
4.—Financial Resources.
The financial resources are obtained in the same way as in Bohemia,
Moravia and Silesia (see A.4).
5.—Benefits.
Insurance covers accidents occurring during the performance of
work ordered by the employer or his representative, or in the interests
of the undertaking.
Since 1 July 1931, benefit is also payable in respect of the occupational diseases mentioned in the list annexed to the Act of 1 June 1932
(see under A.5).
With the exception of certain small details, cash benefits and
benefits in kind are on the whole similar to those provided for in
Bohemia, Moravia and Silesia (see A.5). Orphans' pensions are,
however, paid up to the age of 16 years.

6.—Statistics.
Bratislava Institution
Average number of insured persons in 1933 : 128,000.
INCOME AUD E X P E N D I T U B E F O B 1933

(in thousands of K5.)
EXPENDITUBE

INCOME

Balance of fund at end of
previous year
186,970
Employers' contributions
22,619
Income from capital
9,412
Miscellaneous...
—
1,420

Total

220,421

Benefits in cash and in kind... 20,218
Administrative expenses
4,404
Other expenses, including
allocation to reserve fund...
9,459
Balance of fund a t end of year 176,073
Surplus
10,267
Total

220,421

CZECHOSLOVAKIA
BALANCE S H E E T AT 31 D E C E M B E B

1933

(in thousands of KC.)
LIABILITIES

ASSETS

Cash at b a n k . . .
Deposits
Securities
Real property and equipment
Loans ...
Outstanding contributions ...
Sundry debtors
Suspense account
Total
1

177
33,476
42,804
10,499
41,277
35,032
27,974
11,269

Capital value of pensions in
course of acquisition
175,173
Reserves and various funds...
900
Creditors
19,989
1
Surplus
6,446

202,508

Total

202,508

Less the deficit from 1932, amounting to 3,280,000 K6.

(b) Special Scheme for Agricultural Workers
1.—Legal Basis.
The special scheme for agricultural workers is governed by the
old Hungarian Act No. XVI of 1900, as amended by the Hungarian
Acts Nos. XrV of 1902, VIII of 1912, XX of 1930, by the Czechoslovak
Orders of 23 August 1919 (Collection of Laws, No. 137) and 24 July
1920 (No. 45), and by the Act of 1 June 1932 (No. 99) concerning
workmen's compensation for occupational diseases.
2.—Scope.
The insurance fund for agricultural workers at Bratislava includes
foundation members, ordinary members and affiliated members.
Any person who pays a lump sum of at least 500 Kc. is deemed to
be a foundation member.
Ordinary members are divided into five groups. Groups I and I I
comprise all agricultural labourers, farm servants and other classes of
agricultural workers who were aged between 14 and 35 years at the
time of joining the fund. Group III includes all persons who make
provision for the payment of funeral expenses to their family in case
of their death, group IV persons who insure for the payment of an
allowance at a certain age, and group V all persons, wage earners or
others, whose main occupation is agricultural work.
Any agricultural worker may acquire the status of affiliated member
by joining the insurance fund for agricultural workers.
All agricultural workers and farm servants, whether using
agricultural machinery or not, are hable to compulsory insurance.
The employer is deemed to have satisfied the requirements of the
Act by registering his workers and servants as affiliated members of
the fund.
3.—Administration.
The insurance scheme is administered by the Agricultural Workers'
Insurance Fund in Bratislava. The management of the Fund includes
the chairman, four members elected by the general meeting, four
members elected by the local committees, and four members appointed
by the Minister of Agriculture.
The Fund is under State supervision.
A local committee is set up in each commune in which the Fund
has at least forty members.

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
Insurance is based on the accumulative system.
The income of the Fund is derived from employers' contributions,
contributions from voluntary members, a State subsidy and gifts.
The employer is required to make an annual lump-sum payment
of 15 Kc., for each worker and farm servant in his employment.
The annual contributions of ordinary members vary according to
group, and amount to 104 Kc. in group I, 52 in group II, 26 in
group III, 52 in group IV, and 100 in group V.
The State contribution amounts to 150,000 Kc. a year.
5.—Benefits.
Insurance covers accidents occurring during the performance of
work and resulting in incapacity for work or death. (For occupational
diseases see the list under A.5.)
(a) Benefits in case of incapacity.
1. If the victim of an accident is incapable of earning one-half of
the wage of an agricultural worker over a period exceeding one week,
he is entitled to a daily allowance of 5 Kc. for a maximum period of ten
weeks. If the accident occurs during work, the employer is required
to provide the victim with medical treatment and to pay to him a daily
allowance of 5 Kc. during a maximum period of ten weeks. Farm
servants continue to receive their wages in all cases and are entitled
to board and lodging, the obligation of the Fund beginning only from
the fifteenth week following the accident.
2. If incapacity for work lasts for more than 60 days, the victim is
entitled, from the beginning of the eleventh week, to a pension equal
to 2,400 Kc. a year. When a loss of earning capacity of at least 25 per
cent, continues after the first ten weeks following the accident, the
victim is entitled to a fraction of the total pension corresponding
to his loss of earning capacity.
(b) Benefits in case of death.
The family of the deceased is entitled to a lump-sum payment of
3,000 Kc. If he leaves more than two children under 14 years of age,
the allowance is increased by 500 Kc. a year for each child up to a
maximum of 5,000 Kc.
Members who have been affiliated to the fund for ten years and
who, as a result of invaHdity (even when not attributable to an
occupational accident), are no longer able to earn one-half of the annual
wages normally earned by agricultural workers of their locality are
entitled throughout the period of invalidity to a pension of 100 Kc. a
year. Members who have reached the age of 65 years and are not in
receipt of an invalidity pension are entitled to a lump-sum payment
of 500 Kc. On the death of a member who has been affiliated to the
fund, for at least five years, a lump-sum payment of 1,000 Kc. is made
to his family ; if he has been affiliated for ten years, this allowance is
increased to 1,250 Kc., and, if affiliation has lasted fifteen years, to
1,500 Kc. If the deceased worker leaves more than three children,
the widow is entitled to a special increment.

CZECHOSLOVAKIA'

. •.

H.—Sickness Insurance
A.—GENBBAL

SCHEME

1.—Legal Basis.
(a) The compulsory sickness insurance of workers is governed by
the Act of 9 October 1924 (Collection of Laws, No. 221), as amended
by the Act of 8 November 1928 (No. 184). 1
(£>) The compulsory insurance of salaried employees (non-manual
workers) is governed b y the Old Austrian Act of 30 March 1888 and
the old Hungarian Act No. X I X of 1907, as amended on several
occasions, and by the Act of 1 J u l y 1926 (Collection of Laws, No. 117).
2.—Scope.
(a) Workers' insurance.
Insurance is compulsory for every person who performs work or
renders services under a contract of employment, service or apprenticeship, a n d n o t b y way of subsidiary or casual employment. I f is
also compulsory for home workers who, while n o t running a business,
regularly exercise a trade a t the order or on behalf of one or more
employers.
Insurance is not open to employees óf the State and other territorial communities, or bodies corporate, including railway companies,
declared t o be equivalent to these, provided t h a t such employees are
entitled t o benefits equal to those granted under the Act of 8 November
1928.
Persons liable to miners' insurance (see infra, B) are likewise
excluded from sickness insurance.
(b) Salaried employees' insurance.
Insurance is compulsory for non-manual workers employed in
private undertakings. "
3.—Administration.
I n 1933, compulsory sickness- insurance was- administered
institutions of various types :
185 district institutions ;
•
65 agricultural institutions.;
17 establishment institutions ;
1 association institution;
- ' . ' 2 1 occupational guild institutions ;
6 registered friendly society institutions.

Some salaried employees are insured; with the workers' sickness
insurance institutions ; the others belong to institutions specially set
Up for t h e insurance of salaried employees.
• * As from 1 July 1934, the Act of 9 October 192a was amended by the Orders
of 15 June and 11 July 1934 (Collection of Laws, Nos. 112 and 143).

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The organs of the sickness insurance institutions are : the general
delegate meeting, the managing committee (three-quarters of which is
made up of representatives of the insured persons and one-quarter of
representatives of the employers), and a supervisory committee, of
which three-quarters of the members are employers' representatives
and one-quarter representatives of the insured persons.
The supervision of the sickness insurance institutions is entrusted
to the Central Social Insurance Institution, the general supervision of
the enforcement of the Act being left to the Ministry of Social Welfare.
4.—Financial Resources.
The money required to cover the cost of benefits, administrative
expenses and the accumulation of a reserve fund is derived from
contributions, the rate of which is fixed for each sickness insurance
institution by the Central Social Insurance Institution. 1 As a rule,
contributions must not exceed 4-8 per cent, of the average daily wage.
The insured persons are classified in ten wage classes according to
their wages (employees in fifteen classes) ; the average wage of each
class is fixed by law.
Half the insurance contribution is borne by the employer and half
by the insured person. The employer pays the whole of the insurance
contribution for workers who receive no cash wages.
5.—Benefits.
Insurance covers the risks of sickness, maternity and death.
Sickness.
Insured persons are entitled to the following benefits :
(a) free medical treatment and drugs for themselves and the
members of their family living in the same household, from the beginning of the sickness for its duration ;
(b) daily sickness benefit from the third day 2 of working incapacity for a period not exceeding one year ; the rate of benefit varies
with the wage class and is as a rule equivalent to about two-thirds of
the average daily wage.3
1
I n virtue of Orders Nos. 112 and 143 of 1934, rates of contribution which do
not exceed 5 • 5 per cent, of the daily wage are fixed by the sickness insurance
institution concerned. Higher rates may only be fixed by the Central Social
Insurance Institution.
2
Under Orders Nos. 112 and 143 of 1934, as from the fourth day.
3
Under Orders Nos. 112 and 143 of 1934, the rate of sickness benefit payable
by insurance institutions which have fixed t h e rate of contribution at more t h a n
5 per cent, of the average daily wage, was reduced to one-half of t h a t wage.
This rate of benefit is payable for t h e first 14 days by institutions which receive
contributions of more t h a n 5 per cent., b u t not more t h a n 5 • 5 per cent, of t h e
average daily wage, and for t h e first 90 days by institutions the contribution to
which is more than 5-S per cent.

CZECHOSLOVAKIA

Maternity.
Maternity benefits are as follows :
(a) obstetrical treatment (free services of a midwife and, if necessary, medical treatment) for insured women and wives of insured
persons ;
(b) daily benefit, equal to the daily sickness benefit for insured
women, for six weeks before and six weeks after confinement;
(c) a nursing bonus, equal to half the daily sickness benefit, for
mothers who nurse their children themselves, up to the end of the
twelfth week after confinement.
Death.
In case of the death of an insured person, funeral benefit is granted
equal to thirty times the daily wage of the insured person, with a
minimum of 150 Kè.
In case of the death of a member of the family, the insured person
receives an allowance fixed at 60, 180 or 250 Kc., respectively, according as the deceased person was under 2, under 14 or over 14 years
of age.
Sickness benefit and medical treatment may be replaced by treatment in hospital with full maintenance ; during treatment in hospital,
the sick person is entitled on behalf of his family to an allowance equal
to half the sickness benefit.

6.—Statistics.
(a) Sickness Insurance Institutions covered by the Act of
9 October 1924
Average number of insured persons in 1933
(including 175,746 salaried employees).

2,063,396

INCOME AND E X P E N D I T U R E F O E

1933

(in thousands of Ki.)
EXPENDITURE

INCOME

Contributions of insured per
sons and their employe rs ..
Income from capital
Miscellaneous
Excess of expenditure

736,896
23,950
84,640
6,628

Total

852,114

Cash benefits
Benefits in kind
Administrative expenses
Miscellaneous

Total

287,888
337,191
179,543
47,492

852,114

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in thousands of Kfi.)
ASSETS

LIABILITIES

Cash a t b a n k . . .
Securities
...
—
Deposits
...
...
Real property
Mortgage loans
Employers' contributions out
standing
Furniture and fittings
Miscellaneous

6,857
20,889
48,320
257,260
4,093

...

782,694

Total

346,961
38,554
59,760

Benefits due but not paid
"P
Sundry creditors
...
...
Invalidity and old-age pension contributions not paid
to the Central Institution
Reserve fund...

Total

115,721
216,134
191,881
258,958

782,694

(6) Sickness Insurance Institutions for Salaried Employees
Average number of insured persons in 1933
...
...
(including 36,949 pensioners under Act No. 26 of 1929).
INCOME AND E X P E N D I T U B E FOR

...

237.1741

1933

(in thousands of Kö.)
INCOME

EXPENDITUBE

Contributions of insured persons and their employers... 147,868
Income from capital
...
1,976
Miscellaneous
...
...
4,551
Total

...

Cash benefits ...
Benefits in kind
Administrative expenses
Miscellaneous
Excess of income

154,395

Total

BALANCE S H E E T AT 31 D E C E M B E B

.
.
.

37,356
88,030
16,886
6,231
5,892

. 154,395

1933

(in thousands of Kè.)
ASSETS

LIABILITIES

Cash a t bank
Securities
Deposits
...
Real property
Mortgage loans
Employers' contributions out
standing. ...
Furniture and fittings
Miscellaneous

542
7,982
26,505
28,008
2,870

Total

100,143

Benefits due but not paid up
Sundry creditors
Reserve fund...

27,205
22,710
50,228

10,442
7,029
16,765
Total

100,143

• In 1933,175,740 salaried employees were covered by insurance institutions operating under
the Act of 9 October 1924. (See (a) above.)
B.—SPÉCIAL SCHEME FOB MINERS

1.—Legal Basis.
The compulsory sickness insurance scheme for miners is governed
by the old Austrian Act of 30 March 1888, the old Hungarian Act
No. XIX of 1907, and the Act of 11 July 1922 (Collection of Czechoslovak Laws, No. 242).
!

CZECHOSLOVAKIA

2.—Scope.
Insurance is compulsory for all persons employed in mining undertakings, irrespective of age, sex and nationality.
3.—Administration.
The insurance scheme is administered by eight benefit societies,
one for the area of each district mining authority. The organs of the
district societies are the general meeting, the managing committee
and the supervisory committee, all of which are composed of representatives elected by the insured persons and their employers.
4.—Financial Resources.
The money required to cover the cost of benefits, administrative
expenses and the accumulation of a reserve fund is derived from contributions payable in equal parts by the insured persons and their
employers. The weekly contribution must not exceed four-tenths of
the average daily wage of the wage class to which the miner belongs ;
but when necessary it may be increased up to a maximum of 8 per
cent, of the average daily wage by authorisation of the Minister of
Public Works.
5.—Benefits.
Insurance covers the risks of sickness, maternity and death.
Sickness.
Insured persons are entitled to the following benefits :
(a) Free medical treatment and drugs for themselves and, when
their income does not exceed 20,000 Kc. a year, also for the members
of their family living in the same household •;
(b) daily sickness benefit, fixed in accordance with the wage class
to which the insured person belongs, and generally equal to two-thirds
of the average daily wage, for a maximum period of one year.
Maternity.
Maternity benefits are as follows :
(a) Obstetrical treatment (the free services of a midwife and, if
necesssary, of a doctor) for insured women and wives of insured persons ;
(b) daily cash benefit, equal to the sickness benefit for insured
women, for six weeks before and six weeks after confinement ;
(c) a nursing bonus, equal to half the daily sickness benefit, for
mothers who nurse their children themselves, up to the end of the
twelfth week after confinement.
Death.
In case of the death of an insured person, funeral benefit is granted
equal to thirty times the average daily wage, with a minimum of
150 Kc.
In case of the death of a member of the family, the insured person
receives an allowance for funeral expenses amounting to 60, 180 or
250 Kc., respectively, according as the deceased person was under 2,
under 14, or over 14 years of age.

9(5

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
Average number of insured persons in 1933

108,980

INCOME AND E X P E N D I T U R E FOP. 1933

(in thousands of Kò.)
INCOME

Insured persons' contributions
Employers' contributions ...
Pensioned miners' contributions
Income from capital...
Miscellaneous
Total

EXPENDITURE

37,875
37,874
5,495
2,137
5,501
88,882

Cash benefits
Benefits in kind
...
...
Benefits to pensioned miners
Benefits due in respect of
earlier years
...
...
Administrative expenses
...
Miscellaneous
...
...
Excess of income
...
...
Total
...

BALANCE S H E E T AT 31 D E C E M B E R

32,552
32,872
6,113
22
11,034
6,135
154
88,882

1933

(in thousands of K8.)
ASSETS

Cash a t b a n k . . .
Securities
Deposits
Real property
Mortgage loans
Outstanding contributions ...
Furniture and fittings
Miscellaneous
Total

C.—SICKNESS

LIABILITIES

605
14,507
19,303
42,099
615
6,346
3,786
1,970
89,231

Benefits not yet paid u p
Sundry creditors
Reserve f u n d . . .

Total

.
.

4,460
15,529
69,242

89,231

INSURANCE FOB POSTAL, TELEGRAPH AND T E L E P H O N E
STAFF

1.—Legal Basis.
Act of 15 October 1925 concerning sickness insurance for public
servants, para. 12 (Collection of Laws, No. 221).
2.—Scope.
Insurance is compulsory for postal, telegraph and telephone staff,
irrespective of age, sex or the amount of salary or wages.
3.—Administration.
The scheme is administered by a special medical aid fund for
postal, telegraph and telephone staff.
4.—Financial Resources.
The financial resources needed for paying benefits and building
up a reserve fund are derived from contributions shared equally by
the insured persons and the employers. The joint contribution is
equal to 2 per cent, of salary or wages, with a minimum of 16 Kc.
and a maximum of 50 Kc. per month.
In some cases the sick person has to share the cost of medical aid.

CZECHOSLOVAKIA

5.—Benefits.
The scheme covers the risks of sickness and maternity.
The insured person is entitled to medical aid, including obstetrical
aid and attendance by a midwife, as well as medical and other therapeutic supplies. Members of the insured person's family are also
entitled to receive medical treatment.
The Medical Aid Fund may grant facilities for a cure or treatment
free of charge in a hospital or other curative establishment.
6.—Statistics.
Average number of insured persons in 1933 : 62,516.
INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of K6.)
EXPENDITURE

INCOME

Balance of the fund at end of
previous year
Insured persons' contribu
tions
Employers' contributions ..
Income from capital...
Other income...
Total

7,440
9,241
9,241
616
2,915

Benefits
Administrative expenses
Other expenses
Balance of fund a t end of 1933

29,453

Total

BALANCE S H E E T AT 31 D E C E M B E R

19,480
1,325
1,591
7,057

29,453

1933

(in thousaiidsofKO.)
ASSETS

LIABILITIES

Deposits
Securities
Real property
Outstanding contributions ..
Sundry debtors
Total

2,255
8,684
116
618
787

Sundry creditors
Reserve fund ...

5,403
7,057

12,460

Total

12,460

ED.—Invalidity, Oiä-Age and Widows' and Orphans' Insurance
A.—WORKERS'

SCHEME

1.—Legal Basis.
Workers' invalidity, old-age and widows' and orphans' insurance
is governed by the Act of 9 October 1924 (Collection of Laws, No. 221),
as amended by the Act of 8 November 1928 (No. 184).l
2.—Scope.
Insurance is compulsory for all persons in the Czechoslovak Republic
who perform work or render services under a contract of work, service
or apprenticeship and not by Way of subsidiary or casual employment.
Home workers are also liable to compulsory insurance.
1
As from 1 July 1934, the Act of 9 October 1924 was amended by the Order
of 15 J u n e and 11 July 1934 (Collection of Laws, Nos. 112 and 143).

x G 14641

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1933

Exemption from the workers' insurance scheme is granted to all
persons who are covered by a special pension scheme or by a scheme
of retiring pensions at least equivalent to the workers' scheme, viz. :
(a) Persons liable to salaried employees', invalidity, old-age and
widows' and orphans' pension insurance (see infra, B) ;
(6) Persons liable to miners' invalidity, old-age and widows' and
orphans' pension insurance (see infra, C) ;
(c) Salaried employees and other persons working for the State,
provinces, districts, communes and certain bodies corporate.
Young persons under 16 years of age and persons who have completed their sixtieth year before beginning to perform work or services
liable to insurance are also excluded from the workers' insurance
scheme.1
3.—Administration.

The insurance scheme is administered by the Central Social Insurance Institution at Prague, which is alone competent to deal with
workers' invalidity, old-age and widows' and orphans' insurance.
The chairman of the Institution is appointed by the Head of the
State. The principal organ of the Institution is the committee, which
is composed of 40 members, including 12 representatives of the insured
persons, 12 representatives of the employers and 16 social insurance
experts appointed by the Government. The governing body of the
Institution comprises ten members, including three elected by the
insured persons' group of the committee, three elected by the employers' group, and four by the experts' group. The executive organ
is the directorate, which is composed of three members.
4.—Financial Resources.
The resources are derived from contributions payable in equal
parts by the insured persons and their employers, except in the case
of insured persons who do not receive cash wages and for whom the
employer is required to pay the whole contribution. Insured persons
are divided into five wage classes, the weekly contribution for the
different classes varying between 2-60 and 8-40 Kc. ; according to
the class in question this contribution represents between 4-1 and
6-5 per cent, of the average Wage of the class.2
The State pays a subsidy to current pensions, which varies in
accordance with the category to which the beneficiary belongs.
5.—Benefits.
The insurance scheme makes provision for invalidity pensions,
old-age pensions, and widows' and orphans' pensions ; in addition,
dowries are granted to insured women who marry and lump-sum
payments aré made to survivors of insured persons who die before
acquiring the right to a pension.
1
For the period from 1 J u l y 1934 to 30 June 1936, insurance is not compulsory for agricultural workers who are not in permanent employment.
2
For the period from 1 July 1934 to 30 J u n e 1936, the contribution payable
by agricultural workers in the first two wage categories is reduced; the deficit
is to be covered by t h e State.

CZECHOSLOVAKIA

The right to a pension is subject to the payment of 100 weekly
contributions, including at least 13 under compulsory insurance.
(a) An invalidity pension is granted to an insured person who, as
the result of sickness or infirmity not incurred intentionaUy, is incapable
of earning, in employment suited to his strength, ability, training and
previous occupation, at least one-third of the amount usually earned
by workers of the same class with similar training.
The pension includes a basic amount of 550 Kc. a year, plus an
increment fixed in proportion to the number of weekly contributions
paid by or on behalf of the insured person, and varying from 0-60 to
1-75 Kc. (or about one-fifth of the insurance contributions paid),
plus a supplement equal to one-tenth of the pension for each dependent
child under 17 years of age. When in the preceding financial year the
income of a pensioner from other sources than his pension has not
exceeded the minimum amount (7,000 Kc. a year) exempted from
income tax, the pensioner is entitled to a State subsidy of 500 Kc.
a year.1
(b) An old-age pension is granted to an insured person who has
attained the age of 65 years and is no longer engaged in any work
or service liable to insurance, or who earns from such work or service
less than one-half of the amount usually earned by a worker in the
same district with similar training in the same occupation.
The old-age pension is assessed in the same way as the invalidity
pension.
(c) A widow s pension is granted to the widow of a pensioner or
person having completed the qualifying period, from the age of
65 years2 or at an earlier age if she becomes incapacitated ; a widow is
entitled to a pension at an earlier age even if she is capable of working
provided that she maintains at least two children under 17 years of age.
An incapacitated widower who was mainly or wholly maintained by
his deceased wife out of her earnings is also entitled to a pension. A
widow's (or widower's) pension amounts to one-half of the pension to
which the insured person was entitled or would have been entitled at
the time of his death. The State subsidy to the widow's (or widower's)
pension amounts to 250 Kc. a year.
Invalidity, old-age and widows' pensions may be increased by
50 per cent, for persons who require the constant assistance of another.
(d) An orphan's pension is granted to children under 17 years
of age of a deceased pensioner or insured person having completed
the qualifying period. The pension is equal to one-fifth of the pension
of the deceased, but is increased to two-fifths in the case of children
who have lost both parents. The State subsidy is 100 Kc. a year,
which is increased to 200 Kc. a year for a child who has lost both
parents.
1
Since 1 July 1934, every pensioner who was born before 1 January 1899
and h a d completed the qualifying period of 100 contribution-weeks before 31
December 1931, receives a supplement amounting to one-third of the average
yearly increment to which he would have been entitled had he been insured
from t h e age of 27 years until the date when the insurance scheme came into
force (1 J u l y 1926).
» Under Orders No. 112 and No. 143 of 1934, from the age of 60 years.

G 2

100

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Insured women who marry after completing the qualifying period
of 100 weeks are entitled to a dowry, which varies between 400 and
600 Kc. according to the wage class to which they belong.
The survivors of an insured person who at the time of his death
had not completed the qualifying period are entitled to a lump sum,
which varies from 550 to 750 Kc. according to his wage class.
In addition to cash benefits, the Central Institution grants treatment with a view to averting invalidity which might result from the
sickness of the insured person, his wife or his widow.
6.—Statistics.
Number of insured persons in 1933

...

1,712,939

INCOME AND E X P S-DITURE FOB 1933
(in thous idsofKa.)
INCOME
EXPENDITURE

Brought forward from previous financial year
... 4,154,839
Contributions
...
...
445,664
Capital representing rights
in course of acquisition
taken over by the Fund ...
4,708
Income from capital
... 226,939
Miscellaneous
50,602

Total

: 4,882,752

Invalidity pensions...
...
59,736
Old-age pensions ...
...
9,344
Widows' pensions ...
...
5,737
Orphans' pensions ...
...
5,485
Advances on State subsidies
43,841
Other cash benefits
...
27,270
Curative and
preventive
treatment
30.008
Capital representing rights
in course of acquisition
transferred to other institutions
...
...
...
5,869
Administrative expenses ...
51,383
Loss of exchange on capital
41,235
Depreciation
...
...
11,413
Interest
3,037
Other expenses
...
...
1,500
Capital
4,586,874
Total
4,882,752

BALANCE S H E E T AT 31 D E C E M B E R

1933

(in thousai ids of KC.)
ASSETS

LIABILITIES

103
Cash at bank
Bank deposits
203,020
Securities
1,162,333
Loans on securities...
67,590
Various loans
1,463,461
Mortgage loans
787,661
Improvement loans.
51,280
Loans granted through othei
institutions
575,687
Real property
25,788
Furniture and fittings
2,346
Outstanding contributions..
207,505
Miscellaneous
163,631
Total

4,710,405

Special reserve fund
...
1,760
Donations ...
...
...
43,315
Reserve fund for depreciation
of securities
...
...
12,404
Reserve fund for pensions to
officials of the Central Institution
12,626
Miscellaneous
...
...
53,426
Capital
4,586,874

Total

4,710,405

101

CZECHOSLOVAKIA

B.—SALABIED

EMPLOYEES'

SCHEME

1.—Legal Basis.
The invalidity, old-age and widows' and orphans' pension insurance
scheme for salaried employees is governed by the Act of 21 February
1929 (Collection of Laws, No. 26), supplemented by the Act of 14 July
1931 (Collection of Laws, No. 125).1
2.—Scope.
Insurance is compulsory for :
(a) All persons employed under a contract of employment or
service on work of an essentially intellectual character ;
(6) salaried employees working in offices with the exception
of those engaged in cleaning, manifolding documents by
purely mechanical processes, or other work which cannot be
deemed to be office work ;
(c) all persons employed in business houses on commercial work
or on other work of a higher order, as well as all persons
employed on non-commercial work in undertakings and establishments mentioned in the Act (undertakings coming under
the Industrial Code, credit establishments, savings banks,
publishers' offices, barristers' and notaries' offices, etc.) ;
(d) persons entrusted with supervisory duties in undertakings of
every sort, or responsible for storage of goods ;
(e) permanent representatives of undertakings of every description.
The insurance scheme does not apply to young persons under
16 years of age or to persons whose employment in an occupation
entailing liability to insurance is of a subsidiary nature.
Salaried employees of the State, provinces, communes and other
bodies corporate are excluded from insurance when their service
regulations guarantee them benefits at least equal to those provided
under the Act of 21 February 1929.
3.—Administration.
The insurance scheme is administered by the General Pension
Institution at Prague and by a number of so-called substitute institutions, set up on the lines of establishment funds. All salaried employees
who are not affiliated to a substitute institution automatically belong
to the General Institution.
The principal administrative organs of the General Institution are
the board and the governing body, both of which comprise equal
numbers of employee members and employer members and a number
of social insurance experts appointed by the Government. The
chairman of the Institution is appointed by the Head of the State.
The executive organ is the directorate of three members.
4.—Financial Resources.
The resources of the insurance scheme are derived from contributions, which are payable in equal parts by salaried employees and
1
The Act of 21 February 1929 was amended by the Act of 12 J u n e 1934, and
the amendments came into force on 1 July 1934.

102

INTERNATIONAL SUBVEY OF SOCIAL SEBVICES, 1 9 3 3

their employers. The insured persons are divided into eleven salary
classes, in accordance with their annual remuneration. The joint
contribution of the employer and the employee varies between 12 and
250 Kc. a month, according .to salary class.
The State does not contribute towards the Cost of insurance except
in respect of the war service of Czechoslovak pensioners.
... ¡
In the substitute institutions, the total amount of income from
contributions must be 20 per cent, higher than that which would be
required in case of affiliation to the General Institution.
A monthly contribution, varying from 2 to 10. Kc. according to
salary class, is payable by insured women and their employers to
cover costs incurred under the Act of 14 July 1931.
5.—Benefits.
The insurance scheme makes provision for the payment of invalidity
pensions, old-age pensions, widows' pensions, orphans' pensions and
pensions to relatives in the ascending line. Lump-sum payments are
also granted to insured women in the event of marriage.
The right to a pension is conditional on completion of a qualifying
period of 60 contribution-months. Survivors of an insured person
who dies before the completion of the necessary qualifying period
receive a lump-sum payment instead of a pension.
(a) An invalidity pension is granted to an insured person who, as
a result of bodily or mental infirmity or a decline in health, is no
longer able to perform the duties of his occupation or of any other
occupation corresponding to his previous profession, the nature of
his employment in such profession, his position therein, and his
practical and theoretical training.
The invalidity pension consists of a basic sum of 3,600 K6. a year,
plus an increment based on the number of contribution-months
completed by the beneficiary, varying from 2 to 50 Kc. according to
his salary class. A children's bonus, equal to one-eighth of the total
pension including increment, is granted for each child under 18 years
of age maintained by the insured person.
(6) An old-age pension is granted to insured men who have attained
the age of 65 years and to insured women at the age of 60 years. An
old-age pension is also granted to insured men who have reached their
sixtieth year and who have at least 480 contribution-months to their
credit and to insured women who have completed their fifty-fifth
year, provided they do not exercise an occupation liable to insurance.
The old-age pension is calculated in the same manner as the invalidity
pension.
(c) A widow's pension is granted to the widow of a pensioner or
insured person who dies after completing the qualifying period. It is
equal to one-half of the pension to which the deceased person was or
would have been entitled, but may not be less than 3,000 Kc. a year.
A similar pension is granted to the widower of an insured woman who
at the time of her death was in receipt of a pension or would have
been entitled to a pension, and who supported her husband out of her
earnings ; this pension is paid to the widower only if and so long as
he is incapable of work and in necessitous circumstances.

CZECHOSLOVAKIA

103

(d) An orphan's pension is granted to each child of the deceased
under 18 years of age. It amounts to one-quarter of the pension of the
deceased, with a minimum of 1,500 Ko. a year, for an orphan who
has lost one parent, and to one-half of the pension of the deceased,
with a minimum of 3,000 Kc. a year, for orphans who have lost both
parents. The pension may be granted up to the age of 24 years if the
child has not completed its vocational training or is unable to provide
for itself owing to infirmity.
Grandchildren of the deceased person who were mainly dependent
upon him for their maintenance are also entitled to a pension, provided
that the aggregate amount of the widow's pension and those of the
children does not exceed the pension of the deceased.
(e) A parent's pension is granted to the parents of the deceased
who were mainly dependent on him for their maintenance, provided
he leaves neither widow nor children. It is equal to one-quarter of
his pension, with a minimum of 1,500 Kc. a year ; if both parents are
living, each of them receives one-eighth of his pension, with a
minimum of 750 Kc. a year.
An insured woman who marries after completing 60 contributionmonths is entitled to a dowry equal to the amount of the annual
invalidity pension to which she would be entitled in her salary class
in virtue of contributions paid on her behalf.
In case of the death of an insured person who has completed at
least six contribution-months, but who has not completed the
qualifying period, the widow and, in default of a widow, the children
are entitled to an allowance amounting to 1^ times the annual amount
of invalidity pension which would have been payable to the
deceased if he had completed 60 contribution-months. In the case of
surviving parents, this allowance is equal to one-half of that which
would be payable to the widow or orphans of the deceased.
Funeral benefit equal to one-fifth of the pension of the deceased
person, but not in any case more than 4,000 Kc., is paid to the near
relatives of the deceased who defray the cost of burial.
In addition to cash benefits, medical treatment and care may be
granted to insured persons and pensioners with a view to averting or
curing premature incapacity for work.
Under the Act of 14 July 1931, periods spent in employment before
the Act of 1929 came into force, and in respect of which insurance was
not compulsory at the time, count for one-half, provided contributions
were paid for them.
The Act of 12 June 1934 introduced a new benefit, described as
" social benefit", for insured persons who have reached the age of
56 years (54 years), have paid contributions for 120 months, and have
for more than one year been unable to find any gainful employment.
6.—Statistics.
Statistics for 1933 are given separately for the General Pension
Institution and for the substitute institutions. In the accounts of the
General Institution the statistics concerning the complementary insurance scheme by which the insured persons may obtain higher benefits
and those of the journalists' insurance scheme, which forms an
independent section of the General Institution, are shown separately.

104

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(a) General Pension Institution (Compulsory Insurance)
Number of insured persons in 1933 : 311,937.
INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of KÍ.)
INCOME

EXPENDITURE

Balance of fund a t end of
previous year
3,314,298
Contributions of insured persons and their employers 465,558
Income from capital
201,017
Capital representing rights
in course of acquisition
transferred from other institutions ...
26,509
Miscellaneous
54,788

Total

Invalidity and old-age pensions
209,087
Widows' pensions ...
48,184
Orphans' pensions ...
11,842
Other cash benefits
105,368
Benefits in kind20,957
Capital representing rights
in eourse of acquisition
transferred to other institutions ...
24,872
Administrative expenses ...
30,900
Balance of fund at end of
year
3,589,638
Miscellaneous
21,322
Total

4,062,170

BALANCE S H E E T AT 31 D E C E M B E R

4,062,170

1933

(in thousands of Ki.)
ASSETS

LIABILITIES

Cash a t bank
1,953
Deposits
153,180
Securities
1,153,679
Sundry debtors
2,187,884
Real property
104,789
Outstanding contributions..
44,150
Miscellaneous
177,048
Total

Reserves and other funds .
29,984
Sundry liabilities ...
42,382
Miscellaneous
.
160,680
Capital
. 3,589,637

Total

3,822,683

...

. 3,822,683

(6) General Pension Institution (Complementary Insurance)
Number of insured persons in 1933 : 4,249.
INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of Ki.)
INCOME

Balance of fund at end of
previous year
Insured persons' contributions
Capital representing rights
in course of acquisition
transferred from other
institutions
Income from capital
Miscellaneous
Total

EXPENDITURE

97,948
6,960

94,636
14,184
778
214,506

Benefits
Capital representing rights
in course of acquisition
transferred to other insti
tutions
...
Contributions refunded
Administrative expenses ..
Miscellaneous
Excess of income ...

10,734

285
251
426
981
201,829

Total

214,506

CZECHOSLOVAKIA

105

BALANCE S H E E T AT 31 DECEMBER

1933

(in thousands of Kc.)
ASSETS

LIABILITIES

Deposits
Securities
Outstanding contributions...
Sundry debtors
Miscellaneous

70,779
42,638

Total

209,384

95,634
328

Reserves and other funds ..
Sundry creditors
Capital

6,852
201,829

Total

209,384

703

(c) Journalists' Insurance Scheme
Number of insured persons a t 31 December 1933 : 856.
INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of KC.)
INCOME

EXPENDITURE

Balance of fund a t end of
previous year
Contributions
Income from capital
Miscellaneous

43,490
4,051
2,346

Total

50,044

...

Benefits
Administrative expenses
Miscellaneous
Excess of income

2,906
...

165
113

46,860

157

Total

BALAIS CE S H E E T AT 31 DECEMBER

50,044

1933

(in thousands of Kd.)
ASSETS- .

Deposits
Securities
Sundry debtors
Miscellaneous
Total

LIABILITIES

252

37,728
5,498
4,702

Reserves and other funds ...
Miscellaneous
Capital

1,285
46,860

Total

48,180

(d) Substitute Institutions
Number of insured persons in 1933 : 40,448.
Capital of the 33 substitute institutions in operation on 1 J a n u a r y 1933 :
2,379,773,498 Kc.
C.—MIXERS'

SCHEME

1.—Legal Basis.
The miners' invalidity, old-age and widows' and orphans' pension
insurance scheme is governed by the Act of 11 July 1922 (Collection
of Laws, No. 242).
2.—Scope.
Insurance is compulsory for all persons employed in Czechoslovakia
in mining undertakings, irrespective of age, sex and nationality.
3.—Administration.
The insurance scheme is administered by the Central Miners'
Benefit Society in Prague. The local organs of the Central Society
are the district benefit societies responsible for the administration of
sickness insurance, of which there are eight, one for the area of each
district mining authority.

106

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The executive organs of the Central Society are the general assembly, the governing body and the supervising committee ; these bodies
are composed of representatives elected by the insured persons and
their employers.
4.—Financial Resources.
The resources are derived from contributions, which are fixed for
all insured persons irrespective of salary at 87 Kc. a month, of which
33 Kc. are paid by the insured person and 54 Kc. by the employer.
The employer is required to pay the whole contribution for persons
not in receipt of cash wages or who receive only a small wage because
their occupational training is not complete.
5.—Benefits.
Benefits include invalidity pensions, old-age pensions, and widows'
and orphans' pensions.
(a) An invalidity pension is paid to an insured person who becomes
incapable of carrying on his occupation. It may be claimed by an
underground worker who has lost at least 40 per cent, of his working
capacity, and by a surface worker who has lost 50 per cent, of the said
capacity. The right to a pension is acquired after the completion of a
qualifying period of five years ; if the circumstances justifying the
payment of a pension occur prior to the completion of the qualifying
period, but after at least three years' affiliation, the insured person is
entitled to claim a pension equal to two-thirds of the full pension.
No qualifying period is required when invalidity results from an
industrial accident.
The pension comprises a basic sum of 900 Kc. a year plus an
increment at the rate of 8 Kc. for each contribution-month after the
completion of the qualifying period. The pension of an incapacitated
person whose condition entails the constant help of another person is
increased by one-half.
(b) An old-age pension is granted to insured persons who have
completed their fifty-fifth year and have been employed for 30 years
in an undertaking liable to miners' compulsory insurance, and to
insured persons who have completed their sixtieth year and at least
15 years' membership of the Central Society. The old-age pension is
calculated in the same way as the invalidity pension.
(c) A widow's pension is granted to the widow of a pensioner or
insured person who dies after having completed the qualifying period.
There is no age-limit for the widow. The pension is equal to one-half
of the pension to which the deceased person was or would have been
entitled. In case of remarriage the widow's pension is commuted by
the payment of a lump sum equal to three times her annual pension.
(d) An orphan's pension is payable to each child of a deceased
pensioner or insured person up to the age of 16 years, and without
any age limit in the case of children who are totally incapable of
earning their living owing to mental or physical infirmity. The

107

CZECHOSLOVAKIA

orphan's pension is equal to one-quarter of the pension to which the
deceased was or would have been entitled in case of invalidity ; an
orphan who has lost both parents is entitled to half the deceased
person's pension.
The pensions of the widow and children together may not exceed
three-quarters of the pension to which the deceased was or would
have been entitled.
6.—Statistics.
Number of insured persons in 1933 : 102,662.
INCOME AND E X P E N D I T U R E TOR

1933

(in thousands of Ki.)
EXPENDITUBE

INCOME

Contributions of insured persons and their employers
Income from capital
Miscellaneous
Excess of expenditure

103,835
5,713
44
111,258

Total

220,850

Pensions in course of acquisition
Administrative expenses ...
Miscellaneous

190,401
893
29,556

Total

220,850

BALANCE S H E E T AT 31 D E C E M B E R

1933

(In thousands of Kö.)
ASSETS

LIABILITIES

Cash a t bank
Securities
Deposits
Real property
Mortgage loans
Outstanding contributions.
Furniture and fittings
Miscellaneous
Deficit
.

252
84,057
16,910
1,848
1,601
9,552
14
1,191
206,777

Total

322,202

...

Benefits not yet paid up
Sundry creditors
Miscellaneous

Total

4,098
318,032
72

322,202

IV.—Subsidised Benefit Schemes for Staff of State Railways
A.—WORKMEN'S

COMPENSATION

1.—Legal Basis.
Workmen's compensation on the State railways of Bohemiat
Moravia and Silesia is governed by the Acts of 24 December 1887 and
20 July 1894, and in Slovakia and Carpathian Ruthenia by Act
No. XIX of 1907 as amended by the Act of 10 April 1919 (Collection
of Laws, No. 207), by the Decree of 19 May 1919 (No. 272), and by
the Act of 21 December 1921 (No. 481).
2.—Scope.
All salaried employees (other than office staff) and all workers are
covered by the scheme, irrespective of their age and the amount of
their salary or remuneration.

108

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

3.—Administration.
In virtue of permission given by the Act, the State Railways
Department has constituted itself its own insurance carrier for the
whole of the permanent staff. The management of each State railway
has set up a pension committee composed of four members, two of
whom are elected by the management and two by the staff. When an
application for a pension is not accepted by the majority of a pension
committee, the final decision lies with the Railways Department, after
consultation with a central committee on which both the management
and the staff are represented.
4.—Financial Resources.
The money required to cover the cost of pensions is derived from
the general funds of the State Railways Department.
5.—Benefits.
The compensation scheme which the Railways Department is
bound to apply corresponds to the general workmen's compensation
scheme (see I, Workmen's Compensation, A. and B.). But, whereas
under the general scheme wages in excess of 12,000 Kc. are not taken
into consideration for the assessment of pensions, no wage limit is laid
down by the State Railways Department.
6.—Statistics.
Number of staff covered by insurance in 1933
...
...
... 145,696
Number of beneficiaries a t end of 1933
...
...
...
...
7,091
Expenses incurred b y the State Railways Department for pensions to victims
of accidents and their dependants a n d for other cash benefits : K c . 18,930,000
B.—SICKNESS

INSURANCE

1.—Legal Basis.
The staff of the State railways comes under compulsory sickness
insurance in conformity with section 5 of the Act of 9 October 1924
as amended by the Act of 8 November 1928. Insurance is compulsory
for officials of the Ministry of Railways in conformity with Article 22
of the Act of 15 October Ï925, No. 221.
2.—Scope.
All members of the staff and all officials of the State Railways
Department are liable to insurance.
3.—Administration.
The insurance scheme is administered by the special Sickness
Insurance Fund for the Staff of State Railways.
4.—Financial Resources and Benefits.
The provisions of the Act of 9 October 1924, as amended by the
Act of 8 November 1928, are applied in the same conditions as to other
employed persons (see II.—Sickness Insurance). For officials of the
Ministry of Railways, see the part dealing with the insurance of
public officials.

109

CZECHOSLOVAKIA

5.—Statistics.
Number of insured persons in 1933 : 224,232.
INCOME AND E X P E N D I T U R E FOB

1933

(in thousands of Kd.)
INCOME

EXPENDITURE

Contributions of insured persons
Contributions of State Railways Department

10,078
48.955

37,868

Cash benefits
Benefits in kind
Deficit of the Fund's health
establishments
Administrative expenses ...
Miscellaneous

35,058

Total

72,926

Total

72,926

BALANCE S H E E T AT 31 D E C E M B E R

9,687
3,477
729

1933

(in thousands of Ki.)
ASSETS

LIABILITIES

Cash at bank and securities
Equipment ...
Real property
Furniture and fittings
Miscellaneous

212
696
26,148
7,392
936

Amount due to State Railways Department
Loan to relief fund of Sickness Insurance Fund for
Railway Staff
Reserve fund
Miscellaneous

8,166
5,082
16,345

Total

35,384

Total

35,384

C.—INVALIDITY,

OLD-AGE,

AND

WIDOWS'

AND

OBPHANS'

5,791

INSURANCE

The staff of the permanent establishment comes under a special
pension scheme, which is similar to the pension scheme for State
officials ; the staff which does n o t come under the special scheme is
covered by the general legislation concerning invalidity, old-age, a n d
widows' and orphans' insurance for workers and salaried employees,
which is applied through the medium of an insurance fund managed
by the State Railways Department. The provisions of the special
scheme are described below.
1.—Legal Basis.
Insurance is governed b y the Decree of 5 March 1927 (Collection
of Laws, No. 15).
2.—Scope.
Insurance is compulsory for all permanent employees ; temporary
employees m a y be admitted to insurance after one year of unbroken
service, and after three years' service they are automatically admitted
on request.
3.—Administration.
The insurance scheme has no separate legal identity from the State
Railways Department, of which it forms an integral part.
The pensions are granted by the State Railways Department.
Disputes concerning benefits are dealt with by the ordinary courts.

110

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
Employees belonging to the scheme pay a contribution amounting
to 8 per cent, of that part of their remuneration which is taken into
account for the assessment of pensions. Train staff pay a contribution
of 11-5 per cent.
Every year the State Railways Department pays into the pension
fund of the scheme the difference between the income derived from the
contributions of the insured and the amount necessary to cover the
cost of pensions and allowances.
5.—Benefits.
The scheme provides invalidity and old-age pensions, pensions and
allowances to widows and orphans, and funeral benefit.
For certain classes of members the whole salary, including one-half
the residence allowance, is taken into account for the assessment of
pensions, while for other classes only five-sixths of the remuneration or
salary is considered.
(a) Invalidity and old-age pensions. Employees who have been
affiliated to the scheme for ten years are entitled to claim a pension.
Five years' affiliation is sufficient if at the end of such period a member
is unfit for further service owing to infirmity. No qualifying period is
required in case of accidents incurred while on duty.
The pension payable to an employee who has completed ten years'
membership of the scheme is equal to 40 per cent, of his basic remuneration ; it is increased for each year of service from the eleventh year
onwards by 2-4 per cent, of the basic remuneration, so that after 35
years' membership of the fund the maximum pension, which is equivalent to the basic remuneration, is reached. In the case of train staff,
who pay higher contributions, each complete year of service counts
as one and a half years for the assessment of pensions.
(b) Widows' pensions and allowances. The widow of a pensioner
or of an employee who dies while on the active list is entitled to a
pension equal to two-thirds of the pension to which the deceased was
or would have been entitled ; this pension may in no case be less than
40 per cent, or more than 50 per cent, of the basic remuneration. The
pension of a widow whose husband dies while on the active list, but
who was not entitled to a pension at the time of his death, amounts to
40 per cent, of the basic remuneration.
A widow who does not fulfil certain conditions concerning the
duration of her marriage or who cannot claim a pension for some other
reason is granted an allowance equal to three times the amount of the
annual remuneration of her deceased husband.
(c) Orphans' pensions and allowances. Each child of a deceased
pensioner or insured person is entitled to a pension equal to one-fifth
of the widow's pension. The total amount payable in children's pensions may not exceed the amount of the widow's pension. Sons are
entitled to a pension up to 21 years of age, daughters until 24 years.
The pension may be continued beyond these limits in the case of
children who are incapable of earning their living owing to an infirmity.

111

CZECHOSLOVAKIA

An orphan who has lost both parents is entitled to a pension equal
to one-half of the widow's pension. If three or more such orphans are
left, they are entitled to one-half of the widow's pension plus a supplement equal to the difference between the pension payable to orphans
who have lost both parents and the total pension granted to children
who have not lost their father.
A widow who is reponsible for the maintenance of the children of
the deceased person, and likewise orphans who have lost both parents,
receive in addition to the orphans' pension a special allowance for
educational purposes amounting to 1,800 Kc. a year per child (1,200
in the case of a child of a lower grade employee) and to 3,000 Kc.
(2,400) for two or more children. This allowance is paid until the
children are 18 years of age, and where necessary until 24 years of age
for children who continue their studies.
In addition to pensions and allowances, funeral benefit amounting
to three times the monthly remuneration is paid on the death of a
pensioner or insured person. Such benefit is paid to the widow and,
in the absence of a widow, to the children who were dependent on the
deceased or who defray the cost of burial. In default of descendants
or other legal heirs, the funeral benefit is paid to the persons who
defray the cost of burial.
6.—Statistics.
(a) Special Scheme for Salaried Employees and Permanent Staff in 1933
Number of members
...
Number of pensioners
Cash benefits

...
...

... 119,743
... 100,028
869,767,707 K c .

(6) Normal Scheme for Temporary Staff in 1933
1. Workers :
Number of members
Number of pensioners
Cash benefits

...
...

17,229
704
621,363 Kc.

2. Salaried employees :
Number of members
Number of pensioners
Cash benefits

...
...

487
2
21,604 Kc.

V.—Voluntary Unemployment Insurance
1.—Legal Basis.
The scheme of subsidised voluntary unemployment insurance is
governed by the Act of 19 July 1921, as amended by the Act of 5 June
1930 and modified by Legislative Decree No. 161 of 1933.
2.—Scope.
The scheme covers all members of workers' organisations which
pay unemployment benefit. Salaried employees who are compulsorily
insured against sickness are entitled to a supplement from the State
in addition to the benefit paid by their organisation.
Foreigners are entitled to a supplement from the State subject to
the grant of reciprocal treatment by their own country.

112

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

3. —Administration.
The scheme is administered by the workers' organisations. The
accounts relating to unemployment benefit and State supplements are
kept separate from those relating to the other operations of the
organisations.
4.—Financial Resources.
The resources are derived from members' contributions.1 The
Treasury places the amount required for the payment of State
supplements at the disposal of the workers' organisations.
5.—Benefits.
The right to unemployment benefit is defined in the rules of the
workers' organisations. The State supplement is paid to persons who
are entitled to benefit under the rules and have been members of the
organisation for at least six months. It is paid for a period of not
more than 26 weeks or six months.
Members of an organisation whose right to benefit under the rules
and to a State supplement has already expired and who, owing to
unfavourable conditions in the labour market, are still unemployed
are entitled to extraordinary unemployment benefit with State
supplement for a further period of 13 weeks in the year.
The rate of unemployment benefit is fixed in the rules of the
organisations. In 1933 the Government prescribed a minimum of
0-75 Kö. per day. The amount of the State supplement in 1933 was
fixed at 200 per cent, of the benefit under the rules, being increased
to 250 or 300 per cent, for unemployed persons with family responsibilities. It was only 100 per cent, of the benefit for persons with an
income at least equal to what might be considered the normal wage
in their occupation.
Under the Legislative Decree of 1933, the State supplement could
not exceed 12 Kc. per day. The maximum was fixed at 15 Kc. for
wage-earners paying a weekly contribution of at least 5 Kc. to their
organisation.
The aggregate amount of the benefit paid under the rules and the
State supplement ' may not exceed two-thirds of the beneficiary's
normal wages. Any excess is deducted from the State supplement.
In 1933 the minimum rate of the extraordinary benefit was fixed
at 0-25 Kc. per day and that of the State supplement at 1-75 Kc., or
2-25 Kc. per day for unemployed persons with family responsibilities.
The maximum rate of the State supplement was fixed at 6 Kc. per
day, and 7 • 50 Kc. in the case of persons paying a member's contribution of not less than 5 Kc. per week.
1
Under an Order of 26 J a n u a r y 1934 the decisions of the competent bodies
of the workers' organisations are submitted to the Ministry of Social Welfare for
approval. The Ministry fixes the proportion of t h e member's contribution to
be allocated to the unemployment fund.

CZECHOSLOVAKIA

113

6.—Statistics for 1933.1
Average membership of workers'organisations ...
Average number of unemployed persons in receipt
of benefit and State supplement ...
...
...
Average number of unemployed persons in receipt of
benefit only
Total number of unemployed persons in receipt of
benefit
Unemployment benefit paid :
B y workers'organisations
...
...
...
By the State
Total

THIRD

SOCIAL

1,467,066
245,590
2,023
247,613
Kè.
137,000
535,000
672,000

PART

ASSISTANCE

I.—Non-Contributory Old-Age Pensions
1.—Legal Basis.
The Act of 21 March 1929 (Collection of Laws, No. 43), introduced
non-contributory pensions for persons who on 1 July 1926, when the
general scheme of invalidity, old-age and widows' and orphans'
pensions came into force, were too old to enter into insurance.
2.—Beneficiaries.
All persons in indigent circumstances and incapable of work who
do not come within the scope of the Act of 9 October 1924, because
they were over 60 years of age at the time when the Act came into
force, are entitled to a pension on reaching their sixty-fifth year.
As a rule, pensions are reserved for Czechoslovak nationals ; they
may be granted to aliens when their country of origin extends the
benefit of its non-contributory pension system to Czechoslovak
nationals.
3.—Administration.
The pension system is administered by the communal and district
authorities. Pension claims must be made to the commune in which
the claimant is domiciled, the final decision being taken by the
administrative authority of the district to which the commune
belongs.
4.—Financial Resources.
The cost of pensions is borne by the State.
The commune in which the beneficiary resides is required to pay a
supplementary allowance, which varies with the number of inhabitants
in the commune; the rate is fixed at 10 per cent, of the State pension
in communes with a population not exceeding 2,000, at 15 per cent, in
communes with a population of 2,000 to 50,000, and at 20 per cent, in
communes with a population of over 50,000.
1
Reports issued by t h e Statistical Office of the Czechoslovak Republic,
Nos. 1 and 2, 1934.

x G 14641

114

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

5.—Benefits.
The pension payable by the State amounts to 500 Kc. a year.
To this sum is added the supplementary allowance granted by the
commune.
6.—Statistics.
ExPENDITTJBE ON NON-CONTKIBUTOBY OLD-AGE PENSIONS IN 1930

(in thousands of KS.)
Province in which the pensioner
was resident

Bohemia
Moravia-Silesia
Slovakia
Carpathian Ruthenia
Aliens ...
Total

Pension
payable by the
State
40,311
19,221
18,414
2,173
539
80,658

Supplementary
allowance
payable by the
commune of
residence
5,650
2,891
2,327
277
11,145

Total

45,961
22,111
20,742
2,450
539
91,803

II.—Poor Relief
1.—Legal Basis.
In Bohemia, Moravia and Silesia poor relief is governed by the Act
of 3 December 1863 (Collection of Austrian Laws, No. 105), supplemented in Bohemia by the Provincial Act of 3 December -1868. In
Slovakia and Carpathian Ruthenia, it is governed by the old Hungarian Acts No. XXII of 1866 and No. XXI of 1898, and by the
Order of the former Minister of the Interior No. 51000 of 1889.
2.—Beneficiaries.
Public assistance may be claimed by : (a) the indigent population
of the commune—that is to say by persons incapable of providing for
their own needs who are not in receipt of any other form of assistance ; (b) natives of other communes and non-indigenous persons to
whom the commune of residence cannot refuse the necessary assistance.
The commune of residence which has granted assistance may demand
a refund from the commune of origin of the assisted person.
3.—^Administration.
Assistance is granted in the first place by the commune of which
the destitute person is a native, and, in Bohemia, Moravia and Silesia,
by the commune in which a person of no special communal origin is
registered.
When a commune is unable to support the cost, assistance is
granted by the district and provincial authorities in Bohemia, and
by the provincial medical funds for indigent persons in Slovakia and
Carpathian Ruthenia.

115

CZECHOSLOVAKIA

4.—Financial Resources.
The cost of assistance is covered by the commune from funds set
aside for the purpose, such as extraordinary funds, proceeds from fines
imposed by the courts, etc. When these resources are inadequate,
the commune pays the cost of assistance from its general funds.
In Bohemia the commîmes may ask the district authorities to meet
the cost of assistance not covered by communal resources.
In Slovakia and Carpathian Ruthenia the provinces and the State
pay a part of the cost of assistance, especially in connection with the
cost of maintaining neglected children in State homes.
5.—Benefits.
Poor relief includes :
(a) Necessary maintenance, including food, clothing and shelter
for the poor and for persons who are legally dependent on the
poor;
(6) Medical treatment, the necessary medicaments and maintenance for sick persons without resources ;
(c) The education and training necessary to enable neglected
children to exercise a trade.
The administration of poor relief is left to the communes, except in
Bohemia, where it is governed by the Provincial Act. Maintenance
may be granted either through the inhabitants of the commune or
by placing the indigent in homes or hostels. It may also take the form
of cash benefits or benefits in kind. Medical treatment is granted in
public hospitals or at the home of the sick person and at the expense
of the commune.
6.—Statistics.
1. Indigent Persons Regularly or Temporarily Receiving Assistance
from Communes in 1931
Number of persons
A.—Regularly receiving assistance :
(1) Placed :
(a) I n communal homes
(6) I n other homes or with
private persons ...
(2) Receiving assistance :
(a) I n cash
(ft) I n kind
(c) Partly in cash and partly
in kind
(3) Receiving assistance from
various inhabitants of the
commune in rotation
B.—Receiving assistance
temporarily :
(a) I n cash
(6) In kind
(c) In some other form
Total

Men

Women

Total

8,207

10,804

19,011

23,664

24,758

48,422

24,655
13,667

54,059
14,792

78,714
28,459

6,127

7,357

13,484

1,244

949

2,193

34,136
38,375
5,094

25,283
27,349
3,096

59,419
65,724
8,190

155,169

168,447

323,616
H2

116

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

2. Communal Funds for Indigent Persons at the end of 1931
(in thousands of K6.)
•Cash ...
Securities
Deposits
Real property
Other assets .

ASSETS

Total

5,388
40,356
37,242
141,424
7,884

LIABILITIES

Debts
Balance

232,294

19,550
212,744

232,294

Total

3. Income and Expenditure of Communal Funds for the Assistance
of Indigent Persons in 1931
(in thousands of Kö.)
INCOME

EXPENDITURE

Income from capital
3,869
Taxes on public entertainments
6,450
Fines inflicted by administrative authorities or by the
courts
2,949
4,461
Gifts, collections and bequests
Contributions from the State,
provincial
and
district
authorities and other public
bodies corporate ...
3,855
13,386
Miscellaneous
Deficit covered by communes 182,747

Total

Building, equipment, maintenance and administration
of homes for indigent persons
Maintenance of indigent persons in communal homes
(board, clothing, fuel, light,
etc.)
Contributions
to
medical
treatment ...
Regular assistance in cash ...
Regular assistance in kind ...
Relief of other kinds.
Communal contributions to
old-age allowances (Act No.
43 of 1929)
Miscellaneous

217,717

4. Expenditure of District Authorities in 1931
(in thousands of Ki.)
...
...
...
...

...
...
...
...

Total

9,960
739
1,211
1,375
13,285

5. Expenditure of Provincial Authorities in 1931
(in thousands of K6.)
Subsidies to communal authorities
Subsidies to district authorities
Ot her expenditure
Total

...

32,292
21,455
47,793
3,756
17,400
9,468
36,658
217,717

Total

Endowment of district homes ...
...
Subsidies to communal authorities ...
Subsidies to associations and institutions
Miscellaneous
...
...
...
...

48,895

...

783
4,629
58,715
64,127

CZECHOSLOVAKIA

117

m.—Assistance for Young Persons, Mothers and Infants
1.—Legal Basis.
Assistance is governed in Bohemia, Moravia and Silesia by the old
Austrian Act of 3 December 1863 (Collection of Laws, No. 105),
supplemented in Bohemia by the Provincial Act of 3 December 1868
a n d b y the Act of 30 J u n e 1921 (Collection of Czechoslovak Laws,
No. 256), relating to the protection of children entrusted to the care
of strangers and of illegitimate children.
I n Slovakia a n d Carpathian Ruthenia assistance is governed by
the old Hungarian Acts Nos. V I I I and X X I of 1901, the first of which
relates to children's homes, the second to the maintenance of children
over 7 years of age who are dependent on public assistance.
On 14 March 1930, an Order relating to the compulsory supervision
of illegitimate children entrusted to the care of strangers was brought
into operation.
.
2.—Beneficiaries and Administration.
I n Bohemia, Moravia and Silesia the commune of origin is required
to provide n o t only maintenance b u t also education and training for
orphans and deserted or neglected children, by setting u p the necessary
institutions. When the commune is unable to meet the cost, assistance
is given by the district. The protection of children who are physically
or mentally deficient is undertaken in the first place by the provinces.
I n Slovakia and Carpathian Ruthenia orphans and deserted or
neglected children are placed in State institutions or in families under
their supervision. State homes for neglected children have been set u p
in virtue of Acts Nos. V I I I and X X I of 1901. The maintenance of
children under 7 years of age is undertaken by the State ; the cost
incurred for the maintenance of older children must be refunded to
the State b y the commune of origin.
I n 1933 there were several thousand institutions for the assistance
of the young.
Institutions of various types have been set up for the assistance of
young persons, mothers a n d children, including children's homes,
orphanages, homes for young mental defectives, homes for blind
children and the deaf and d u m b , consultation centres for mothers and
infants, nurseries, etc.
As regards the legal protection of orphans a n d deserted or neglected
children, a large p a r t of the cost is borne by public utility associations
subsidised by the State—such as the " centres for the protection of
youth " . A special committee for the protection of young persons
has been attached to each district court. These institutions centralise
child welfare work, and at the same time assist the public authorities,
in particular, the Ministry of Social Welfare. They are also responsible
for the compulsory supervision of illegitimate children entrusted to the
care of other persons.

118

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

3.—Financial Resources.
The communes, districts, provinces and the State all share in the
cost of assistance in accordance with the law. The State and the
provinces also grant subsidies to voluntary associations with schemes
for the development of existing assistance institutions and the setting
up of new institutions.
4.—Statistics.
State Expenditure for the Assistance of Young Persons in 1933
(in thousands of Kc.)
1. State assistance for children and adolescents
(scheme applying in Slovakia and Carpathian
Kuthenia)
2. Legal protection for children placed outside their
families and for illegitimate children
...
...
3. Legal protection for the children of vagrant gypsies
4. State subsidies to institutions for the protection of
children, mothers and infants
...
...
...
5. Other expenditure (education, propaganda, supervision, etc.)

11,369
1,600
150
13,000
160

Total

26,279

Voluntary assistance for children and adolescents is organised by
the district committees for the welfare of young persons, which operate
as semi-official bodies. The distribution of these committees is as
follows :
Number
of committees

Bohemia :
Czech
German
Moravia and Silesia :
Czech ...
German
Polish

220
101
-321

Slovakia :
Slovak ...
German
Carpathian Buthenia
Total

94
62
2
-158
80
13
- 93
12
584

IV.—Sickness Benefit paid by Employers
1.—Legal Basis.
Sickness benefit at the employer's expense is governed by the Civil
Code, section 1154 (b) (Act of 1 April 1921, Collection of Laws, No. 155),
by the Act of 16 January 1910, section 4 (Collection of Austrian Laws,
No. 20) and by the Act of 13 January 1914, sections 12 and 13 (No. 9).

CZECHOSLOVAKIA

119

2.—Benefits.
(a) Under section 1154 (b) of the Civil Code, a worker who, as a
result of illness or accident not intentionally incurred, is incapable of
performing his work is entitled to :
10 per cent, of his wages during the 3rd and 4th weeks of illness :
20 per cent, during the 5th and 6th weeks ;
30 per cent, during the 7th and 8th Weeks.
The worker retains these rights even when his contract of employment is cancelled by his employer owing to incapacity extending
beyond four consecutive weeks.
The employer may deduct from the worker's cash wages the amount
of any benefits received from a social insurance fund, but the said
deduction may not exceed the total contribution payable by the
employer to such fund.
(b) Under the Act of 15 January 1910, a commercial employee
who, owing to illness or accident not intentionally incurred, is unable
to perform his duties is entitled to his full salary for a period of six
weeks. The employer may not deduct from the employee's pay any
sums received by the latter from a social insurance institution.
(c) Under the Act of 13 January 1914, an employee of an agricultural
or forestry undertaking who, owing to illness or accident not intentionally incurred, is unable to perform his work is entitled to his full
wages during the first four weeks of incapacity. For each year of
service after the first, the right to wages is extended by a fortnight,
up to a maximum of six months.
The employer may deduct from the employee's wages the amount
of sickness benefit received by the latter under social insurance, up
to an amount not exceeding the total insurance contribution payable
by the employer.
In case of the illness of an employee whose wages do not exceed
3,000 Ko. a year, the employer is also required to provide medical
treatment as long as the employee is entitled to draw his wages.
When the wages received do not exceed 1,200 Kc. a year (800 Kc. in
the case of unmarried persons), the employer must also pay the cost
of the requisite medicaments. The employer is not obliged to grant
medical treatment and drugs if these are already provided by a
sickness insurance fund.
No statistics have been compiled for sickness benefit paid by
employers.

FOURTH PART
HOUSING
1.—Legal Basis.
The Act of 20 February 1919 provided that a National Housing
Fund should be set up ; principles for the promotion of building were
laid down in the Act of 23 May 1919 ; amendments were introduced
by the Act of 7 April 1927, which was supplemented by the Acts of

120

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

1930, 1931, 1932 and 1933. The purpose of all these laws is directly
to promote the building of cheap dwellings. Indirect incentives are
contained in the Act of 17 December 1919 concerning the expropriation
of land for housing. The Act of 30 March 1920 allowed temporary
exemption from taxation in the case of new buildings. The provisions
concerning such exemption were amended by the Act of 15 June 1927.
2.—Beneficiaries; Bodies concerned in Building.
Under the Act of 1919, financial assistance may be granted only
to communes, administrative districts and building societies recognised
as being of public utility. The laws and regulations introduced from
1921 to 1924 extended the circle of beneficiaries to include all legal
and physical persons, but local authorities and recognised building
societies receive more favourable treatment. Social insurance institutions are placed on the same footing as recognised building societies.
The Acts passed between 1927 and 1930 confined benefits to public
bodies corporate, recognised building societies and persons building
private houses.
The Acts of 1923 and 1924 allowed the grant of subsidies for building
any kind of dwelling to persons other than recognised building societies.
Special provisions for " houses consisting of small flats " were
first introduced by the former Austrian legislation. As a rule any
house in which at least two-thirds of the total area built on is used for
small flats and business premises is considered to be a " house consisting
of small flats ". A " small flat " is defined as a flat with a habitable
area of not more than 80 square metres, excluding the kitchen and
maid's room, provided that each of these two rooms does not exceed
12 square metres in area. " Small business premises " may not
exceed 36 square metres unless the tradesman or manufacturer occupies
a small flat in the same house.
The Act of 1930 introduced the notion of " houses consisting of
very small flats ". I n these houses 60 per cent, of the total area built
on is used for flats of not more than 40 square metres each which
consist of a kitchen and one room.
3.—Financing by Public Authorities.
The National Housing Fund guarantees credits and mortgage loans.
The Act of 1919 provided only for the guaranteeing of mortgages
by the State. Another form of assistance, consisting in annual
subsidies paid direct by the State to the owners of newly-built houses,
was introduced by the laws and regulations adopted between 1921
and 1924.
The first type of assistance consists in the guarantee by the State
of mortgage loans granted up to the maximum limit allowed by the
trustee funds. The State undertakes the payment of interest and
redemption charges until the debt has been paid off. In the case of
houses built by local authorities or by recognised building societies,
the loan guaranteed by the State could amount under the Act of 1919
to 90 per cent, of the cost of building for tenement houses and 80 per
cent, for private houses. In the case of other classes of beneficiaries,
the State guarantee varied between 60 and 80 per cent, of the cost of
building.

CZJtìOHOSLOVAKIA

121

The Act of 1923 reduced the maximum amount of the mortgage
loan which the State may guarantee for privileged beneficiaries to
70 per cent, of the building costs, whether for tenement houses or
private houses. I n the case of non-privileged beneficiaries the
financial assistance could amount to between 50 and 60 per cent, of
the building costs, according to the number of dwellings. The Act
of 1924 reduced the maximum to 45 per cent, for privileged beneficiaries
and 35 per cent, for other beneficiaries.
Under the Act of 1919, mortgage loans which were not guaranteed
b y the State might amount to not more t h a n 50 per cent, of the
building costs which were not covered b y the guarantee.
These provisions remained in force until 1923. From t h a t date
onwards the total amount of mortgage loans, whether guaranteed or
not, for tenement houses built by recognised building societies, might
not exceed 92 per cent, of the total building costs. The owner had to
undertake to refund to the State the interest and redemption charges
paid on the guaranteed loan of 45 per cent. (1924 Act), 70 per cent.
(1923 Act) or .35 per cent. (Acts passed from 1919 to 1922) of the building
costs, as the case might be.
Similar refunds were required of nonprivileged beneficiaries if the guaranteed loan amounted to more t h a n
70 per cent, of the building costs. If the building also contained
business premises, the owner was required to refund to the State the
annual charges in respect of the fraction of the loan corresponding to
such premises.
The purpose of the State guarantee was to compensate beneficiaries
for non-recoverable costs, i.e. the difference between the total cost of
construction a t the time when the building was completed and the value
of the building when economic conditions had been stabilised. The
State reserved the right, which it has not exercised so far, to recover
from beneficiaries the amount of any payments it made under the
guarantee.
The same principle was adopted for the second type of financial
assistance, introduced by the Act of 1921. Under this form of
assistance, the State undertook to pay direct to the owners of the houses
a yearly contribution which was to cover part of the interest and
redemption and charges interest on the total amount of building
costs. Under the Acts passed between 1921 and 1923, the direct
contribution of the State might be paid to privileged or non-privileged
beneficiaries, whether in respect of tenement houses or of private
houses. During the first five years after the completion of the building
the State contribution was fixed a t 4 per cent, of the building cost,
after which it was to be reduced every five years. Under the Act of
1924 the direct contribution of the State was to remain constant
during the whole period of 25 years ; the amount of the contribution
was higher for privileged beneficiaries. Under the Acts passed between
1921 and 1922, the capitalised value of the State contribution amounted
to 50-92 per cent, of t h e building costs, and under the Act of 1923 to
41-25 per cent., the costs being capitalised a t an interest rate of
4-5 per cent. Under the Act of 1924 the capitalised value of the
contribution for houses the building of which began during the first half
of 1924 equalled 31 • 19 per cent, of the total building costs for privileged
beneficiaries and 29-44 per cent, for non-privileged beneficiaries.

122

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Under the Acts of 1927 and 1928, financial assistance was converted into a State guarantee without any undertaking to pay interest
and redemption charges. The mortgage loans guaranteed by the
State could amount to 40 per cent, of the total building costs. With
a first mortgage it was thus possible to cover 85 per cent, of the cost
for tenement houses and 75 per cent, for private houses.
Under the Act of 1930 there was a return to the type of assistance
for which provision had been made in the Acts passed between 1921
and 1924. The State undertook to pay beneficiaries, under certain
conditions, a contribution equal to 2-5 per cent, of the loans with a
view to covering part of the redemption and interest charges. This
contribution is granted only for the building of " very small flats ",
small business premises, and flats consisting of one or two rooms
with a kitchen, provided the tenants have at least three dependent
children ; the residents must be indigent persons.
In addition to this type of relief, the Act of 1930, like those of 1927
and 1928, also provided for a State guarantee. The mortgage loan
guaranteed by the State may not exceed 50 per cent, of the building
costs for tenement houses consisting of small flats. The total amount
of loans may not exceed 90 per cent, of the building costs.
Exemption from taxation was at first granted for a period of 20
years in respect of houses consisting of small flats. The Acts of 1921
and 1922 extended the period to 50 years ; the Act of 1923 reduced it
to 30, and the Act of 1924 to 25 years. The period of exemption from
direct taxes was fixed at 12 years as a rule for houses consisting of small
flats or small business premises and 6 years for other buildings.
Under the Act of 1927, the period was increased to 35 years for new
houses consisting of small flats and small business premises and to 25
years for other buildings. Under the Acts of 1928 and 1930 the
periods were reduced to 25 and 15 years respectively.
Exemption from taxation also applies to the rates collected by
the communes and, under the Act of 1927, to communal taxes on rents
and real property. Under the Acts of 1928 and 1930 the period of
exemption was fixed at 20 years and 10 years respectively for houses
consisting of small flats and other buildings.
4.—Statistics.
D W E L L I N G S B U I L T UNDER THE H O U S I N G ACTS

Form of State assistance

(a) National Housing F u n d
(6) From 1919 to 1924 :
1. Guaranteed mortgage loans
(privileged beneficiaries especially)
2. Direct contributions...
(c) From 1917 to 1930
(privileged beneficiaries especially)

Tenement
bouses

Private
houses

Total
number of
dwellings

139

1,265

3,698

3,402

17,088

54,234

2,689
784
2,098

13,201
6,913
10,180

44,805
11,687
51,437

2,036

1,507

40,078

123

CZECHOSLOVAKIA

FINANCIAL

OPERATIONS

UNDEB THE HOUSING

ACTS

(in millions of Kc.)

Form of State assistance

(o) National Housing F u n d 1
(6) From 1919 to 1924 :
1. Guaranteed mortgage loans
(privileged beneficiaries especially)
2. Direct contributions
(c) From 1917 to 1930
(privileged beneficiaries especially)

Total cost of
dwelling
houses

Loans
guaranteed

359-4

148-2

4,364-3

3,306-0

3,730-4
555-8
3,173-6

2,915-0
1,326-8

16-4
1,212-6

2,494-5

1,101-5

1,108-1

Subsidies'

At 31 December 1933 the assets of the National Fund amounted to 59-2 million Kö.
* The budget for 1933 included an amount of 26 million Kö. to cover expenditure in respect
of direct yearly contributions.

FIFTH PART
FAMILY

ALLOWANCES

In addition to the legal provisions concerning allowances to officials,
collective agreements concluded for several occupations make provision
for family allowances.
1.—Family Allowances to Officials.
Family allowances for State officials and teachers were introduced
by the Acts of 24 June 1926 (Collection of Laws, Nos. 103 and 104)
and for the staff of the railways by the Order of 5 March 1927 (No. 15).
Officials and teachers with one dependent child receive an allowance
of 1,800 Kc. a year, while those with several children dependent on
them receive 3,000 Kc. a year; for employees who cannot be deemed
to be officials the allowance is respectively 1,200 and 2,100 Kc.
The allowance is paid for children up to 18 years of age, but it may
be continued until 24 years of age for children who study at higher
educational establishments, and without any time-limit for children
unable to earn their living owing to an infirmity.
Higher officials and employees of the railways receive the same
allowances as State officials, other railway servants those granted to
State employees; auxiliary railway workers receive a monthly
allowance of 100 Kc. for one child and 175 Kc. for several children.
2.—Provision îor Allowances in Collective Agreements.
Collective agreements dealing with family allowances are to be found
mainly in mining undertakings, credit establishments, and agriculture.

124

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Mining Undertakings
The provisions made in collective agreements vary from one district
to another, and allowances are paid in cash and in kind.
(a) Cash allowances.
In the Moravska-Ostrava basin, workers who have at least three
children dependent on them receive an allowance for each shift worked,
amounting to 1.83 Ko. for three children, 1.95 for four, 2.07 for five,
2.19 for six and 2.31 Kc. for seven or more children. The allowance
is paid until the age of 14 years ; it may be continued up to 18 years
when the child attends a public educational establishment or is unable
to work owing to an infirmity.
In the Kladno-Rakovnik basin, an allowance of 1 Kc. for each shift
worked is granted for each child under 16 years who lives in the same
household as the father or is otherwise dependent on him.
In the Plzen-Eadnice basin, an allowance is paid to married workers
with or without children, an additional allowance being provided for
workers with dependent children. The allowance increases as the
rate of wages decreases.
In the lignite mines of North- West Bohemia, an allowance of 1.35 Kc.
for each shift worked is granted for each child under 14 years of age
(under 16 when the child is unable to work). In addition, married
workers with or without children are entitled to a supplementary
allowance of 0.90 Kc. for each shift worked.
(b) Benefits in kind.
Benefits in kind consist of free coal or coal at reduced prices,
housing facilities and other advantages ; here also conditions vary
with the district.
In the Moravska-Ostrava basin, all workmen and workwomen
who have their own household are entitled to 3 quintals of coal a
month if they have worked in the coalfield for one year, and to 3 • 5
quintals if they have worked there for at least eight years. If several
persons living in the same household are entitled to a coal allowance,
the total allowance may not exceed five quintals a month. Unmarried
persons who live with their parents and who defray the household
expenses are entitled to 1-5 quintals of coal a month if they have
worked in the coalfield for at least one year. Persons in receipt of a
pension are entitled to 15 quintals a year, while widows of workers
killed in industrial accidents who are responsible for the maintenance
of at least two children under 14 years of age receive 15 quintals a year.
The same quantities of coal are granted in the Kladno-Rakovnik
coalfield.
As far as possible married workers in all coalfields are granted
quarters in the workers' settlements or in other buildings belonging
to the mines. Rents are very low and do not exceed 5 per cent, of
the usual rent of the district. In default of quarters, workers in
several coalfields, and more especially in the Moravska-Ostrava basin,
receive a special allowance. Fields belonging to the mines are
frequently rented to the workers at reduced rates.

CZECHOSLOVAKIA

125

Credit Establishments
Employees of credit establishments receive, in accordance with
their salary class, an allowance for their first three children fixed
respectively at 1,500, 2,000 and 2,500 Kc. a year. These allowances
are paid until the age of 21 years. No allowance is granted for children
capable of providing for themselves.
Agriculture
Family allowances are granted to permanent workers who lodge
with their employer and who receive a part of their earnings in kind.
But while cash wages are fixed irrespective of family responsibilities,
benefits in kind, such as housing, wood, coal, flour, cereals, potatoes,
etc., are generally fixed in accordance with family requirements.
Thus in Bohemia, benefits in kind granted to married workers are
25 per cent, greater than those allotted to unmarried persons.
3.—Statistics.
The Mining Industry in 19-33
Number of undertakings
...
...
Number of workers employed ...
...
Total amount of cash allowances (in thousands of Kc.)
Cash allowances as a percentage of total wages
...
Total value of allowances in kind (in thousands of Kc.)

SIXTH

330
85,862
28,045
3-7
38,228

PAKT

HOLIDAYS W I T H

PAY

1.—Legal Basis.
Holidays with pay for employed persons in general were introduced
by the Act of 3 April 1925 (Collection of Laws, No. 67). Prior to that
date, special measures were taken for commercial employees under the
Act of 16 January 1910 (No. 20), and for miners under the Act of
1 April 1921 (No. 262).
2.—Holidays with Pay for Employed Persons in general.
Persons who perform work or service in virtue of a contract of
employment or service and not as a subsidiary or casual occupation
are entitled to holidays with pay at the employer's expense. The
provisions of the Act do not apply to seasonal workers, agricultural or
forestry workers paid by the day and home workers, or to commercial
workers and miners, for whom special laws have been adopted.
An annual holiday of 6 days with pay is granted to workers after at
least one year's uninterrupted employment in the same undertaking
or with the same employer. After ten years' uninterrupted employment, annual leave amounts to 7 days a year, and after fifteen years
to 8 days.

126

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Apprentices are entitled to 8 days a year after six months in the
same undertaking. The Sunday and holidays occurring during the
leave period are included therein.
Military service and the time lost by an employed person on account
of sickness, accident or any other reason not caused intentionally or
through gross neglect are included in the period of employment giving
right to a holiday.
During the holiday period, employed persons are entitled to
remuneration corresponding to their average earnings for the four
weeks immediately preceding the beginning of the holiday. Output
bonuses are not paid during the holiday.
3.—Holidays with Pay for Commercial Employees.
Persons employed in a commercial undertaking mainly on commercial work or on higher grade work and persons employed mainly on
such work in the establishments scheduled in the Act are entitled to
holidays with pay at the employer's expense.
An annual holiday of at least 10 consecutive days is granted to
employees after at least six months' uninterrupted service in the same
undertaking ; after five years' employment the annual holiday amounts
to two weeks, and after fifteen years to at least three weeks.
Time lost on account of sickness or accident is not deducted from
the holiday period.
Employees continue to receive their full wages during the holiday.
4.—Holidays with Pay for Miners.
Persons employed in reserved mining undertakings or in attached
undertakings are entitled to an annual holiday of five days after one
year's uninterrupted employment in the same mining district; after
five years' service in the same district the holiday period amounts to
7 days, after ten years to 10 days, and after fifteen years to 12 days.
The Sundays and holidays occurring during the leave period are included
therein.
Military service and time lost on account of sickness are included
in the period of employment giving right to a holiday.
During the holiday period, the worker receives remuneration
corresponding to each day's holiday, including all usual supplements
with the exception of output bonuses. Workers paid by the piece
receive remuneration equal to their average earnings, and other
workers, wages equal to those of the class to which they belong.

DENMARK
SUMMARY
PAGE

F r a s i PART ;i
SECOND P A B T :

Statistics

Population...

Social Insurance

...

.. 128
...

...

... 128

I.—Workmen's Compensation ...

...

... 128

II.—Voluntary Sickness Insurance

...

... 131

III.—Compulsory Invalidity Insurance ...

... 136

IV.—Voluntary Unemployment Insurance

... 139

V.—Subsidised Benefit Schemes for Staffs of
Public Undertakings
...
...
... 143
THIRD PABT :

Social Assistance

... 145

I.—Non-Contributory Old-Age Pensions
II.—Unemployment Relief
III.—Assistance for the Infirm

... 148

IV.—Medical Assistance ...

... 150

V.—Maternity Assistance

... 164

VI.—Child Welfare

...155

VII.—Public Assistance for the Indigent...
VIII.—Shipowners' Liability
Injured Seamen
FOURTH P A B T :

FIFTH PABT :

... 145
... 147

Housing

Holidays with Pay

towards

... 159

Sick or
... 160
... 161
... 163

128

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

FIRST

PART

STATISTICS OF POPULATION1
CENSUS o r

1930

GAINFULLY OCCUPIED POPULATION, CLASSIFIED BY OCCUPATIONAL G R O U P S
AND INDUSTRIAL STATUS

Employers and
independent
workers

Occupational group
Agriculture and fishing ...
Industry
Commerce ...
Transport ...
...
...
...
Public administration and liberal
professions
Domestic and personal service ...
Total
Total population

216,000
99,000
68,000
22,000

Employed
persons
351,000
337,000
130,000
71,000

Total
567,000
436,000
198,000
93,000
112,000
194,000

—

1,600,000
3,575,000

i Approximate figures.

SECOND

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
Act of 20 May 1933, concerning insurance against the consequences
of accidents, which came into force on 1 October 1933.
2.—Scope.
Insurance of the employer's liability in case of industrial accident
is compulsory whether the worker is paid or not. The Act covers all
branches of economic activity including domestic service.
Domestic service of a temporary character (not over 240 hours in a
calendar year) is excepted, however, but in cases of accident the worker
is entitled to the ordinary benefits provided under insurance legislation,
the cost being spread over all accident insurance institutions.
Insurance of his own person is optional for any employer whose
annual income does not exceed 2,400 Kr. in the capital, 2,100 Kr. in
provincial towns, and 1,800 Kr. in rural communes. An employer
may have his wife insured against accidents if she takes an active part
in her husband's business.

129

DENMABK

3.—Insurance Institutions.
(a) Employers' mutual insurance societies recognised by the
State ;
(b) Danish or foreign insurance companies recognised by the State.
Self-insurance is allowed for the State and communes ; for private
undertakings only in exceptional cases and with special authorisation.
All persons employed at sea must be insured with the Shipowners'
Mutual Insurance Society or the Mutual Insurance Society of the
Fishing Industry.
The central administration of insurance is entrusted to the Accident
Insurance Directorate, a body subordinate to the Ministry of Social •
Affairs. The decisions taken by the Directorate in regard to claims
for compensation or the amount of compensation are open to appeal
to the Accident Insurance Council.
4.—Financial Resources.
The State pays for the central administration. The cost of
insurance proper is borne entirely by employers and any agreement
to the contrary is void.
The State nevertheless contributes :
(a) two-fifths of the insurance premiums due from an employer
on account of his workers and himself, provided that his annual
earnings are less than 2,400 Kx. in the capital, 2,100 Kr. in provincial
towns, and 1,800 Kr. in rural communes;
(6) all the compensation in the case of an accident incurred in
attempts to save human life.
5.—Benefits.
The insurance covers accidents arising out of or in the course of
employment. Compensation may be reduced or refused if the accident
is due to serious fault or wilful misconduct on the part of the worker.
Certain occupational diseases are treated as industrial accidents
if they are caused by the operations enumerated in the Act. They are
poisoning by lead, its alloys and compounds, and sequelae ; poisoning
by mercury, its amalgams and compounds, and sequelae ; anthrax
infection ; skin diseases (chronic or chronically recurring) due to the
handling of exotic woods ; diseases of the lungs due to the inhalation
of stone dust or mineral substances.
(a) Benefits in kind.
Until the question of compensation has been settled the insurance
institution is required to supply dressings, artificial limbs, spectacles,
invalid chairs, and other appliances considered necessary to ensure
successful medical treatment, diminish the effects of the accident,
or reduce the degree of incapacity for work. In addition the institution
must supply to persons who are full members of a recognised sickness
fund or a sickness benefit society any special treatment not supplied
by the sickness insurance institution which may be considered
necessary (medical, physio-therapeutical, etc., treatment).
*

G 14641

130

INTERNATIONAL SURVEY OB' SOCIAL SERVICES, 1933

(b) Cash benefits.
1. In case of temporary incapacity : A daily allowance equal to
two-thirds of the injured person's daily wage but not more than
4-75 Kr., payable as long as the injured person is unable to resume work
to the same extent as before the accident. For full members of recognised sickness funds this benefit does not become payable until the end
of the period of daily benefit from the fund (in general, thirteen weeks),
while for persons who are not full members of a sickness fund it is
in any case payable from the beginning of the fourteenth week after
the accident.
2. In case of permanent incapacity : A life annuity equal to threefifths of the annual wage if incapacity is total, and a proportionate
fraction of such annuity if the incapacity is partial. No compensation
is granted for incapacity of less than 5 per cent. If the loss of working
capacity is over 50 per cent., the annuity may, with the consent of the
injured person, be commuted for a lump sum. Such commutation
shall as a rule take place, even without the consent of the injured
person, if the loss of working capacity is less than 50 per cent. The
maximum annual wage on which compensation may be based is fixed
at 2,100 Kr.
3. In case of death : (a) A lump sum to the widow (or widower if
the wife regularly shared in his work) equal to 3*6 times the annual
earnings of the deceased ;
(b) A lump sum to each dependent child equal to 1 • 35 times the
annual wage, or, in the case of children who have lost both parents,
2 • 7 times ;
(c) If the deceased leaves neither widow nor children, the Accident
Insurance Directorate may decide whether and to what extent other
surviving dependants are to receive compensation.
The total compensation for a fatal accident may in no case exceed
6 • 3 times the annual wage of the deceased.
Provision is also made for a funeral allowance of 180 Kr.
. S.—Statistics.
Number of Insured Persons in 1932
Compulsory insurance ...
...
...
...
...
Voluntary insurance
...
...
...
...
...

...
...

621,665
15,955

State Subsidies during Year ended 31 March 1933
Accident Insurance Directorate
...
...
Subsidies to recognised insurance companies...
Compensation to State employees
...
...

...
...
...

Kr.
288,453
395,377
257,679

...
...

...
...
...

Kr.
74,488
8,664,012
474,316

Contributions collected in 1932
Compensation to municipal employees
Employers'contributions
...
...
Voluntarily insured persons' contributions

...
...

131

DENMABK
Compensation in respect of Injuries Incurred in 1932
(a) Compensation awarded b y the Accident Insurance
Directorate to workers in :
Industry
Agriculture
Shipping
Fishing ...
Other occupations

Kr.

3,208,242
1,691,883
210,028
108,004
753,608
5,971,765

Total ...
(b) Compensation paid by the State, communes or private
undertakings carrying t h e risk themselves and by
employers having omitted to fulfil their duty of
insurance ...
Total compensation

323,740
6,295,505

Nature of Compensation in 1932
Medical treatment, etc.
Daily allowances
Lump sums in case of permanent incapacity 1
L u m p sums in case of death ...
Total

Kr.
350,966
1,318,624
3,300,469
1,001,706
5,971,765

1
Under the regulations in force in 1932, compensation for permanent incapacity was always
paid in the form of a lump sum.

II.—Voluntary Sickness Insurance
1.—Legal Basis.
Social Insurance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Scope.
Admission to full membership of a recognised sickness fund (i.e. to
insurance with the right to benefit by the State subsidy) depends on
fulfilment of the following conditions among others : (1) the applicant
must be not less than 14 years or more than 60 years ; (2) he must not
be suffering from a temporary illness or a temporary recrudescence
of a chronic disease; (3) he must not be incapacitated for work for
reasons of health or bodily infirmity ; (4) he must be " without means "
and either belong to the working classes or be in similar economic
circumstances. The income and property limits on which the
definition of persons without means is based are determined every third
year by the Minister of Social Affairs with reference to the wages of
skilled workers; further, during each three-year period these limits
fluctuate with wages. From 1 October 1933 the income limits were
fixed at 4,100 to 4,200 Kr. for the capital, 3,600 Kr. for other towns,
and 2,800 Kr. for rural communes, being increased by 300 Kr. in
respect of each child under 15 years. The property limits are 9,500 Kr.
for persons living alone and 14,000 Kr. for persons with dependants.
Exceptions to these limits may be granted in special cases.
I 2

132

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

Any person who satisfies the above conditions is entitled to
admission to insurance as a full member of a sickness fund. If, owing
to his economic situation, a person cannot remain a full member of a
fund, he may, irrespective of age and state of health, claim to be transferred either to the fund's section for persons " with means " if it
has such a section, or to a State-inspected sickness benefit society.
Persons who for the same reason cannot be admitted to a recognised
sickness fund as full members may become full members of a sickness
benefit society provided that they are between 14 and 40 years of age
and satisfy certain conditions as to health. The sickness benefit
societies are also required to admit as contributing members an3r
persons who satisfy the above conditions as to age and health. Finally,
any person who satisfies the age and health conditions for becoming
a full member of a recognised sickness fund has the right to become a
contributing member of the fund. Full members of the sections for
persons with means and of sickness benefit societies and contributing
members of recognised sickness funds may as a rule become full
members of the latter funds irrespective of age and state of health if
their economic situation is in accordance with the prescribed conditions.
The Act does not make it compulsory for anyone to become a full
member of a sickness fund or a sickness benefit society. But every
Danish citizen of 21 to 60 years resident in the Kingdom who is not a
full member of a recognised sickness fund, or a full or contributing
member of a sickness benefit society, is bound to become a contributing
member of a recognised sickness fund, provided that he satisfies the
health conditions for becoming a full member of such a fund. Every
Danish citizen of 21 to 60 years of age who belongs to a recognised
sickness fund or a sickness benefit society as a full or contributing
member is usually, ipso facto, insured against invalidity and acquires
at the same time the right to a non-contributory old-age pension
provided that he satisfies the other prescribed conditions.
A married man's membership of a recognised sickness fund does
not automatically entail the insurance of his wife, who must join
separately to acquire the right to benefit. On the other hand, as a
general rule children under 15 years, including adopted children, are
insured if their parents belong to such a fund.
3.—Administration.
The principal insurance institutions are the State-recognised
sickness funds. In order to obtain recognition a fund must as a rule
have at least 200 members and must operate for a particular area
(ordinarily a commune) or a particular branch of economic activity.
State recognition means that the full members have the right to benefit
by the State subsidy, and further that the fund must submit to State
supervision. This supervision is entrusted to the Director of Sickness
Funds, who is a State official. Apart from State supervision, the
recognised sickness funds are self-governing institutions, the managing
committees of which are elected by the members.
Recognised sickness funds which on 1 October 1933 possessed a
section for full member's " with means " are entitled to keep this

UENJIAEK

133

section in being if it comprises at least 15 members. At present
about 130 funds have such sections, with an aggregate membership of
about 6,000.
The State-supervised sickness benefit societies are also selfgoverning organisations. State intervention is limited to supervision,
which is entrusted to the Director of Sickness Funds. The benefits
are fixed by the rules of each society.
4.—Financial Resources.
(a) Contributions.
The contributions of full members of recognised sickness funds arc
fixed so as to cover the expenses not met out of State and communal
subsidies and to constitute a reserve fund, which ordinarily must be
equal to the average of the expenses of the fund during the last three
years. The payment of contributions is suspended during the
member's military service. Full members of the sections for persons
with means pay in addition to the ordinary contribution a supplementary contribution amounting to not less than the State subsidy received
by the fund in respect of each member without means.
The sickness benefit societies may collect contributions at rates
considered sufficient by the Director of Sickness Funds to enable the
society to fulfil its obligations under the rules to the full members and
to constitute a reserve fund.
Contributing members of sickness funds and sickness benefit
societies pay 2 Kr. a year up to the age of 25 and 2 • 50 Kr. after that age.
(b) State subsidies.
1. An annual subsidy of 2 Kr. for each full member without means ;
2. An amount equal to one-fourth of the expenses on account of
full members without means for medical attendance, hospital treatment,
daily allowances, attendance by a midwife and maternity allowances,
dental treatment, home nursing, and maintenance in convalescent
homes. In addition the State reimburses the total expenses of the
funds on certain indispensable medicaments ;
3. Three-eighths of the amount by which the average ordinary
total expenses of the fund for members suffering from bodily infirmity
or chronic or incurable disease and for full members who at the time
the Act came into operation (1 October 1933) were over 40 years and
have been admitted to insurance since that date exceed the average
total expenses of the fund for its other members ;
4. Very reduced rates are charged to full members who are treated
in hospitals and mental hospitals belonging to the State or in tuberculosis hospitals.
(c) Communal and provincial subsidies.
1. The communes pay an amount equal to the State subsidy
mentioned under (b) 3 ;
2. In communal and provincial hospitals full members of the funds
are entitled to a reduction of at least 50 per cent, on the ordinary fees ;
3. The communes concerned grant free conveyance of sick members
to and from doctors and hospitals and of doctors to and from members.
The same rule applies to the conveyance of midwives ;

134

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

4. The Act empowers the communes to assist full members who for
the reasons enumerated in the Act are unable to pay their contributions.
Further, a certain number of communes pay voluntary subsidies to the
sickness funds.
(d) Other resources.
1. The recognised sickness funds are responsible for collecting the
contributions for invalidity insurance, in return for which they receive
a 5 per cent, commission on the sums collected ;
2. Interest on reserve and other funds ;
3. Miscellaneous income (entrance fees, net surpluses of sections
for persons with means, etc.).
5.—Benefits.
In the case of accident the right to benefit is acquired from the date
of the accident ; in the case of sickness, after six weeks' membership ;
and in maternity cases, after ten months' membership. Cash benefit
is granted only in case of sickness lasting not less than four days. The
obligation of the funds to grant medical attendance and hospital
treatment also applies to the treatment of congenital infirmity. The
right to daily allowances is limited to a period of 26 weeks in 12 consecutive months. In general, the right to benefit is limited to 60
weeks in all in the course of three consecutive financial years.
(a) Benefits in kind.
I t is compulsory for the funds to provide the following benefits
for insured persons and their children under 15 years : medical
attendance, attendance by a midwife, hospital treatment, treatment in
sanatoria for tuberculosis and mental hospitals. In addition, the funds
must pay three-fourths of the cost of insulin for patients suffering
from diabetes and of liver preparations for patients suffering from
pernicious anaemia, provided that the doctor certifies that the use of
these preparations is necessary.
The following benefits are optional but generally granted : treatment
by specialists, treatment in other curative institutions than those
mentioned above, home nursing, dental treatment, and, less often,
massage and medicinal baths. In addition, most funds refund half
the cost of medicines and two-thirds of the cost of dressings, artificial
limbs, spectacles, etc., to a total of 50 Kr. per year and per
member.
(b) Cash benefits.
A daily allowance of not less than 0-40 Kr. or more than 6 Kr.,
but not exceeding four-fifths of the average daily earnings, is granted.
For persons suffering from physical or mental infirmity or chronic
disease, the maximum is 3 Kr. a day, and for persons in receipt of an
Invalidity or old-age pension, 1 Kr. a day. Insured persons who
receive their full pay during sickness are not entitled to cash benefit.
All full members of the funds are bound to insure for the payment of

135

DENMAEK

daily benefit; but in their rules the funds may authorise insured.
women and young persons under 18 years of age not to insure for
daily benefit, in which case their contribution must be fixed at a
lower rate.
In maternity cases the fund grants a daily allowance for a fortnight
of the same amount as that which the woman concerned would have
received in case of sickness. If at the end of the fortnight she remains
confined to bed, she receives the usual sickness allowance.
If under workers' protection legislation a woman is forbidden to
work during a certain period after her confinement, she is entitled to
special allowances before and after the confinement.1
If necessary, the fund also grants medical attendance.
6.—Statistics.
Number of Insurance Institutions
Number of sickness funds
Number of sickness benefit societies ...

at 31 December 1934
1,622
17

Number of Insured Persons at 31 December 1934
Sickness funds.
Full members without means (including 43,267 suffering
from chronic disease)
Members with means ...
Contributing members...
Total

2,106,095
4,647
198,732
2,309,474

Sickness benefit societies.
Full members ...
Contributing members.

102,031
9,606
111,637

Total ...
INCOME AND E X P E N D I T U K E I N

Recognised Sickness
INCOME

EXPENDITURE

Kr.

Insured persons' contributions
... 42,363,533
State and communal subsidies
... 17,183,310
Interest on capital
975,404
Other income
... 1,282,292

Total
1

1934

Funds

... 61,804,539

Cash benefit
Hospital treatment (including sanatoria, clinics,
etc.)
...
Doctors' fees
Dental treatment ...
Home nursing, massage, etc.
Maternity benefit ...
Medicines ...
Other sickness benefit
Cost of administration
Other expenses
Total

See below, Third Part, V : " Maternity Assistance ", p . 155.

Kr.
8,795,166
11,347,885
18,458,831
2,604,382
1,356,786
2,363,500
5,978,164
797,770
7,000,077
810,375
59,512,936

136

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3
BALANCE S H E E T AT 31 D E C E M B E R

Assets :
Legacies, etc. ...
Shares and other securities
Real property ...
Savings bank deposits
Bank deposits ...
Cash balance ...
Arrears of members' contributions
Other debtors ...
Due from State and communes

1934

...

Total assets
Liabilities

Kr.
885,655
3,888,324
1,561,879
17,712,215
2,371,154
595,786
1,415,779
830,715
16,266,377
45,527,884
2,966,257

...
Balance

42,561,627

in.—Compulsory Invalidity Insurance
1.—Legal Basis.
Social Insurance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Scope.
All full and contributing members of recognised sickness funds and
sickness benefit societies are compulsoruy insured against invalidity
unless it is found that when admitted to sickness insurance they are
suffering from a frequently recurring or incurable disease or serious
infirmity. Persons suffering from such a disease or infirmity may be
admitted to invalidity insurance if the Director of Sickness Funds so
decides. If he considers that the person in question is able to contribute substantially to his maintenance, he is admitted to invalidity
insurance.
Only Danish citizens and divorced or separated wives who are or
were last married to Danish citizens are entitled to invalidity insurance
benefits.
As explained in the section on sickness insurance, every Danish
citizen of 21-60 years of age resident in Denmark is bound, if he is
not a full member of a sickness fund and if he satisfies certain conditions as to health, to become a contributing member of a sickness
fund or a full or contributing member of a sickness benefit society.
The liability to invalidity insurance thus applies to the whole population between 21 and 60 years of age provided that certain health
conditions are satisfied.
3.—Administration.
The financial resources of the insurance scheme are managed by
the Invalidity Insurance Fund, which is administered by the Director
of Sickness Funds. The payment of invalidity pensions is entrusted

DENMARK

137

to the communal authorities. A special tribunal, the Invalidity
Insurance Court, decides in each particular case whether the applicant's
earning capacity has been reduced to a degree giving him a claim to an
invalidity pension.
4.—Financial Resources.
(a) Insured persons' contributions.
Each insured person of 18 years or over must pay an annual
contribution. The rate is fixed at 6 Kr. for persons insuring before the
age of 21, and 7-20 Kr. for those insuring after that age. For husband
and wife, the rate for each is reduced to 5-16 Kr. or 6 Kr. according
as they are under or over 21. Persons in receipt of invalidity pensions
pay no contributions. Similarly, insured persons without means pay
no contributions when on military service.
(b) Employers' contributions.
Any employer bound to insure his staff against industrial accidents
must pay the invalidity insurance institution an annual contribution
of 6 Kr. for each of the workers he employs throughout the year.
(c) State subsidy.
The cost of central administration is met by the State. In addition
it defrays that part of the cost of insurance which is not met out of
insured persons' and employers' contributions and communal subsidies.
(d) Communal subsidies.
Each commune must meet the cost of one-seventh of the invalidity
pensions it pays. In addition, in the event of sickness it provides
medical attendance, curative treatment and other necessary care for
pensioners who, owing to their state of health, are unable to belong to
a sickness fund. Six-sevenths of the expenditure incurred under this
head is refunded to the commune by the Invalidity Insurance Fund.
5.—Benefits.
An insured person acquires the right to an invalidity pension when
his earning capacity falls below one-third of his customary earning
capacity. Preventive, educational, and curative measures may be
adopted in regard to insured persons who are exposed to the risk of a
loss of earning capacity of two-thirds. When an invalidity pensioner
reaches the age of 65, his invaUdity pension is replaced by an old-age
pension, calculated in the main at the same rates.
(a) Benefits in kind.
Therapeutic appliances, treatment and vocational re-training may
be given with a view to reducing the degree of invaUdity. Insured
persons must submit to the training or treatment prescribed by the
competent authorities.

138

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

(b) Cash benefits.
If the customary earning capacity is reduced by more than twothirds, an invalidity pension is paid at the following rates per year :

Married
couples where
both
husband and wife satisfy the
prescribed conditions ...
Single men or married couples where
only the husband satisfies the
conditions
Single women or married couples
where only the wife satisfies the
conditions

The Capital

Other towns
and urban
agglomeration

Kr.

Ki.

Kr.

1,266

1,080

858

822

690

546

768

648

510

Rural

If the invalidity involves a state of such helplessness that the
disabled person is in need of constant attendance and is unable to
engage in any gainful employment of practical importance, a bonus of
180 Kr., 168 Kr., or 156 Kr. according to locality is added to the
pension granted in accordance with the above rates. Apart from this
bonus, blind persons are in all cases entitled to a special bonus of 120
Kr., 112 Kr., or 104 Kr. a year according to the commune of residence.
In addition, if the pensioner is hable for the full maintenance of
children under the age of 15 years, he receives for the first child an
annual bonus of 144 Kr., 120 Kr., or 96 Kr. according to the commune
of residence, and for each additional child 72 Kr., 60 Kr., or 48 Kr.,
up to a maximum of 360 Kr., 300 Kr., or 240 Kr. according to the
commune of residence.
Among the conditions to be satisfied in order to obtain an invalidity
pension with bonuses are the following :
(1) During the last 10 years the insured person must not have
rendered his economic situation worse by any action whereby he has
deprived himself of his means of subsistence in favour of his children
or other persons.
(2) During the last 10 years he must not have been sentenced to
imprisonment for more than two years, and he must not have been
condemned during the last five years for an action generally held to
entail degradation, unless he has obtained rehabilitation.
(3) During the last 5 years he must not have notoriously led a life
generally held to be scandalous (prostitution, drunkenness, professional
vagrancy, desertion of family, etc.).
(4) During the last 3 years he must not have been in receipt of poor
relief entailing a loss of his civil rights.
(5) He must not have deliberately caused the invalidity by prolonged abuse of alcohol or narcotics.
(6) If the applicant is a member of a sickness fund or a sickness
benefit society, he must apply for admission as a full member of a
sickness fund and continue to be such a member in order to obtain
an invalidity pension.

DENMAEK

139

(7) His annual income must not exceed 40 per cent, of the basic
pension. If this limit is exceeded, 60 per cent, of the first 500 Kr. in
excess is deducted from the pension, and any further income is deducted
in full. No account is taken, however, of income in the form of a
pension, bequest, or annuity not exceeding 200 Kr. or of income
derived from his own work, up to a sum not exceeding 60 per cent.
of the basic pension. In no case may the pension be reduced by more
than two-thirds.
6.—Statistics.
Number of Insured Persons at 31 December 1934
(Approx.)

N u m b e r of i n s u r e d p e r s o n s
N u m b e r of i n v a l i d i t y p e n s i o n e r s . . .
INCOME

AND

E X P E N D I T UKE

FOB Y E A J I E N D E D

MARCH

2,200,000
29,500
L935 1

(in millions of Kr.)
INCOME

Insured persons' contributions
Employers' contributions
C o m m u n a l subsidies
I n t e r e s t ...
S t a t e subsidies ...
Total
1

9-90
3-70
306
0-04
6-45
2 3 15

Expenditure
Invalidity pensions
Benefits i n k i n d
Medical consultations...
Local a d m i n i s t r a t i o n ...

Total

2 1 00
1-51
007
0-57

2 3 15

Provisional figures.
BALANCE

AT 31 M A R C H 1935*
(in miilioiis of Kr.)

3HEET

LIABILITIES

ASSETS

Deposits ...
Deposits with sickness funds
Medical appliances
Cash balance
Total
2

Provisional figures.

...

203
3-65
0-04
6-45
12-17

Working capital
D e b t s t o c o m m u n e s ...
Medical expenditure n o t y e t
incurred
Total

^^_^^

3-50
8-62
0-05
1217
^•^^^•B

IV.—Voluntary Unemployment Insurance
1.—Legal Basis.
Act of 20 May 1933 concerning employment exchanges and
unemployment insurance, which came into force on 1 October 1933.
2.—Scope.
Insurance is open to all manual and non-manual workers in industry,
commerce, transport, shipping, agriculture, and other branches of
economic activity who are not disqualified for physical or moral
reasons. The admission of new members is limited to workers between
18 and 60 years of age whose main occupation and principal means of
subsistence is employment for a wage, and whose property does not
exceed 5,000 Kr. or 10,000 Kr. according as they are single or married.
By a decision of the Minister of Social Affairs, the property limit
may be raised to 8,000 Kr. or 15,000 Kr., as the case may be, if the
property consists wholly or partly of real estate.
Any person satisfying the conditions prescribed by the Act may
claim admission to the unemployment fund concerned.

140

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

3.—Administration.
The centra] administration is entrusted to the Director of Unemployment Insurance under the Ministry of Social Affairs. The
insurance is organised on the basis of the following institutions :
(a) State recognised unemployment funds.
State recognition involves on the one hand certain obligations,
such as that of submitting to the supervision of the Director of
Unemployment Insurance, and on the other the right to benefit by
State and communal subsidies. The funds are generally organised by
trade unions, but may group workers belonging to several industries.
In order to obtain and keep State recognition each fund must have not
less than 100 members, and the area of its competence must be at least
a province.
(b) Continuation funds recognised by the Director of Unemployment
Insurance.
These are set up by recognised unemployment funds for the
purpose of paying benefit in periods of depression to members of the
fund who have exhausted their right to benefit under its rules.
(c) The National Unemployment Fund.
This is a reserve fund formed out of employers' contributions and
State subsidies. It grants annual subsidies to the continuation funds
and subsidises relief works, courses of training for the unemployed,
and other measure's for the relief of unemployment. Finally, it may
grant loans to the unemployment funds in periods of exceptionally
severe unemployment.
4.—Financial Resources.
(a) Insured persons' contributions.
These must be fixed at such an amount as may be anticipated from
existing experience to be sufficient when taken in conjunction with the
public subsidy to pay members of the fund the benefit specified in
the rules and discharge its other liabilities in regard to unemployment
and to form a sufficient reserve. The rates vary considerably according
to the fund. Supplementary contributions may be levied if the
financial situation of the fund so requires.
Contributions to the continuation funds must as a rule be not less
than 20 per cent, of the ordinary membership contribution to the
unemployment fund until a sufficient reserve has been accumulated.
An insured person who continues to be unemployed after exhausting
his right to benefit from the unemployment fund and the continuation
fund remains a member of the unemployment fund for a further
three months without paying contributions.
• (b) Employers' contributions.
Employers pay a contribution to the National Unemployment
Fund at the rate of 4-50 Kr. for each worker they employ until the
Fund totals 12 million Kr. The rate of the contribution is only 2 Kr. for
apprentices and agricultural and forestry workers. No contributions
are paid for State employees, domestic servants and other persons living
in the household of the employer, and the employers' children under
18 vears.

DENMARK

141

(c) Stale subsidies.
The State subsidy to the unemployment funds is in inverse proportion to the earnings of the workers in each industry or occupation,
varying from 15 per cent, of the insured person's contributions in
the highest-paid occupations to 90 per cent, in the lowest-paid.
The continuation funds receive a State subsidy at the same rate
as the unemployment funds. They also receive a subsidy from the
National Unemployment Fund equal to half the total amount paid in
benefits. Finally, each continuation fund receives when it is set up
a grant of 15—25 Kr. per member varying inversely with the average
earnings of the occupation for which it is set up.
If during any financial year the balance sheet of the National
Unemployment Fund shows a deficit, the State grants the fund a
subsidy equal to the deficit, provided that it does not exceed half the
expenditure incurred by the Fund during the year in question under
the head of subsidies to continuation funds, relief works, and courses
of training for the unemployed.
(d) Communal subsidies.
The communes are required to refund to the State one-third of the
subsidies it pays to unemployment funds and continuation funds.
Further, when it is difficult for an unemployed worker to pay his
contribution, his commune of residence may pay up to half the
contribution on his behalf.
5.—Benefits.
Benefits are granted solely in the event of involuntary unemployment. No benefit is payable in the case of a strike, lockout, sickness,
invalidity or other incapacity for work, or if the applicant has left his
work without valid reason, or refuses suitable employment notified to
him by the fund, a public employment exchange or the communal
authority, including work on relief works. Insured persons in receipt
of poor relief or maintained in a public institution are not entitled to
unemployment benefit. This applies also to workers whose hours of
work are reduced by one-third or less.
To obtain the right to benefit an insured person must have belonged
to his fund for 12 months. He forfeits his claim if he has not been
employed for at least 10 months a year during the last two years
preceding the payment of benefit.
No benefit is granted during the first six days of unemployment.
There are certain special restrictions for seasonal workers.
(a) Benefits in kind.
Courses of training for unemployed workers are financed by the
National Unemployment Fund. The unemployment funds are entitled to grant the beuefit prescribed by their rules in kind.
(b) Cash benefit.
(1) A daily allowance, which may not exceed two-thirds of the
average wage in the occupation of the insured person. The minimum
is fixed at 1 Kr., the maximum at 3 Kr. for single persons and 4 Kr.
for persons with dependants, but these maxima vary to some extent

142

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

with the cost of hving. Each fund fixes the maximum number of
days of benefit, subject to the rule that it may not be less than 70 in
any 12 consecutive months. In actual fact, most funds pay the daily
allowance during 100 days in the course of 12 consecutive months.
(2) Most funds grant a special bonus for the Christmas holiday.
(3) Travelling and removal expenses.
(4) After an insured person has exhausted his right to benefit from
the unemployment fund, the continuation fund pays benefit at the
same rates and in accordance with the same rules as those fixed for
the unemployment fund. Continuation funds may not begin paying
benefit until the percentage of unemployed members of the fund
exceeds the standard percentage as defined by the Act.
6.—Statistics.
N U M B E R OF INSTITUTIONS AT 31 MARCH

Number
Unemployment funds

...

... "Ì

Continuation funds

...

•••J

1935

Local branches

Membership

3,368

389,951

INCOME AND E X P E N D I T U R E POH Y E A R ENDED
31 MARCH 19351

(a) Unemployment
Kr.
State subsidy
17,095,783
Communal subsidies
8,498,714
Arrears paid by communes
for preceding year
903,003
Insured persons' contributions
30,034,046
Interest on capital
1,059,153
Other income
64,275
57,654,974

Total

Funds
EXPENDITURE

INCOME

Kr.

Daily allowances ...
33,173,095
909,834
Christmas bonuses
Travelling and
removal
89,866
expenses ...
Administration and placing 2,901,761
Exemptions from contribu668,640
tions
455,112
Other expenses
Balance a t 31 March 1935 19,456,666
Total

57,654,974

(b) Contin
EXPENDITURE

INCOME

State subsidy
Communal subsidies
Arrears paid by communes
for preceding year
Subsidy of National Unemployment F u n d ...
Insured persons' contributions
Interest on capital
Other income
Total
i Provisional figures.

Kr.
3,113,586
1,556,793
18,812

Kr.

Daily allowances ...
12,319,642
Exemptions from contributions
141,392
Other expenses
2,092
Balance a t 31 March 1935
5,167,715

6,159,821
6,537,884
218,233
25,712
17,630,841

Total

17,630,841

143

DENMABK
(o) National Unemployment

Fund
EXPENDITURE

INCOME

Kr.

State subsidy
Employers' contributions
Receipts of undertakings
set u p for unemployed
Other income
Balance a t 31 March 1935

3,536,209
1,948,621
48,271
183

1,921,394

Kr.

Subsidies to continuation
funds
Technical
training
of
unemployed
Undertakings set u p for
unemployed
Interest on debt ...
Cost of administration
Other expenses
Total

7,454,678

Total

BALANCE S H E E T AT 31 MARCH

(a) Unemployment

7,454,678

LIABILITIES

Kr.

Sundry creditors ...
Surplus of assets ...
Total

49,086,309
(b) Continuation

Bank deposits, cash, etc
Sundry debtors

10,756,308
7,298,500

Total

18,054,808

Securities ...
B a n k deposits
Advances to unemployment
funds
182,200
Interest due
17,061
Deductions from wages in
964
respect of relief works ...
S t a t e subsidies due :
(a) for 1933-34 ...
221,137
(6) for 1934-35 ...
3,536,209
Surplus of liabilities
12,347,426
19,037,033

49,086,309

Kr.

Sundry creditors ...
Surplus of assets
Total

(o) National Urn mployment

Kr.
537,971
2,194,065

2,645,288
46,441,021

Funds

Kr.

Total

95,473
306,297
25,766
1,927

1935 1

Kr.

865,394

Funds

ASSETS

B a n k deposits, cash, etc.... 3,932,779
Sundry debtors
45,153,530
Total

6,159,821

890,275
17,164,533
18,054,808

Fund
Kr.

State advances
11,062,217
Technical training...
530,649
Undertakings set u p for
unemployed
17,957
Subsidies to continuation
funds :
(a) for 1933-34
1,138,339
(6) for 1934-35
6,159,821
Administration
' 1,953
Interest on debt ...
126,097
Total

19,037,033

Provisional figures.

V.—Subsidised Benefit Schemes for Staffs oí Public
Undertakings
1.—Legal Basis.
The Civil Servants' Act of 31 March 1931 applies to all civil servants,
including the permanent employees of the State railways and the post
and telegraph services.
The provisions concerning the pensions of communal employees
are contained in the administrative regulations adopted by each
commune.

144

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

2.—Scope.
Every civil servant is entitled to a pension for himself, his widow,
and surviving children under 18 years.
The communal pension schemes are as a rule very similar to that in
force for civil servants.
3.—Financial Resources.
The State deducts 5 per cent, from the salaries of civil servants,
but these sums are not paid into a special pension fund. The communal
regulations also provide as a rule for deductions from the salaries of
the employees concerned.
4.—Benefits.
The State pension scheme covers the risks of invalidity, old age,
and death. This applies also to the communal pension schemes.
In the event of an occupational accident, civil servants receive
compensation in accordance with the Accident Insurance Act1, but
the State and communes are not required to cover this risk by insurance. Civil servants are liable to invalidity insurance.
In addition to the statutory pensions the competent authorities
often grant special pensions in deserving cases, the amount being
fixed on the merits of each case.
The particulars regarding pensions given below relate only to civil
servants' pensions, no information being available concerning the
communal schemes.
(a) Old-age pensions.
Any civil servant on reaching the age of 65 is entitled to be retired
and receive a pension, which varies in amount with his salary and
length of service. The maximum pension is equal to 42/60 of the salary
and requires the completion of not less than 28 years of service. In
no case may the pension exceed 9,000 Kr. a year.
(b) Invalidity pensions.
Any civil servant who for reasons of health is no longer able to
fulfil his duties has the right to be retired with a pension calculated
according to his salary and length of service.
If the incapacity for work is due to an accident occurring during
his employment, he is entitled to a pension equal to two-thirds of his
salary irrespective of length of service.
(c) Survivors' pensions.
When a civil servant dies his surviving dependants (widow and
children under 18) continue to receive his salary for three months after
his death.
His widow is entitled to a pension equal to one-third of his salary.
If he also leaves children under 18, the widow's pension is increased by
180 Kr. a year for one child, 330 Kr. for two children, and 450 Kr.
for three children ; if there are more than three children, an allowance
of 100 Kr. is paid for each additional child. The widow's pension
together with the children's allowances may not exceed three-quarters
of the salary of the deceased.
1

See above, I : " Workmen's Compensation ", p. 128.

145

DENMABK

If a civil servant leaves motherless children, each child is entitled
up to the age of 18 to a pension of 270 Kr. a year.
5.—Statistics.
The expenditure of the State on pensions, survivors' pensions, and
special allowances to the staffs of the State railways and the post and
telegraph services during the year ended 31 March 1935 was as
follows :
Xumber of beneficiaries

State expenditure

State
railways

Post and
telegraph
services

State
railways

Post and
telegraph
services

Pensions

3,515

2,236

Kr.
7,918,109

Kr.
2,936,532

Survivors' pensions

3,512

1,482

3,378,107

1,303,207

169

143

83,976

114,098

Special allowances

Statistics of communal expenditure on pensions are not available.

T H I R D PART

SOCIAL ASSISTANCE
I.—Non-Contributory Old-Age Pensions
1.—Legal Basis.
Social Insurance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Beneficiaries.
Every Danish citizen resident in Denmark is entitled to receive
an old-age pension provided hè fulfils certain conditions.
(a) Membership of a sickness fand.—The applicant for a pension
must be a full or contributing member of a sickness fund or prove t h a t
his application for admission to such a fund was refused for reasons of
health. If he is a contributing member of a sickness fund or a member
of a sickness benefit society, he must apply for full membership of a
sickness fund a n d continue to be a full member.
(b) Pensionable age.—The pension is normally granted a t the age
of 65 years, b u t under certain conditions m a y be given a t 60 years if
this is considered desirable for reasons of health or other special
circumstances.
(e) Incoine limit.—The right to a pension is subject t o t h e condition
t h a t the beneficiary's means m a y not exceed certain limits. The
regulations in regard to these limits and the deductions made from
x

G 14641

146

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

pensions when they are exceeded are the same as those governing the
payment of invalidity pensions1, except that the old-age pension is
withdrawn if the deductions bring it down to less than one-twelfth of
the basic pension, and that income from the pensioner's own work is
treated as income from other sources.
(d) Other conditions.—The right to a pension is also subject to the
same " moral " conditions as those fixed for the right to an invaUdity
pension2.
3.—Administration.
The social committee of the commune of residence decides whether
the conditions for obtaining the pension have been fulfilled. I t is
also responsible for paying the pensions awarded.
Provision is made for appeal procedure before the Ministry of
Social Affairs.
4.—Financial Resources.
Each commune is responsible for defraying the cost of oneseventh of the pensions awarded. Two-sevenths are spread over all
the communes of the country, and the remaining four-sevenths are
met by the State.
5.—Benefits.
(a) In cash.
The annual pension is fixed as follows :
To a married couple where both
partners satisfy the conditions
for obtaining the pension
The old-age pension is increased
in the event of a delay in sending
in the application until the elder
partner has attained the age of :
66 years, ...
...
... up to
68 years, ...
...
... „ „
70 years or more,
... ,, ,,
To a single man, or to a married
couple where only the husband
satisfies the conditions
The old-age pension is increased
in casé of delay as above until
the age of :
66 years,
...
... up to
68 years,
...
... „ „
70 years or more,
,
To a single woman, or to a married
couple where only t h e wife
satisfies the conditions ...
The old-age pension is increased
in case of delay as above until
the age of :
66 years,
...
... up to
68 years,
...
... „ „
70 years or more,
... „ ,,

In the
capital
Kr.

In other
towns
Kr.

In rural
communes
Kr.

1,086

912

702

1,140
1,194
1,248

960
1,002
1,050

738
774
810

732

606

468

768
804
840

636
666
696

492
516
540

678

564

432

714
750
786

594
618
648

456
480
504

1
See above, Second Part, III : " Compulsory Invalidity Insurance", 5 (ö),
6, p . 138.
* Ibid., 5 (6) 1-4, p . 138.

DENMAKK

147

These rates vary to a certain extent with the cost-of-living index
number.
Pensioners who are responsible for the full maintenance of children
under 15 years of age are entitled to bonuses at the same rates as those
fixed for the holders of invalidity pensions.1
When at the age of 65 an invalidity pension is replaced by an old-age
pension, the latter is calculated at the same rate as the invalidity
pension for which it is substituted, provided that the conditions for
receiving the pension and bonuses continue to be fulfilled.
If the communal authority concerned considers that the circumstances of a pensioner are particularly unfavourable (especially in the
case of very old or infirm pensioners), it may grant a personal bonus^
the amount of which it fixes according to the merits of the case. The
total amount allocated by the communal authority to such bonuses,
however, may not exceed the limit fixed by the Act.
(b) In kind.
Maintenance in a communal home for the aged may be substituted
for payment of the pension, but in this case the pensioner remains free
to dispose of part of his cash pension (120 Kr., 90 Kr., or 60 Kr.,
according to the commune of residence).
In case of sickness the commune grants pensioners who cannot
remain full members of a sickness fund the necessary medical attendance, curative treatment and care.
6.—Statistics.
Number of old-age pensions a t 31 March 1935
Number of beneficiaries ...
...
...
...
Pensioners in homes for the aged
...
...

...
...
...

... . 107,500*
...
135,000*
...
7,000

INCOME AND E X P E N D I T U R E FOR Y E A R ENDED 31 MARCH

1935

(in million Kr.)
INCOME

State subsidy
...
Communal subsidies
Total

EXPENDITURE

...
...

44-4
33-3
77-7

Pensions
...
Medical attendance
Homes for the aged
Total

...
...
...

67-3
2-7
7-7
77-7

H.—Unemployment Belief
Subsidies for Unemployed Young Persons.—Under the Act of
27 March 1934 the Minister of Social Affairs may grant special
subsidies to works organised by communes, associations (including
trade unions), or other bodies to combat unemployment among young
persons (as a rule between 18 and 22 years of age). The works must
ordinarily combine manual occupation, instruction, and recreation.
The subsidy consists of a grant, which as a rule may not exceed 2 • 50 Kr.
per day and per person given employment. Under certain conditions
a grant is made to meet the initial expenses of organising the works.
The cost is borne as to two-thirds by the State and as to one-third by
the communes.
1
»See above, Second Part, I I I : " Compulsory Invalidity Insurance ", 5 (6),
2
p . 138.
Excluding pensioners in homes for t h e aged.
3
Including 20,500 pensioners' wives (husbands).

K 2

148

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
STATISTICS FOR Y E A H ENDED 31 MARCH

Number of works organised
...
Number of days of work provided
Credits granted by the State
Communal expenditure

...
...

1935

...
...
approx.
„
„

44
330,000
K r . 565,000
Kr. 285,000

m.—Assistance for the Infirm
A.—GENERAL

SCHEME

1.—Legal Basis.
Public Assistance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Beneficiaries.
(a) Pull members of recognised sickness funds who, owing to
chronic or frequently recurring disease or infirmity, cannot obtain
admission to invalidity insurance, whose working capacity is reduced
by more than two-thirds, and who are in a state of need ;
(b) Persons not insured against sickness who suffer from a chronic
or frequently recurring disease or infirmity, provided that their working
capacity is reduced by not less than two-thirds, that they are in a
state of need, and that they show proof that during the last three years
they have not satisfied the health conditions for admission to sickness
insurance.
3.—Administration.
Assistance is administered by the social committee of the commune
of residence.
4.—Financial Resources.
The commune of residence defrays one-third of the cost of
assistance given, the remaining two-thirds being spread over all the
communes of the country.
5.—Benefits.
(a) In kind : curative treatment and necessary care ;
(b) In cash : necessary assistance for the maintenance of the person
in question and his family. The amount granted may not exceed the
benefits that he would have received under the invalidity insurance
scheme if he had been admitted.
6.—Statistics.
No statistics are available.
B.—SPECIAL

SCHEMES FOR THE CRIPPLED, BLIND, DEAF,
MENTALLY DEFICIENT, ETC.

1.—Legal Basis.
Public Assistance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Beneficiaries.
Persons suffering from one of the infirmities mentioned below
(under 5) and in a state of need, if they are not entitled to benefit
under social insurance legislation.

DENMARK

149

3.—Administration.
The social committee of the commune of residence must see to it
that the persons suffering from the infirmities mentioned below
benefit by the measures introduced on their behalf.
The State has set up or subsidised a certain number of institutions
for various kinds of infirmity. There are at present two institutions
for cripples (562 beds), five for the blind (314 beds), five for the deaf
and dumb (375 beds), one for persons suffering from defects of speech
(85 beds), four for the mentally deficient (5,454 beds) and four for
epileptics (610 beds).
4.—Financial Resources.
The State meets the cost of the maintenance, training, curative
treatment, and other care of persons assisted in institutions belonging
to or recognised by it, or placed with families under the supervision of
such an institution. The remaining expenditure is met as to one-third
by the commune of residence, and as to two-thirds by all the communes
of the country together.
5.—Benefits.
(a) Cripples.
Maintenance, special medical treatment, vocational education or retraining in a public institution for cripples. If the person in question
is not admitted to an institution, he is entitled to assistance -with a
view to obtaining or repairing the artificial limbs, bandages, etc.,
he requires, and in exceptional cases the tools or other articles he
needs in order to earn his living. Before approving measures of this
kind, the competent authority must consult the Invalidity Insurance
Court on the question whether the applicant is entitled to benefit
under the Social Insurance Act.
(b) The blind.
Persons who are blind or whose vision is seriously reduced are
entitled to special training or maintenance in an institution for the
blind, or to other appropriate forms of assistance.
The dependants of persons in receipt of such assistance are entitled,
in case of need, to an allowance, which may not exceed the invalidity
or old-age pension to which the person in question might have been
entitled.
Blind persons whose working capacity is not sufficiently reduced
to give them a claim to an invalidity pension, but who satisfy the
moral conditions for obtaining such a pension, are entitled to a special
annual allowance of 240 Kr. in the capital, 224 Kr. in other towns, and
208 Kr. in rural communes.
(c) The deaf and dumb.
Persons who are deaf or whose hearing is seriously reduced may
either be placed in institutions for the deaf and dumb, where they
receive maintenance, education and training, or be admitted to courses
of training in lip reading.

150

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

(d) Persons suffering from defects of speech.
Persons whose working capacity is substantially reduced owing to
a defect of speech receive medical or other appropriate treatment.
(e) The mentally deficient.
Mentally deficient persons who cannot safely be left to themselves
or must for other reasons be cared for in a suitable institution must
be placed in an institution for the mentally deficient or boarded with
a family under the supervision of such an institution. 1
(f) Epileptics.
Epileptics are treated in a recognised institution if there is reason
to believe that their infirmity will be aggravated for lack of proper
treatment.
6.—Statistics.
Number

of Persons Assisted and Expetidiiure

during Year ended 31 March 1935

Number
assisted

Expenditure in thousands
of Kr.
State

Cripples
The blind
The deaf and dumb
Persons suffering from defects of
speech
The mentally deficient
Epileptics ...

Communal

522
315
375

690
744
750

90
4
20

85
7,769
610

160
6,610
908

7
900

IV.—Medical Assistance
A.—MEASURES

SUPPLEMENTING SICKNESS

INSURANCE

1.—Legal Basis.
Public Assistance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Beneficiaries.
Full members of recognised sickness funds, and their children
under 14 years, who have temporarily or finally exhausted their
right to sickness insurance benefit under the rules of the fund and are
1
An Act of 16 May 1934 contains provisions concerning the measures t h a t
can be taken with regard t o the mentally deficient, including sterilisation.
Certain measures of assistance may even be taken without t h e consent of the
person concerned. During t h e first year after this Act came into force 12
mentally deficient persons were sterilised. The expenditure of the State under
this head was 41,750 K r .

151

DENMARK.

in need of assistance owing to sickness or the reduction of their
working capacity by sickness are entitled to assistance provided that
they are Danish citizens and satisfy certain conditions.
3.—Administration.
The assistance is administered by the social committee of the
commune of residence.
4.—Financial Resources.
The commune of residence meets one-third of the cost and the
remainder is spread over all the communes of the country.
5.—Benefits.
The assistance may not exceed the daily benefit that the sickness
fund paid to the assisted person during the year in which his right to
benefit was exhausted or during the two preceding years.
I t consists of an allowance to meet the cost of curative treatment
and other necessary care and to maintain the assisted person and his
family.
6.—Statistics.
Number of persons assisted during year ended
31 March 1935
Communal expenditure
...
...
...

B.—OTHER

approx.
7,000
„
1,200,000 Kr.

FORMS OF MEDICAI ASSISTANCE

1.—Free Medical Treatment, etc.
Under the Public Assistance Act of 20 May 1933 the social committee of the commune of residence must, in cases of need, supply
medical treatment, including attendance by a midwife, surgical treatment by specialists, and dental treatment, so far as this is necessitated
by the assisted person's state of health. I t must also supply the
medicines certified to be necessary by the doctor treating the case,
and the massage, etc., considered necessary to maintain the assisted
person's working capacity. The commune must also provide home
nursing for not more than 14 days if this is considered necessary,
especially for the purpose of avoiding hospital treatment.
The expenditure of the communes during the financial year ended
31 March 1935 was about 740,000 Kr.
2.—Free Hospital Treatment.
Full members of recognised sickness funds and other persons
without means are treated free of charge in State, provincial, and
communal hospitals. Free hospital treatment is provided in particular
for indigent persons suffering from chronic diseases.

152

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Statistics1
Number of public hospitals at beginning of 1934
Number of beds

...

193
20,949

3.—Treatment of Tuberculosis.

(a) State action against tuberculosis is governed by the Act of
29 March 1924 under which the State subsidises sanatoria and other
institutions for the treatment of tuberculosis and pays three-quarters
of the cost of maintenance and treatment of persons without means,
that is to say, full members of recognised siekness funds and their
children under 15 years and persons whose standard of life would suffer
if they had to meet the cost of treatment themselves. The subsidies
have made it possible to reduce the hospital fee in these cases to an
amount varying between 1 Kr. and 1-50 Kr. a day, which is paid by
the sickness fund or if need be by the commune of residence. Treatment
is given as long as it is considered necessary.
In addition, the State grants subsidies to tuberculosis dispensaries,
provided that the communes pay an equal amount.
The tuberculosis institutions have altogether about 3,800 beds
(one per 1,000 inhabitants) and treat about 14,000 patients a year.
About 3,500 fresh pulmonary cases and 2,000 deaths from tuberculosis
of all forms are reported each year in the whole population.
The institutions consist of 14 sanatoria for pulmonary tuberculosis
(1.356 beds), 33 hospitals, mostly provincial and communal, for
advanced cases (1,057 beds), 14 seaside sanatoria for children suffering
from scrofula (670 beds), 3 seaside hospitals for advanced cases of
surgical tuberculosis, scrofula, and lupus (535 beds), 6 nursing homes
(150 beds), and a few convalescent homes.
(6) The commune of residence is responsible for taking the necessary
measures in order that a tuberculous person may receive appropriate
treatment either at home or in one of the above-mentioned institutions.
In cases of need, it must meet that part of the expenditure which is
not covered by the State subsidy and also provide for the transport
and necessary equipment of the patient.
(c) In cases of need the commune must provide assistance for
the maintenance of the dependants of persons being treated for
tuberculosis. The allowance granted may in no case exceed the
invalidity or old-age pension.
1
I t is impossible to give tbe total expenditure of the State, provinces, and
communes on public hospitals. Apart from the cost of treating patients, which
is fixed according to a schedule for each hospital (this cost cannot be given in
detail), the following amounts (approximate figures) were allocated to the public
hospitals by the State, provinces, and communes during the vear ended
31 March 1934 :
Million Kr.
The capital
13
Other towns
...
...
...
...
...
4
Provinces
...
...
...
...
...
10
Total
27

I t should be noted, however, t h a t these figures also include other items of
expenditure on public health and medical assistance.

DENMARK

153

(d) If a tuberculous person is treated in one of the institutions
mentioned above, the commune of residence may, subject to the
fulfilment of certain conditions, either p a y him cash relief during not
more t h a n three months or provide for his stay in a convalescent home
during the same period.
Statistics
Expenditure during Year ended 31 March 1935
State expenditure
3,127,064 Kr.
Communal expenditure
...
...
...
... approx. 1,000,000 Kr.

4.—Treatment of Cancer.
Persons suffering from cancer, lupus and similar diseases who are
treated in an institution belonging to or recognised b y the State
receive benefits similar to those mentioned under 3 (b), (c), and (d)
above.
Statistics
The expenditure of the State and communes is included in the
expenditure shown under 3 above.
5.—Treatment of the Mentally Deficient.
(a) Under the Public Assistance Act of 20 May 1933, the State
undertakes the maintenance, curative treatment, a n d care of mentally
deficient persons without means in the mental hospitals belonging to
or recognised b y the State, and of mentally deficient persons boarded
out under the supervision of the competent authorities. The State
has set up 11 mental hospitals and the municipality of Copenhagen one.
The number of beds in these institutions is 7,710. I n addition, a
number of general State, provincial, a n d communal hospitals reserve
part of their services for the treatment of mental diseases. Finally,
some 1,200 mentally deficient persons are boarded out with families
under the supervision of the State or Copenhagen mental hospitals.
(6) The social committee of the commune of residence is required
in cases of need t o see to it t h a t mentally deficient persons receive the
prescribed maintenance, curative treatment, and care.
(c) If a mentally deficient person who benefits by the measures
mentioned above under (a) has dependants, the latter are entitled t o
assistance from the commune of residence, which m a y not exceed in
amount the invalidity or old-age pension to which he might have been
entitled.
(d) Expenditure other t h a n t h a t resulting from the measures
mentioned under (a) must be met by the communes—as to one-third
b y the commune of residence and as t o the remaining two-thirds b y
all the communes in the country.
Statistics for Year ended 31 March 1933
Number of mentally deficient persons :
State mental hospitals
...
...
...
...
Copenhagen Mental Hospital
...
...
...
State expenditure ... '
Communal expenditure ...
...
...
approx.

6,200
2,083
9,427,212 Kr.
100,000 Kr.

154

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Treatment oí Infectious Diseases.
Under the Act of 10 May 1915, hospital treatment is compulsory
and gratuitous in cases of certain epidemic diseases defined as
" dangerous " (plague, cholera, yellow fever, smallpox, dysentery,
typhus and leprosy). The whole of the cost is borne by the State.
Free hospital treatment is provided for cases of certain other
epidemic diseases (typhoid and paratyphoid fevers, dysenteric diarrhoea,
diphtheria, scarlet fever, acute poliomyelitis, cerebro-spinal meningitis)
provided that application for admission is made immediately after
diagnosis. The whole of the cost is borne by the State.
Statistics
State expenditure for year ended 31 March 1935 ...

1,240,580 Kr.

7. Treatment of Venereal Diseases.
Under the Act of 30 March 1906, any person suffering from a
venereal disease must submit to medical treatment, which is granted
free of charge, irrespective of the means of the patient, in accordance
with the Public Assistance Act. The whole of the cost is borne by the
State.
Statistics
State expenditure for year ended 31 March 1935

...

6,838,580 Kr.

V.—Maternity Assistance
1.—Legal Basis.
Public Assistance Act of 20 May 1933 and Social Insurance Act of
the same date, both of which came into force on 1 October 1933.
2.—Beneficiaries.
Any woman who is in a state of need and is not a full member of a
recognised sickness fund.
3.—Administration.
The social committee of the commune of residence is responsible
for giving assistance. The sickness fund concerned provides for the
benefits mentioned below under 5 (b) 2.
4.—Financial Resources.
The cost of maternity assistance is borne by the communes except
advances made against the statutory contributions (alimony) due from
the father of the child. If the father defaults, these advances are
borne by the State.
5.—Benefits.
(a) In kind.
1. Attendance by a midwife and, if necessary, medical attendance
or, within the limit of available accommodation, treatment in one of
the two State maternity homes. If it is considered imprudent to let
the woman be confined at home, she is entitled to treatment in a
hospital or a communal maternity ward.

DENMARK

155

2. A woman who nurses her child may, in case of need and if ordered
by the doctor, receive a litre of milk a day during six months after the
confinement. This benefit may also be granted if the doctor certifies
that she is unable to nurse her child.
(b) In cash.
1. A woman who, under legislation concerning illegitimate children
or a decision of the competent authority (in the case of divorced,
separated or deserted women), is entitled to receive from the father
of the child a financial contribution towards the cost of her confinement
and her maintenance before and after childbirth (alimony) may ask
the commune of residence for an advance on this contribution, at the
rate of 85 Kr., 75 Kr. or 67 Kr. according to the commune of residence.
This advance is refunded to the commune by the State.
2. A woman who, under workers' protection legislation, is forbidden to work during a certain period after her confinement (at
present four weeks) is entitled, if she is a full member of a recognised
sickness fund, to a daily allowance of 3 Kr., 2-40 Kr. or 1-80 Kr.
according to the commune of residence during the third and fourth
weeks after her confinement. During the first two weeks she usually
receives daily benefit from the sickness fund. The allowance is
continued up to the end of the sixth week if she stays away from work
in order to be able to nurse her child. She is entitled to an allowance
at the same rate for a period of not more than eight weeks before the
confinement if she can produce a medical certificate attesting that she
cannot go on working without injuring her health or that of the child.
6.—Statistics.
Number of women assisted in year ended 31 March 1935 approx. 7,000
State expenditure
72,000 Kr.
Communal expenditure
...
...
...
...
... 100,000 Kr.

VI.—Child Welfare
A.—CHILD

CARE AND EDUCATION

1.—Legal Basis.
Public Assistance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Administration.
The administration of measures for the protection of children is
entrusted in the first place to a sub-committee, the child care committee, set up by the communal council of each commune. Any
decision of this committee to remove a child from its parents must be
approved by the judge of first instance with competence for the area
in which the commune is situated. In Copenhagen child care is entrusted to a special authority. The general supervision of the administration of child care measures is entrusted to the National Board
for Child Care, the members of which are appointed by the Government

156

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

and the Rigsdag. This Board is also required to give advice and instructions to the communal sub-committees. It acts as an appeal
authority in questions of the removal of children from their homes, and
-ts approval is necessary to give effect to certain decisions of the local
authorities.
The State owns a certain number of child care institutions and
subsidises and supervises a large number. The following table shows
the institutions now in existence :
Number of
institutions
Institutions for preventive child care (creches,
day nurseries, etc.)
Educational centres (for prolonged stay)
Observation centres (for short stay)
Institutions for refractory children
Homes for backward children under 14 years
Total

Number of
beds

280
189
107
22
19

11,300
4,314
2,760
1,117
327

617

19,917

3.—Financial Resources.
The State assumes the cost of the education and maintenance of
children under 15 years in State educational centres or institutions for
persons suffering from physical or mental infirmity and of the education and maintenance of certain other categories of children under
15 years who have been removed from their homes. The remaining
expenditure is met by the communes. Parents are required to contribute to the maintenance of their children who have been removed
from home.
4.—Organisation of Assistance.
(a) Supervision of children boarded out, etc.
Children under 14 years who are boarded out for payment, illegitimate children under 7 years, children under 18 years living with
parents in receipt of communal relief or poor relief, children for whose
maintenance the public authorities make advances charged to alimony,
and children in receipt of assistance for orphans or for fatherless or
motherless children are subject to special supervision, which may be
extended to other categories. As a rule this supervision is entrusted
to private individuals, who are required to undertake these duties by
the social committee. Every citizen must undertake such duties free
of charge for a period of not more than four years.
No person may accept a child under 14 years for board against
payment without previous authorisation of the competent social
committee.
(b) Education of children away from home.
The communal child care committees must see to it that, where
necessary in the interests of the physical and moral health of children
under 18 years, they are removed from home : (i) if they are of difficult
character or ill-conducted ; (ii) if they are exposed to immoral influences
or desertion owing to the character of their parents ; or, (iii) if they are
ill-treated by their parents. The social committee must also take the

DENMARK

157

necessary steps t o place the children removed from home either in a
suitable family or in apprenticeship or service or an educational centre.
The care so given usually ceases when t h e child reaches the age of 18,
b u t may be extended u p t o the age of 2 1 . Instead of removing the
child from home, the committee may confine itself to warning the
parents or appointing a guardian to watch over t h e child. I t m a y
also require the parents to take certain measures with regard to the
education and recreation of their children.
The child care committees are also responsible for removing children
suffering from physical or mental infirmity from home in order t h a t
t h e y m a y be treated or educated in an appropriate institution.
5.—Statistics.
Number of children removed from home during
year ended 31 March 1935
...
...
...
Total number of children removed from home
under above regulations
...
...
...
State expenditure
Communal expenditure
...
...
...
B.—ILLEGITIMATE

approx.
.,

1,000

5,500
3,600,000 K r .
2,200,000 ,,

CHILDBEN

1.—Legal Basis.
Act of 27 May 1908, as amended on 29 April 1913 ; Public Assistance
Act of 20 May 1933.
2.—Beneficiaries.
The parents of an illegitimate child must provide for its maintenance,
t h e father a t the rate of three-fifths of the normal cost, the mother at
the rate of two-fifths. If the father does not fulfil his obligations, the
mother may, subject to certain conditions, apply to the commune of
residence for an advance on the ahmony due from the father. The
father has t h e same right if it is he who exercises parental authority.
If such authority is entrusted to a third party, the latter may apply
to the commune for an advance charged to the alimony due from
either parent.
3.—Administration.
Cases of disputed paternity are settled by the ordinary courts.
The social committee of the commune concerned is responsible in
certain cases for making an advance charged to the alimony due from
the parents.
4.—Financial Resources.
The State refunds to the communes any part of the advances they
make which they have been unable to recover from the parents. A
person who fails to pay all or p a r t of his alimony contribution is liable
to the loss of certain civil rights.
5.—Benefits.
The advances made by the communes may not exceed the a m o u n t
of the alimony due and are subject to maxima fixed a t 240 Kr. a year
in the capital, 204 Kr. in other towns, and 168 K r . in rural communes
in the case of alimony due from the father, and 160 Kr., 138 Kr. and

158

INTERNATIONAL SURVEY OF SOCIAIi SERVICES, 1 9 3 3

112 Kr. respectively in that of alimony due from the mother. During
the child's first two years of life these rates are increased by one-quarter.
They are reduced if" the mother's income (or the father's, if the child
lives with him) exceeds certain limits.
—Statistics.
State expenditure during the year ended 31 March 1935
C.—CHILDREN

4,200,000 K r .

OF S E P A R A T E D , D I V O R C E D A N D D E S E R T E D
PERSONS

1.—Legal Basis.
Public Assistance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Organisation oí Assistance.
A divorced or separated woman may claim, under conditions
similar to those described above under B, an advance charged to the
alimony due from her former husband under a judicial or administrative
decision for the maintenance of their legitimate child. A divorced
or separated man has the same right if his former wife is required to
pay alimony. The rates are fixed at 268 Kr., 228 Kr., and 184 Kr.,
according to the commune of residence for the husband, and 132 Kr.,
114 Kr., and 96 Kr. respectively for the wife. They are increased
by one-quarter during the child's first two years of life.
3.—Financial Resources.
The State refunds to the communes any part of the advances they
make which they have not been able to recover from the parents.
4.—Statistics.
State expenditure during year ended 31 March 1935
D.—ORPHANS

...

2,600,000 K r .

AND F A T H E R L E S S OR M O T H E R L E S S C H I L D R E N

1.—Legal Basis.
Public Assistance Act of 20 May 1933, which came into force on
1 October 1933.
2.—Beneficiaries.
Any widow whose annual income falls below a certain maximum is
entitled to assistance for the maintenance and education of her legitimate children under 18 years. Under similar conditions the competent authority may grant assistance to a widower with particularly
heavy family responsibilities. Orphans under 18 years are also
entitled to assistance if they are without means.
3.—Administration.
This assistance is entrusted to the social committee of the commune
of residence.
4.—Financial Resources.
The State is responsible for four-sevenths of the cost of the assistance
given by the communes, the remaining three-sevenths being met by
the commune concerned.

159

DENMARK

5.—Benefits.
(a) Fatherless or motherless children.
The assistance is given at the same rates as those fixed for advances
made by the communes charged to the alimony due from the father
of an illegitimate child1.
(b) Orphans.
The assistance given to these children is calculated at double the
rates provided for the advances charged to the alimony due for the
children of divorced or separated persons2.
6.—Statistics.
Number of children assisted in year ended
31 March 1935
State expenditure during year
...
...
Communal expenditure during year ...
...
E.—MEALS

approx.
20,000
,,
1,960,000 K r .
,,
1,470,000 „

TOR SCHOOL-CHILDBEN

1.—Organisation oí Assistance.
Under the Public Assistance Act of 20 May 1933, the communal
authorities may decide that in schools where domestic economy forms
a part of the curriculum, food prepared in the school kitchens at communal expense shall be served to the pupils. Further, the social
committee must see to it that underfed children receive a hot meal
every day during the months November to March. Finally, the
communes may grant subsidies to private organisations which undertake
to serve meals to poor school-children.
The State allocates 100,000 Kr. a year to reimbursing part of the
communal expenditure on meals for school-children.
2.—Statistics.
State expenditure during year ended 31 March 1935
Communal expenditure
...
...
...
...

...
...

100,000 K r .
230,000 „

VII.—Public Assistance for the Indigent
A.—COMMUNAL

RELIEF

Under the Public Assistance Act of 20 May 1933, the commune is
bound to assist persons unable to support themselves or their families
and to provide for the necessary assistance in case of sickness. If the
person in question has no claim to assistance under the provisions
described under heads I to VI above, the assistance given is treated as
" communal relief ", which entails the obligation to repay the amount
received to the extent that the social committee considers this possible
without injury to the economic situation of the assisted person. Under
certain conditions, however, the commune may waive its claim to
repayment if the assisted person has shown himself able to support
himself during not less than six months, and it is bound to waive its
claim if three years have passed during which the assisted person
has had no recourse to communal relief. The relief may be given in
cash or in kind.
1

See above, B : " Illegitimate Children ", 5, p . 157.
See above, C : " Children of Separated, Divorced, and Deserted Persons ",
2, p . 158.
2

160

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The amount of relief given is left to the discretion of the social
committee of the commune concerned, but m a y not exceed what the
person in question would have received under social insurance legislation or the provisions described above under heads I to VI if he had
satisfied the prescribed conditions.
The fact of having received communal relief does not entail the loss
of civil. rights.
The whole cost of communal relief is m e t by the communes (onethird by the commune of residence, the remaining two-thirds being
spread over all the communes of the country).
Statistics
Number of persons assisted from 1 October
1933 to 31 March 1934
Communal expenditure during year ended
31 March 1935
B.—POOB

approx.

160,000

„

52,000,000 Kr.

RELIEF

Poor relief is in substance reserved for the following categories :
1. Persons who for a prolonged period have been in receipt of communal
relief and whose state of need is to be ascribed to their unwillingness to
support themselves ; 2. persons who seriously neglect their obligation
t o maintain their families; 3. alcoholists; 4. professional vagrants,
beggars, etc.
The form of relief varies with the category to which the assisted
person belongs. I n certain cases it is combined with measures of
restraint (internment in a n inebriates' home or workhouse).
The fact of having received poor relief entails, in addition to the
obligation to refund t h e amounts given, the loss of the right to vote and
eligibility for various public bodies, and of the right t o an invalidity
or old-age pension and the various forms of assistance described above
under heads I to VI.
An assisted person who for three years has not received poor relief
m a y claim t h a t the commune in question shall waive its right to be
repaid sums granted to him before such period. I n that case the
various other effects of having drawn poor relief are also annulled.
The cost of poor relief is met by the communes alone (one-third by
the commune of residence, the remaining two-thirds being spread over
all the communes of the country).
Statistics
Number of persons in receipt of poor relief
during year ended 31 March 1935 ...
...
Communal expenditure during year

approx.
14,000
„
8,000,000 Kr.

vm.—Shipowners' Liability towards Sick or Injured
Seamen
1.—Legal Basis.
Seamen's Act of 1 May 1923; Notification of 7 December 1923
defining the shipowners' liability towards sick or injured seamen.

161

DENMABK

2.—Scope.
The Act applies to all seamen belonging to the crew of a Danish
merchant ship or engaged by the shipowner or master. Certain
provisions apply also to other persons employed on board ship.
3.—Benefits.
All sick or injured seamen are entitled to care on board or ashore,
including maintenance, medical attention, and medicines. The cost
is borne by the shipowner until the seaman's articles of agreement
have expired.
A seaman who is sick at the time of discharge is entitled to attendance at the shipowner's expense for not more than six weeks, or if he is
a Danish citizen and under care abroad, 12 weeks. If he is left behind
abroad, he is further entitled to a free passage with maintenance to
his domicile in Denmark. These provisions do not apply if he incurred
the sickness or injury through his own fault or concealed it at the time
of his engagement.
Expenses for attendance and repatriation in case of tuberculosis
or venereal disease, however, are defrayed by the State.
Burial expenses are defrayed by the shipowner if the seaman dies
during employment or while under treatment at the shipowner's
expense. If he dies while under treatment at the expense of the State,
the burial expenses are borne by the State.
The shipowner is further required to pay an additional month's
wages to the widow or child of a Danish seaman who has been in his
service during the six months preceding his death.

FOURTH PART
HOUSING
1.—Legal Basis.
Act of 4 April 1928 ; Act of 11 April 1933, as amended on 1 October
1934 and 30 March 1935.
2.—Authorities and Undertakings concerned in Building.
Under the Act of 4 April 1928 the competent authority may grant
exemption from stamp duties, registration fees, and other inland
revenue taxes on deeds of sale, mortgages, etc. The Act also provides
for exemption from land tax up to 1943. These provisions apply
especially to houses consisting of small flats.
The Act of 11 April 1933, as amended, set up for the period up to
31 March 1936 a system of State loans for the construction of houses
consisting of dwellings to meet the requirements of persons of small
means and for the acquisition of the land needed for such houses. The
loans are guaranteed by mortgages which rank after the other mortgage
loans obtained. The percentage of the cost met by such other loans
must be as high as possible compared with that met out of the State
•x

G 1-I641

162

INTERNATIONAL SURVEY OB' SOCIAL SERVICES, 1 9 3 3

loan. State loans may be granted to communes, co-operative building
societies, private persons building a house for their own use (though it
may also include a flat to be let), and private persons building blocks of
flats. The Act limits the proportion of the State loans to the following
percentages of the cost of construction or value of the building :
1. Loans to communes : 40 per cent. ; the total mortgages, including the State mortgage, may not exceed 95 per cent.
2. Loans to co-operative building societies : 30 per cent. ; the
total mortgages, including the State mortgage, may not exceed 85 per
cent. These rates may be increased up to 40 per cent, and 95 per cent.
respectively, provided that the commune concerned guarantees the
fraction of the State loan in excess of the normal maximum of 85 per
cent.
3. Loans to private persons building a house for their own use :
30 per cent. ; the total mortgages, including the State mortgage, may
not exceed 80 per cent. These rates may be increased to 40 per cent.
and 90 per cent, respectively, provided that the commune concerned
guarantees the fraction of the State loan in excess of the normal
maximum of 80 per cent.
4. Loans to private persons building blocks of flats : 25 per cent. ;
the total mortgages, including the State mortgage, may not exceed
70 per cent. This latter maximum may be raised to 80 per cent.,
provided that the commune concerned guarantees the fraction of the
State loan in excess of 70 per cent.
Further, the State may make loans with a view to fitting existing
blocks of flats with certain equipment (electricity, central heating,
hot water, etc.). The mortgages securing these loans have priority
over other mortgages on the property, even without the consent of the
mortgagees.
The rate of interest on all loans granted by the State is fixed at
4 | per cent, per annum. In addition, a redemption fee of 1 per cent.
per annum is charged for the loans mentioned under heads 1 to 4 above,
and of 3£ per cent, per annum for the loans for the improvement of
equipment.
The capital reserved by the State for granting these loans amounts
to 30,000,000 Kr.
3.—Statistics.
AMOUNT OF LOANS GKAKTED IN

1934

(in million Kr.)
To communes a n d co-operative building societies
...
To private persons building a house for their own use
To private persons building a block of flats ...
...

...
...
...

Total
Number of dwellings built with the financial assistance of the
State in 1934

3-6
2-8
4-1
10-5
5,622

163

DENMABK

FIFTH PART

HOLIDAYS WITH PAY
1.—Legal Basis.
Domestic Service Act of 6 May 1921 ; collective agreements in
various industries.
2.—Scope.
Domestic servants engaged for more than one month are entitled
to a holiday of three working days for each half-year of service. Any
agreement tending to limit this right is void if the servant is under
18 years.
The collective agreements in force in several industries frequently
provide for an annual holiday with pay. This applies, for instance,
to the agreements for the iron and metal working, textile, brewing,
sugar, confectionery, boot and shoe, wood, oil, and soap industries.
The agreements usually fix the holiday at six working days.
Employees in offices, commerce, banks, etc., ordinarily receive an
annual holiday of two weeks or more and employees in shops one week.
3.—Statistics.
No statistics are available.

L 2

ESTONIA
SUMMARY
PAGE

F I R S T PAKT :

Statistics of Population

SECOND P A R T : Social

166
167

Insurance

I.—Workmen's Compensation
II.—Sickness Insurance...
III.—Subsidised Benefit Schemes for Staffs of
Public Undertakings ...
THIRD PART :

Social

II.—Social Assistance

...

III.—Shipowners' Liability towards Sick and
Injured Seamen

FIFTH P A R T :

172

176
177
180
181

Housing

Family

170

176

Assistance

I.—Unemployment Relief

FOURTH P A R T :

167

Allowances

...

182

FIRST PART

STATISTICS OF POPULATI
CENSUS OF 1 MARCH

1934

GAINFULLY OCCUPIED POPULATION, CLASSIFIED B Y INDUSTRIAL STAT

Persons
employing
paid
workers

Occupational group

Agriculture, forestry, fishing
Mining and quarrying
Manufacturing industries, construction
Commerce
Transport and Communications
Public administration, national defence and professional services ...
Domestic service
Unspecified ...
Total gainfully occupied
Total population

...

28,082
23
4,518
1,933
147

Persons
assisted in
their work
by members
of their
families
92,658
20
1,903
2,234
173

Persons
working on
their own
account

Salarie
employe

10,085
65
22,887
7,133
2,114

1,83
14
5,17
6,19
4,03
16,72
4
46

277

34,730

97,031

42,561

34,629

ESTONIA

167

SECOND PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
Compulsory accident insurance is governed by the Act of 23 June
(6 July) 1912, as amended by the Acts of 18 June 1917, 3 February
1920 and 4 August 1923.
2.—Scope.
Insurance is compulsory for the following undertakings provided
that they regularly employ not less than five workers : mines and
quarries, industries in which articles are manufactured, altered or
transformed, including shipbuilding and the electrical industry,
construction, the transport of passengers and goods by road, rail or
inland waterway, including the handling of goods at docks, unloading
stations and warehouses.
Insurance may be made compulsory for other undertakings
employing not less than five workers.
State undertakings are not hable to insurance, unless they are
run on a commercial basis.
The insurance scheme does not apply to persons employed in
agriculture or commerce, or to domestic servants, home workers,
seamen and fishermen.
3.—Administration.
The insurance scheme is managed by two mutual insurance
institutions administered by the employers of the insured undertakings,
namely, the Estonian Accident Insurance Corporation, which insures
persons employed in private undertakings, and the Estonian Insurance
Corporation for persons employed by co-operative societies and
municipal undertakings.
The supervision of the insurance institutions is entrusted to the
Insurance Council, which comprises delegates of the various Ministries
and representatives of workers and employers.
4.—Financial Resources.
The cost of insurance is borne exclusively by the undertakings,
the rates of contribution rate being fixed by the Minister responsible for
social affairs.
The Estonian Insurance Corporation for persons employed by
co-operative societies and municipal undertakings is required to constitute a fund which, during its first ten years of existence, must be
equal to ten times the annual amount of pensions awarded and, from
the eleventh year, to the capital value of pensions.

168

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

5.—Benefits.
Insurance covers the risk of incapacity for work or death resulting
from an injury caused by an accident met with during or in consequence
of work.
(a) Benefits in kind.
Persons injured as a result of an accident are granted medical
treatment by the sickness insurance funds. If an insured person
receives no medical treatment from these funds, the accident insurance
institution refunds to him the cost of treatment in accordance with
a schedule established by the Insurance Council.
. • •• •
(b) Cash benefits.
1. Temporary incapacity.—The injured person receives a daily
allowance from the sickness fund from the first day of incapacity.
during the first 13 weeks. On the expiry of this period, an allowance
equal to two-thirds of the basic wage is paid by the accident insurance
institution.
2. Permanent incapacity.—-In case of total permanent incapacity,
the pension payable to the injured person is equal to two-thirds of
his wage. If incapacity is partial, the pension amounts to the fraction
of two-thirds of the wage corresponding to the loss of working capacity.
A pension equal to the full wage is granted in case of insanity, total
loss of sight, the loss of both hands or both legs, and in case of complete
infirmity requiring the constant attendance of another person.
At the request of the beneficiary, and with the consent of the
insurance institution concerned, pensions not exceeding 15 per cent.
of the annual wage may be commuted for a lump sum equal to ten
annual pension instalments.
Supplementary pensions are granted to persons in receipt of a
pension of not less than 35 per cent, of the maximum pension if their
annual wage is under 480 kroons in the case of men and 360 kroons in
the case of women. The supplement is equal to the difference between
the pension which the beneficiary would have received had his wage
been equal to the above-mentioned wage and the pension calculated
on his actual wage.
3. Death.—When death occurs within two years of the accident.
or even after a period of two years if the treatment has lasted
throughout such period, the insurance institution grants :
(i) Funeral benefit equal to 20 or 30 times the daily wage of the
deceased person ;
(ii) Survivors' pensions to the widow, children and other near
relatives of the deceased.
A pension equal to one-third of the deceased's annual wage is
payable to the widow ; if she re-marries, the pension ceases.
A pension equal to one-sixth of the annual wage is payable for each
child under 15 years of age, the pension being increased to one-fourth
of the wage for children who have lost both parents.

169

ESTONIA

A pension equal to one-sixth of the wage is payable to relatives in
the ascending line who were dependent on the deceased.
Brothers and sisters of the deceased who are under 15 years of age,
have lost both parents, and were dependent on the deceased each
receive a pension equal to one-sixth of the annual wage.
The aggregate amount of the survivors' pensions may not exceed
two-thirds of the annual wage of the deceased.
At the request of the beneficiary, and with the consent of the
insurance institution concerned, any pension not exceeding 15 per
cent, of the annual wage of the deceased may be commuted for a
lump sum payment equal to ten annual pension instalments.
6.—Statistics.
Number of insured persons on 31 December 1933 :
Estonian Accident Insurance Corporation
...
...
Estonian Insurance Corporation for Co-operative and
Municipal Employees
...
...
...
...
...
Number of pensions in course of payment on 31 December 1933

INCOME AND E X P E N D I T U R E FOB

(in thousands of kroons)

INCOME

38,790
10,298
1,244

1933

EXPENDITURE

Contributions of employers
affiliated to the Corporations
Interest on investments
...
Fines
Other income ...
...
...

Total

457 • 5
221-8
60
47-7

Medical treatment
Daily allowances
Current pensions
Lump-sum compensation
on
Funeral expenses
Accident prevention .
Transfer to pension capital
account
Cost of administration
Other expenditure
Credit balance

Total

733 0

BALANCE S H E E T OF THE CORPORATIONS AT 31 DECEMBER

14-6
142-1
193-5
81-8
0-9
7-2
70-7
47-6
35-8
138-8
733-0

1933

(in thousands of kroons)
ASSETS

Cash in hand
Current account
Deposits
Securities
Sundry debtors
Furniture and fittings
Other assets
Total

...

LIABILITIES

3-5
97-2
45-2
2,258-3
139-7
8-3
91-2

Pension capital account
Reserve fund
Sundry creditors
Other liabilities
Balance of assets
over
liabilities ...

2,129-9
246-2
77-9
50-6

2,643-4

Total

2,643-4

138-8

170

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

n.—Sickness Insurance
1.—Legal Basis.
Compulsory sickness and maternity insurance is governed by the
Act of 23 June (6 July) 1912, as amended by the Acts of 18 June 1917
and 3 February 1920.
2.—Scope.
The insurance scheme covers workers in industrial undertakings,
handicrafts, mining undertakings, inland navigation, tramways and
building undertakings, provided that the undertaking employs at
least five workers. The insurance authorities may, however, make
insurance compulsory in undertakings which employ less than five
workers.
Insurance does not cover persons employed by State undertakings
(except undertakings run on a commercial basis), railways of public
utility, agriculture, maritime navigation, commerce, domestic service,
and home work.
3.—Administration.
Insurance is administered by works funds with at least 500 members
and by joint funds for several undertakings, each having competence
for a specified area. The total number of funds was 28 in 1933.
The funds are managed exclusively by representatives of the
insured persons, and are supervised by five insurance offices, one for
each district, presided over by justices of the peace.
The central supervisory authority is the Insurance Council.
4.—Financial Resources.
The resources are derived from the insured persons' contributions,
which vary from 1 to 2 per cent, of the basic wage and may be
increased up to 3 per cent, for funds with a membership of less than
400, and from similar contributions payable by the employers.
The cost of medical treatment is borne solely by the employers.
The funds may, however, themselves organise medical services for their
members, in which case the employers are required to pay a supplementary contribution amounting to 2 per cent, of their aggregate
wage bill.
5.—Benefits.
Insurance benefits are granted in case of sickness or injuries caused
by an accident entailing incapacity for work, in case of confinement,
and in case of death.
(a) Benefits in kind.
Benefits in kind are granted from the first day of sickness and as
long as the patient is a member of the fund, but for not more than
26 weeks a year, or 30 weeks in the case of relapse, when the sickness
entails incapacity for work.

171

ESTONIA

The following benefits are granted to insured persons : first aid in
case of sudden illness or accident ; treatment in an itinerant dispensary ;
obstetrical treatment ; hospital treatment and maintenance in hospital.
Medical assistance includes the free supply of medicaments, dressings,
and other necessary therapeutic appliances.
The funds may grant medical assistance to members of the insured
person's family under the heading of optional benefit.
(b) Cash benefits.
1. Sickness benefit.—Sickness benefit, varying between one-half
and two-thirds of the basic wage, is granted from the fourth day of
sickness until recovery, but for not more than 26 weeks or, in case of
a relapse, for not more than 30 weeks in all during any one year.
In case of accident, the allowance is paid from the date of the
accident for a maximum period of 13 weeks.
2. Maternity benefit.—Maternity benefit is granted to women if
they have been members of a fund for at least three months before
confinement. It amounts to 50 per cent, of the basic wage, and is
payable for a period of two weeks before and four weeks after
confinement.
3. Funeral benefit.—Funeral benefit varying from 20 to 30 times
the daily wage is paid to the person who provides for the funeral of
the deceased.
The funds are empowered to grant maternity benefit and funeral
benefit in respect of members of the insured person's family. Nevertheless, the sum allocated to family benefits (including medical
assistance) must not exceed one-third of the total annual contributions
from employers and workers.
6.—Statistics.
Number of insured persons in 1933 : 40,173.
INCOME AND E X P E N D I T Ü B E FOB

1933

(in thousands of kroons)
EXPENDITURE

INCOME

Insured persons' contributions
Employers' contributions ...
Employers' subsidies to cover
cost of medical assistance
State subsidies
...
...
Other income
...
...
Total

451-4
456-8
368-3
9-0
56-4

Cash benefits ...
Benefits in kind
Cost of administration
Other expenditure

... 1,341-9

Total

353
862
108
26

1,350-9

EXPENDITURE ON BENEFITS

(in thousands of kroons)
Cash benefits :
Sickness benefit
Maternity allowances
Funeral expenses
Benefits in kind :
Treatment
Medicaments
Hospital treatment ...

285-6
24-0
43-9
325-4
301-6
207-9

172

INTERNATIONAL, SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T FOR A L L SICKNESS F U N D S AT 31 DECEMBER

1933

(in kroons)
ASSETS

LIABILITIES

Cash in hand
Deposits
.
Securities
Real property
Furniture and fittings
Curative establishments
Pharmacies ...
.
Outstanding contributions. .
Sundry debtors
Suspense accounts ...
Other assets

18,097
323,659
10,224
33,077
53,573
65,739
116,516
110,862
59,715
1,861
2,878

Real property and furniture
account
Contributions received in
advance ...
Reserve fund
Sundry creditors
Sinking fund
Curative establishments and
pharmacies
Working capital
Treatment of insured persons
Suspense accounts ...
Sundry liabilities

Total

796,201

Total

...

47,114
83
324,106
76,127
37,089
161,316
28,872
414
5,661
115,419
796,201

HI.—-Subsidised Benefit Schemes for Staffs of Public Undertakings
A.—SICKNESS BENEFITS FOR STATE WORKERS

1.—Legal Basis.
The medical treatment and cash benefits granted to State workers
in case of sickness are regulated by the Government Order of
6 February 1920, as amended on 18 June 1930 and 27 March 1931.
2.—Scope.
The Order covers all workers employed in State undertakings and
the members of their families, with the exception of workers employed
in undertakings run on a commercial basis.
3.—Administration.
Benefits are granted by the management of the undertaking.
4.—Financial Resources.
The cost of cash benefits is met solely from public funds. The
cost of medical treatment is borne entirely by the State, with the
exception of hospital treatment and treatment in a dispensary or by
medical practitioners other than those designated by the undertaking,
in which case part of the cost is met by the sick person in proportion
to his monthly wage :
Treatment in a dispensary or by a
medical practitioner other than t h a t
designated by the undertaking
...
Hospital treatment
...
...
...

Percentage of cost borne by worker
Wage of
Wage
Wage
under 80 kr.
80—100 kr.
over 140 kr.

50
25

60
40

75
50

The sick person is required to contribute in the same proportion
to the cost of medicaments, dressings and other necessary therapeutic
appliances.

ESTONIA

173

5.—Benefits.
Benefits are granted in case of sickness or injuries caused by an
accident entailing incapacity for work, in case of confinement, and in
case of death.
(a) Benefits in kind.
Workers and members of their family are entitled to benefits in
kind from the first day of sickness for the entire duration of the contract
of employment, but for not more than six months a year in the case of
workers and three months in the case of members of their family,
when the sickness entails incapacity for work.
The following benefits are granted : First aid in case of sudden
illness or accident, treatment in a dispensary, treatment by a doctor
in the permanent employment of the undertaking, obstetrical
treatment, and hospital treatment, including maintenance.
(b) Cash benefits.
1. Sickness benefit.—Sickness benefit is equal to the basic wage
during the first month of sickness and to two-thirds of the wage during
the following months. It is paid from the first day of sickness until
recovery, but for not more than 26 weeks or, in case of a relapse, for
not more than 30 weeks in all during any one year.
2. Maternity allowance.—A maternity allowance is granted to
working women who have been employed in the undertaking for at
least six months before their confinement. It is equal to the basic
wage and is granted for four weeks before and six weeks after
confinement.
An allowance equal to 25 per cent, of the monthly wage is granted
to the worker on the confinement of his wife.
3. Funeral benefit.—On the death of a worker an allowance is
granted to his family. It amounts to :
(i) One month's wages, if the deceased has been in State service
for less than six months ;
(ii) Two months' wages, if he has been in State service for more than
six months :
(Hi) Two months' wages, if death was entailed in the performance
of his duties, irrespective of the length of service.
This allowance is deducted from any pension granted to the
deceased's family.
In addition, funeral expenses amounting to one month's wages
are paid to the person who provides for the funeral of the deceased.
If a member of the worker's family dies, funeral expenses equal to
one-half of his monthly wage are paid to the worker.
6.—Statistics.
Separate statistics for State workers are not available, since the
sickness benefit data include both workers and officials.

174

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

B.—OLD-AGE

AND STJBVIVOBS' PENSIONS FOB WOKKEBS EMPLOYED I N
STATE UNDEBTAKINGS

1.—Legal Basis.
Old-age and survivors' pensions for State workers are governed by
t h e Act of 4 March 1926, as amended on 26 March 1929.
2.—Scope.
The Order covers all workers employed in State undertakings
and members of their family, with the exception of workers employed
in undertakings run on a commercial basis, 1 agricultural and forestry
undertakings, casual workers and members of their family.
3.—Administration.
Pensions are granted by the Minister of Education and Social
Affairs. The medical examination of applicants is entrusted to a
Government committee set up for this purpose.
4.—Financial Resources.
The cost of pensions and inclusive allowances made to workers
and members of their family is m e t exclusively from public funds.
5.—Benefits.
The Act covers the risks of old age (60 years), invalidity, and death.
Cash benefits.
1. Pensions.—Pensions
are granted to persons who have been
employed in a State undertaking or establishment for a t least 25 years
and who have reached the age of 60 years. The pension is payable
a t t h a t age even if the beneficiary has left his employment before
reaching the age limit, except in case of incapacity for work due t o
sickness or an accident. The qualifying period of 25 years is reduced
if the beneficiary suffers from an incurable disease which prevents him
from working.
The pension is fixed as a percentage of the last annual wage, varying
with length of service as follows :
Years of service
25
26
27
28
29
30

Percentage of
last annual wage
55
58
61
64
67
70

The pension payable to persons who have left their employment
without having completed a qualifying period of 25 years is fixed a t
35 per cent, of the basic wage if they have been employed a t least
five years and require the constant attendance of another person.
For each additional year of service the pension is increased by 2 per
cent, of the wage. If the state of the worker's health does not
1
The railways, post office, and telegraph and telephone services are not run
on a commercial basis.

175

ESTONIA

necessitate the constant attendance of another person, the pension is
fixed at 35 per cent, of the wage in case of total incapacity, provided
that he has been employed at least 10 years. For each additional
year of service the pension is increased by 2 per cent, of the wage.
In case of partial incapacity for work, the pension amounts to a
fraction of the pension payable in case of total incapacity, corresponding
to the loss of working capacity.
Workers dismissed as the result of physical injury or sickness
contracted during or in consequence of their work are granted a pension
irrespective of their length of service. The pension is equal to the last
annual wage if the beneficiary requires constant attendance. Otherwise the pension is equal to 85 per cent, of the wage if the incapacity
for work is total, while if it is partial, the pension is reduced to the
fraction of the 85 per cent, corresponding to the loss of working
capacity.
2. Lump sums.—Workers who, after at least two years' service
in a State undertaking, leave their employment as a result of sickness,
receive a lump sum equal to one-half of their annual wage if their state
of health does not necessitate the constant attendance of another
person, or three-quarters of the wage if they require such attendance.
3. Survivors' pensions and lump sum allowances.—On the death of a
male worker the widow receives one-half of the pension to which the
deceased would have been entitled, and the children one-sixth for
each up to three for as long as the mother survives. If there are more
than three children, one-half of the pension to which the deceased
would have been entitled is divided in equal parts among the children.
If the deceased leaves not more than four motherless children, each
receives one-quarter of the pension, and if there are more than four,
the pension is divided in equal parts among them.
On the death of a female worker the widower, if unable to work
and dependent on his deceased wife, receives one-half of the pension
to which she would have been entitled, and the children, up to and
including the third, receive one-sixth each. If they number more than
three, one-half of the pension to which the deceased would have been
entitled is divided in equal parts among them.
A lump sum is paid to the family of a worker who dies without any
right to a pension. If he leaves a widow with one or more children,
or two or more motherless children, they receive three-fourths of his
annual wage ; if he leaves a childless widow or one motherless child,
the sum is equal to one-half of his annual wage.
6.—Statistics.
Number of pensioners on 31 March 1934 ...
...
...
Total amount paid in pensions during the year ended
31 March 1934

885
287,129 kroons

176

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

THIRD PART
SOCIAL ASSISTANCE
I.—Unemployment Relief.
1.—Legal Basis.
The Act of 29 November 1932 established a fund to be used for the
organisation of relief works for the unemployed. Under this Act,
all persons and corporate institutions with an income are required
to pay a special emergency tax, the proceeds of which go to feed the
fund. The actual organisation of relief works is regulated by a
Government Order of 28 August 1933.
2.—Beneficiaries and Administration.
The Minister of Communications has at his disposal certain credits
provided for in the estimates, as well as sums paid into the Relief
Works Fund. Relief works are organised by the State and the local
authorities.
The recruitment of the unemployed for relief work is carried out
through the employment exchanges in accordance with certain rules.
Only Estonian nationals may be recruited for relief works, but an
exception is made for persons without nationality who have lived in
Estonia for at least 10 years. To be eligible, the unemployed person
must have lived at least twelve months in the area of the employment
exchange concerned, have been employed on paid work for at least
eight weeks during the preceding year, have a working capacity of at
least 60 per cent, of the normal figure, and be in a state of need.
Seasonal workers have no right to relief.
3.—Financial Resources.
State relief works are financed solely with the rnoney allocated for
their organisation. Local authorities which organise relief works
receive subsidies for the payment of up to 75 per cent, of the wages
of the workers employed on the works. The cost of organising the
works is borne by the local authorities concerned, but when they are of
more than local interest the Minister of Communications may grant
subsidies towards this cost.
The daily wage, as fixed by the Order of 28 August 1933 concerning
relief works, varies for an eight-hour day according to district, from
1-0 to 1-10 kr. for men and from 0-90 to 1-0 kr. for women. These
rates are increased by 0-10 kr. per day in respect of each child under 16
dependent on the worker.
4.—Statistics.
Between 1 January 1933 and 31 March 1934, 4,231 men and
1,329 women were employed on relief work, the men aggregating a
total of 1,057,747, and the women a total of 321,568, working days.
In addition to employment on these works, relief in kind was distributed to 54,564 persons unable to work or belonging to the families
of persons employed on relief works.

177

ESTONIA

During the same period the emergency tax brought in 3,268,433 kr.,
of which 2,763,033 kr. were expended on unemployment relief. This
sum was spent in the following manner :
Organisation of relief works
...
...
Relief in kind
Loans
Subsidies
Cost of administration (collection of tax)
Indirect expenses ...
...
...
...
Total

Kroons
2,406,178
269,496
30,100
1,270
14,438
13,296
2,734,778

Total income
Balance of income over expenditure

2,763,033
28,255

...

Relief in kind was granted mainly in the form of foodstuffs.
Children of the unemployed received a hot meal and 200 grs. of bread
a day, while adult persons unable to work received 400 grs. of bread
a day in the towns and 350 grs. of flour a day in the country.
The following sums were allocated to the organisation of relief
works :
State authorities
Provincial authorities
Municipal authorities
Borough authorities
Public utility institutions
Other bodies

...

Kroons
1,110,832
636,614
544,694
33,867
67,412
12,757

n.—Social Assistance
1.—Legal Basis.
The provisions governing social assistance are embodied in the Act
of 19 June 1925 concerning public assistance.
2.—Beneficiaries.
Public assistance includes the following services :
(a) Assistance for children and minors ;
(6) Maternity assistance ;
(c) Assistance for the infirm and blind ;
(d) Medical assistance for persons in necessitous circumstances ;
(e) Assistance for the aged and disabled.
3.—Administration.
Social assistance is administered by the State, the local authorities,
and various private societies.
4.—Financial Resources.
The yearly budgets of the State and the local authorities include
estimates to cover the cost of social assistance. The resources of
private societies are derived from members' subscriptions, subsidies
from the State and local authorities, and donations from private
individuals.
X O 14641

178

INTERNATIONAL SURVEY OP SOCIAL SERVICES, 1 9 3 3

5.—Benefits.
(a) Assistance for children and minors.
Assistance is granted when there is nobody to look after the child's
maintenance or its physical and moral upbringing, or when such care
as is given seems likely to undermine the child's health and development.
When parents or guardians of a child under 18 lead an immoral
life, refuse to provide the child with the necessary care, give it an
immoral education, or torment or ill-treat it, the authorities may place
the child in a children's home or with a private family. Such
children remain in homes or with, private persons until they reach
the age of 16, and may in no case be reclaimed until they have
completed their elementary education, learned a trade, and found
employment.
The Act requires the local authorities to organise kindergartens
for children of 3 to 7 years. Kindergartens and day nurseries have
been established by a few large industrial undertakings. For
backward children, the local authorities organise holiday camps in
the country, where destitute children are maintained free of charge
and others at moderate rates. The State has organised homes for
foundlings, and maternity homes. Children remain in such homes until
the age of 3, and mothers until the child is 6 months old.
(b) Maternity assistance.
The Act provides indigent women with free medical treatment,
medicines and dressings before, during and after confinement and,
when necessary, with treatment in a maternity home.
(c) Assistance for the infirm and the blind.
Delinquent, blind, deaf and dumb, and mentally deficient children
are placed in boarding schools, charitable workshops, and homes.
Children placed in boarding schools are given an elementary education
and learn a trade corresponding to their aptitudes. The workshops
procure work for the inmates who are fit to work but unable to look
after themselves. Persons unfit for work are placed in homes.
Hospitals and asylums have been established for epileptics and the
mentally diseased who cannot satisfactorily be assisted in their own
homes or placed with private families.
(d) Medical assistance.
The local authorities are required to grant free medical treatment
and other therapeutic appliances to indigent persons temporarily
unable to work on account of sickness, accidents, etc., as well as to
persons who, while able to work, are unable to pay for medical
assistance. Assistance is granted as a loan and the beneficiary is
required to refund the cost incurred within two years. He may be
relieved of this obligation by the authority granting the assistance.

179

ESTONIA

(e) Assistance for the aged and disabled.
Permanently disabled persons who have lost at least 60 per cent.
of their working capacity and persons over 60 years of age who are in
necessitous circumstances are entitled to assistance, which is granted
to them either in their homes or by placing them with a private family
or in an institution.
The local authorities are required to open homes for the aged and
disabled or to organise special sections for the disabled in homes for
the aged. The cost of upkeep of such homes is borne by the local
authorities. Persons placed in such homes are employed on suitable
work (gardening, basket making, etc.). They receive 50 per cent.
of the proceeds from the sale of their work, the remainder being used
to cover the expenditure entailed by the organisation of the work.
6.—Statistics.
Number of Public Assistance Institutions in 1933
Children's homes ...
D a y nurseries
Homes for delinquent children
School for the deaf and dumb
School for the blind
Homes for the aged and disabled

State
6
—
3
1
1

Towns
11
19
—
—
—
29

Communes
9
—
—
—
—
282

Number of persons assisted in 1933 :
Inmates of institutions
Otherwise assisted

Total
26
19
3
1
1
311

12,441
40,859
53,300

Expenditure for Public Assistance
State ,
Subsidies to institutions
...
...
...
...
Measures to combat tuberculosis ...
...
...
Consulting rooms for mothers
...
...
...
Measures to combat venereal disease
...
...
Measures to combat infectious diseases
...
...
Poor relief
Assistance for the mentally diseased
...
...
Assistance for disabled ex-service men
...
...
Assistance institutions for children and t h e infirm
Sanatoria
Total ...
.
Local authorities :
Homes for the aged and charitable institutions
Night hostels ...
D a y nurseries ; kindergartens
Poor relief
...
Cost of administration
Miscellaneous ...
Total

...

Kroons
433,450
170,000
50,000
150,000
20,000
288,000
196,000
23,000
328,722
704,902
2,364,074
375,064
19,504
412,261
755,596
82,511
68,583

1,713,519
112

180

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

m.—Shipowners' Liability towards Sick and Injured Seamen
1.—Legal Basis.
The shipowners' liability towards sick, injured, or deceased seamen
is based on the Seamen's Act of 22 March 1928.
2.—Beneficiaries.
The Act covers all persons employed on Estonian ships engaged in
maritime and inland navigation, irrespective of tonnage, with the
exception of vessels belonging to the State, vessels of less than 60 tons
burden, and vessels on which only members of the owner's family are
employed.
3.—Administration.
Benefits are provided by the shipowners or by their representatives.
4.—Financial Resources.
The cost of assistance is borne exclusively by the shipowners.
When, however, a seaman suffering from tuberculosis or a venereal
disease at a communicable stage is put ashore in a foreign port, the cost
of medical attendance, curative treatment and medicines after his
disembarkation are met by the State.
5.—Benefits.
The Act covers the risks of accident, sickness, and death.
(a) Benefits in kind.
The master must see that the sick or injured seaman receives
on board or ashore the necessary attention, including maintenance,
medical treatment and medicines.
If the sick or injured seaman is put ashore in a foreign port, the
master is required to leave him in the care of the Estonian consul or,
where there is no consul, to ensure that he will receive the necessary
attention and to notify the nearest consul.
A discharged seaman is entitled to medical attendance during
six weeks or, in the case of Estonians under treatment abroad, during
12 weeks from the date of discharge or if there has been no discharge,
from the date of departure of the vessel, unless he has incurred the
illness or injury intentionally or through disorderly conduct or gross
negligence, or has concealed such illness or injury when taking up his
employment.
(b) Cash benefits.
If a seaman is rendered incapable of performing his duties in
consequence of illness or injury, he is entitled to full wages throughout
the duration of his articles of agreement, unless his right to wages has
previously lapsed. If a seaman is discharged before the expiry of his
agreement, he is entitled to his wages until he actually leaves his
employment, and to a supplement equal to one month's wages (three
months' wages, if he is a master), but in no case for longer than the
remainder of the period of currency of the agreement.

ESTONIA

181

In case of death, the cost of burial is borne by the shipowner if
the seaman dies before his articles of agreement expire or during any
period when he was treated at the expense of the shipowner, that is
to say, up to six weeks (12 weeks in the case of an Estonian under
treatment abroad) after his discharge.
No statistics are available.

FOURTH PART

HOUSING
1.—Legal Basis.
The Act of 3 April 1922, as supplemented on 27 October 1933,
establishes measures for promoting the building of cheap dwellings.
2.—Beneficiaries.
The loans granted to municipal authorities and through them to
building societies and private individuals must be used for the
construction of houses containing dwellings of not more than three
rooms and kitchen in urban districts where there is a housing shortage.
3.—Authorities concerned in Building.
State assistance is granted for the construction of cheap dwellings
to local authorities which grant subsidies to building societies and
private individuals.
4.—Financing by Public Authorities.
The Act of 3 April 1922 allocated 210,000 kr. to subsidise building.
From this sum loans could be granted to the local authorities, building
societies, and private individuals for not more than 70 per cent, of the
building costs. The local authorities were themselves required to
grant supplementary loans not exceeding 10 per cent, of the building
costs. The rate of interest, fixed by the Act of 1922 at 4 per cent.,
was reduced by the Act of 27 October 1933 to 3 per cent. The loans
are redeemed by annual payments over a period of 50 years for stone
buildings and 40 years for buildings of other materials.
The local authorities generally exempt new buildings from taxation
for a period of three years.
5.—Statistics.
State loans are no longer granted. During 1933 no dwellings
were built with the help of the public authorities.

182

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

F I F T H PART

FAMILY ALLOWANCES
Family allowances are granted only in a few private undertakings.
They exist, however, in all Government services and State undertakings
in virtue of the Government Order of 19 October 1922. Workers
receive allowances of 0 • 25 kr. a day for their wife and 0 • 15 kr. for each
other dependent member of their family.
No statistics are available.

GREECE
SUMMARY
PAGE

F I R S T PART :

Statistics of Population

SECOND P A B T : Social

184

...

185

Insurance...

I.—Workmen's Compensation

185

II.—Social Insurance for Seamen

T H I B D PART :

189

III.—Social Insurance for Tobacco Workers

192

IV.—Other Provident
Schemes

195

Social

and

Social

Insurance
196

Assistance

Shipowners' Liability towards Sick or Injured
Seamen
196
FOURTH P A R T : Housing

...

197

FIFTH P A R T :

Family

Allowances

198

SIXTH PART :

Holidays with Pay

198

FIRST PART

STATISTICS OF POPULA
CENSUS OF

1928

GAINFULLY OCCUPIED POPULATION 10 Y E A R S AND OVER, CLASSIFIED B Y O

Occupational groups

Agriculture, stock-raising, hunting,
fishing
Mines and quarries
Industry
Communications and transport
Banking, exchange and broking
Commerce
Public services ...
Liberal professions
Personal services
Unspecified occupations
Unspecified industrial status ...
Occupied population ...
Total population
,,
,,
(10 years and over)

Employing
salaried
employees
and workers
82,852
107
29,060
3,818
1,913
25,499

Employing
members of
family only

Working on
own account

404,099
19
12,741
1,410
316
11,468

334,592
151
121,970
30,234
6,061
85,415

—

—
•—

—
—

——

147,949

430,847

610,122

—
•—•

—

—
—

2,677
2,023

327
467

•

—

25,415
6,284

GREECE

SECOND

185

PART

SOCIAL INSURANCE1
I.—Workmen's Compensation
Workmen's compensation for accidents is regulated by two special
Acts, one of which applies to the great majority of undertakings and
the other to mines and metallurgical undertakings only.
A.—GENEBAL

ACCIDENT COMPENSATION SCHEME FOB WOBKERS AND
SALARIED EMPLOYEES

1.—Legal Basis.
Liability for compensation for industrial accidents to workers and
salaried employees is regulated by the Act of 31 December 1914,
consolidated by Decree of 24 July 1920, and amended on various points
by the Acts of 20 January 1923, 10 May 1930 and 30 August 1931.
2.—Scope.
The following are liable for compensation for industrial accidents :
employers in undertakings for building and other technical work ; heads
of all kinds of industrial undertakings, workshops or other workplaces
using mechanical equipment; heads of water transport, loading and
unloading and warehousing undertakings of all kinds; and in general,
employers in all industries or undertakings manufacturing or using
explosive or corrosive materials or machinery driven by any kind of
power other than human or animal.
The State, or any other legal person who employs workers or salaried
employees directly in the work or undertakings specified above, is also
liable for the payment of compensation as provided under the Act.
The Act applies to all workers and salaried employees employed
in the undertakings specified.
3.—Administration.
There are no special institutions to administer the Act, every
employer being personally liable for the payment of the statutory
benefit to members of his staff who incur accidents. The Minister of
National Economy is responsible for the general enforcement of the
Act.
4.—Financial Resources.
The funds necessary for the payment of compensation are provided
by the employer who is liable.
1
Considerable changes were made in the legislation governing social insurance
by an Act of 24 September 1934, amended by a Decree of 29 J u n e 1935, which
introduced compulsory insurance against industrial accidents, sickness, maternity,
invalidity, old age, and death for workers in industry and commerce.

186

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

5.—Benefits.
The Act covers all accidents incurred in the course of or arising out
of work and due to a violent cause.
The injured person is entitled to payment by the employer of the
cost of the medical attendance and medicines and all other treatment
. necessitated by his condition. These expenses may not exceed 200
drachmas a day and are payable for a maximum period of two years.
Cash benefits are also due in case of partial or total temporary incapacity, partial or total permanent incapacity, and death.
1. Temporary incapacity.
The injured worker is entitled, for a maximum period of two years,
to a daily allowance at the following rates : (a) in case of partial
incapacity, half the reduction effected in the wages drawn at the time
of the accident ; (b) in case of total incapacity, half the wage drawn a t
the time of the accident.
If after two years the incapacity still continues, it is regarded as
permanent and the worker is entitled to the compensation specified
under (6) below, after deducting the total amounts paid out in daily
allowances.
2. Permanent incapacity.
A worker who is permanently incapacitated for work is entitled to
compensation in a lump sum at the following rates :
(a) In case of partial incapacity, six times the reduction which has
been or might be effected in the annual wage of the insured person.
The compensation may not be less than 16,500 drachmas, and if the
amount of the reduction multiplied by six is more than 55,000 drachmas,
only a quarter of the extra amount may be paid.
(b) In case oí total incapacity, compensation is at the rate of six years'
wages, subject to a minimum of 55,000 drachmas. If the total wages
for six years exceed 110,000 drachmas, only a quarter of the extra
amount may be paid.
3. Death.
In case of death, compensation is payable at the rate of five years'
wages, subject to a minimum of 66,000 drachmas. If the total wages
for five years exceed 110,000 drachmas, only a quarter of the extra
amount may be paid.
The compensation is payable to the widow. If there are children,
the widow is entitled to two-fifths of the compensation, the remaining
three-fifths being divided among the children.
In addition to the compensation, the dependants of the deceased
are entitled to funeral benefit of 2,000 drachmas.
6.—Statistics.
Statistics for 1933 are not available.

GREECE

187

B.—SPECIAL ACCIDENT COMPENSATION SCHEME TOB WORKERS IN MINES
AND METALLURGICAL UNDERTAKINGS

1.—Legal Basis.
Compensation for accidents incurred in the undertakings covered
is governed by the Act of 21 February 1901, concerning the relief of
persons who meet with accidents in mines and metallurgical undertakings and of the members of their families, consolidated by a Decree
of 23 March 1925, and amended in several respects by the Acts of
10 May 1930 and 27 August 1932.
2.—Scope.
The Act covers mines and metallurgical undertakings and quarries
and all ancillary occupations. It applies to contractors, workers
and salaried employees employed in these undertakings irrespective
of age or sex.
3.—Administration.
The scheme is administered by a single institution, the Miners'
Fund at Athens, membership of which is compulsory for all the
undertakings covered.
The fund is under the chairmanship of an official of the Labour
and Social Welfare Department. It is managed by a governing
body of not less than 10 and not more than 12 members.
The fund is entirely responsible towards the insured persons for
all the benefits secured to them under the Act.
4.—Financial Resources.
The financial resources of the fund are derived from contributions
from the member undertakings. The contribution is assessed as a
percentage of the wage bill of each undertaking; it is fixed by the
Minister of National Economy and may not exceed 2 per cent, of the
wage bill.
5.—Benefits.
The Act covers all accidents incurred in the course of or in connection
with work.
Certain occupational diseases are also assimilated to accidents;
thus, persons who can prove that they have become incapacitated for
work during their employment in a mine or metallurgical undertaking
on account of defective ventilation, asphyxiating fumes, or the inhalation of poisonous gases or noxious dust, such as arsenic or lead
(lead poisoning), are also entitled to compensation.
The benefits prescribed by the Act comprise medical attendance,
and cash benefits in case of incapacity for work or death.
1. Medical attendance.—The employer is liable for the payment of
the cost of the medical treatment and medicines required by the injured
person's condition during the first three months. For any subsequent
period the employer also pays the cost of these benefits, but he is
entitled to recover half the amount from the Miners' Fund.
There is no statutory limit to the duration of these benefits.

188

INTERNATIONAL SUBVEY Ol" SOCIAL SERVICES, 1933

2. Benefits in case of incapacity.—If incapacity does not last more
than three months, the injured worker is entitled to a weekly allowance
at the rate of three-fifths of his wages.
If incapacity lasts more than three months, the injured worker is
entitled to a pension or a lump sum.
(a) Total incapacity.
The pension is at the rate of two-thirds of the wage. The same
pension is payable for the loss of a hand or foot.
(b) Partial incapacity.
The pension is at the rate of one-third of the wage.
(c) Lead poisoning.
The insured person is awarded a provisional pension, the amount
of which is not specified by the Act. If the illness is foitnd to be
incurable and causes permanent incapacity, the provisional pension
is converted into a permanent pension.
(d) Special cases.
If the accident causes the loss of one or more joints of a finger or
toe, the ankylosis of a finger or toe or the total loss thereof (except in
the case of the thumb of the right hand), a slight shortening of a leg
owing to a fracture, or the total or partial loss of an eye (unless the
occupational capacity is reduced thereby or there is a danger of injury
to the sound eye), a lump sum is granted in compensation to the
exclusion of any further claim. This sum must be equivalent to the
annual pension for partial incapacity for a period of one to four years,
fixed at the discretion of the governing body of the Fund according to
the nature of the injury and the reduction of the worker's capacity
to carry on his former occupation.
In principle, the monthly pension may not exceed 1,200 drachmas,
but if the pension calculated in accordance with the above provisions
is higher, the pension of 1,200 drachmas is increased by a quarter of
the additional amount.
The cost of these benefits is shared equally between the employer
and the Miners' Fund.
The governing body of the Miners' Fund, on the application of
the injured person or of the members of his family or ex officio, may
commute the pension for the lump sum compensation provided for
under the general Act (see summary of scheme for workers and
salaried employees above).
3. Death.—In case of death the employer is liable for funeral
expenses up to a maximum of 2,000 drachmas. The amount is
assessed by the governing body of the Miners' Fund and ma}7 not be
less than 750 drachmas.
The widow and orphans of a person in receipt of a pension for
permanent partial or total incapacity are entitled to a pension. The
•vndow and orphans of a worker killed in the course of his emploj'ment or
before the pension was assessed are assimilated to the dependants of
a person drawing a pension for permanent total incapacity. If there
is no widow or orphan, the pension is payable to the parents of the
deceased.

GKEECE

189

The total pension due to dependants is equal to three-quarters of
the pension which was or would have been payable to the deceased.
Each dependant is entitled to a pension representing a fraction of this
amount, but the principles on which the pensions are to be distributed
are not specified in the Act.
The widow's pension is payable until remarriage.
Male orphans are entitled to the pension up to the age of 16 years,
and beyond this age if they are incapable of work.
Female orphans continue to receive the pension until marriage,
and are also entitled to a sum equal to two years' pension as dowr}'.
6.—Statistics.
Statistics for 1933 are not available.
II.—Social Insurance for Seamen
1.—Legal Basis.
The Maritime Pension Fund was set up in 1836 and is now governed
by Act No. 3347 of 16 December 1926, as amended in particular on
12 February and 20 September 1931, and 7 May and 7 September 1932.
2.—Scope.
Insurance with the fund is compulsory for añ seamen, whether
Greek or foreign, serving on Greek ships, including persons serving
in the navy, the mercantile marine, fishermen, boatmen, pilots, etc.,
whether employed in navigating the ship or on the general service
staff.
Voluntary insurance is open to Greek seamen who do not belong
to a properly constituted crew.
3.—Administration.
The scheme is administered by a single fund, the Maritime Pension
Fund at Athens, which is a public institution.
The governing body of the Fund consists of 4 members appointed
for a term of two years by the Minister of Marine. It comprises the
Director of the Fund as chairman, two representatives of the mercantile marine, one high grade naval officer, one officer of the harbour
service, one representative of the Bank of Greece, two shipowners,
two officers of the mercantile marine, one representative of the lower
ratings, and one pensioner of the fund.
The governing body draws up the annual budget of the Fund,
which is subject to the approval of the Minister and decides all questions
concerning the Fund including the award of benefit, a special subcommittee being set up for the latter purpose.
The general meeting of seamen's representatives is of an advisory
character only. It may recommend to the Minister any measures
likely to promote the objects of the Fund.
4.—Financial Resources.
The financial resources of the Fund are derived from contributions
from the insured persons and their employers, and from a number of
special fees and charges levied on behalf of the Fund.

190

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The insured person's contributions vary according to the grade of
the insured person between 3 and 30 drachmas a month.
Every insured person is required to pay a special contribution,
varying according to his grade between 150 and 1,000 drachmas on
marriage.
By decision of the governing body, both the regular and the special
contributions may be multiplied by such co-efficient as is justified
by the financial and economic situation of the Fund. This co-efficient
was fixed at 6 as from 1 April 1925.
The shipowners' contributions are at the rate of 80 per cent, of the
regular contributions paid by the insured persons. For seamen serving
with the navy the necessary sums are provided in the national budget.
The special fees and charges, all or part of the proceeds of which are
paid into the Fund, include the fees charged for official documents
(seamen's service certificates, ships' articles, penalty books, certificates
of the ship's nationality, tonnage certificates, etc.), or certificates of
capacity (masters', engineers', pilots', or pursers' certificates, etc.).
Further, certain deductions from pay in the navy and mercantile
marine are paid into the Fund, which is also entitled to the proceeds
of salvage due to the State, to certain percentages of prize money and
of salvage rewards, etc.
5.—Benefits.
The fund covers the risks of old age, invalidity and death. Pensions
are awarded to surviving dependants and dowries to the widows and
daughters of pensioners.
1. Old-age pensions.—The right to an old-age pension is acquired
at the age of 55 years after 25 years' maritime service. The pension
may be awarded sooner under certain conditions, but not in any case
before the age of 50 years. In calculating the length of actual service
all periods of engine-room service are increased by 25 per cent.
Insured persons serving in the navy or in the harbour officers'
service are entitled to a pension after 15 years' service.
The basic monthly pension due to a seaman who retires at the age
of 55 years after 25 years' service is at the rate of six times the average
monthly contributions paid by the seaman plus 30 drachmas. The
pension for insured persons serving in the navy and for harbour
officers is at the rate of one-twenty-fifth of the basic pension for every
year's service, provided that the pension awarded to persons under
50 years of age may in no case exceed the basic pension.
2. Invalidity pension.—An invalidity pension is payable to insured
persons incapacitated for work as seamen. The Act distinguishes between incapacity arising out of service (occupational accidents) and
incapacity due to any other cause.
(a) Incapacity due to an occupational accident.
The injured seaman is entitled to a pension without any condition
as to length of service. In the case of total incapacity the pension
is at the rate of one-twenty-fifth of the basic pension for each year's
service, but may in no case be less than the basic pension. In case

GREECE

191

of partial incapacity the same benefit is payable, but for a seaman with
less than 25 years' service the pension is at the rate of half the basic
pension plus one-thirtieth of the basic pension for each year's service
beyond the tenth.
(b) Incapacity due to cames other than accidents.
In this case a pension is due only if the insured person has completed
at least 10 years' service.
In case of total incapacity the pension is equal to half the basic pension, plus one-thirtieth of the basic pension for each year's service
beyond the tenth.
In case of partial incapacity the pension is at the rate of one-third
of the basic pension, plus two-forty-fifths for each year's service
beyond the tenth.
3. Survivors' pensions.—The widow of a pensioner, and his children
if both parents are dead, are entitled to a pension. The survivors of
an insured person have the same right if the deceased had completed
at least 10 years' service at the time of his death, or if death was due
to an occupational accident.
The widow's pension is payable until remarriage, the pension to
male orphans up to the age of 18 years, and that to female orphans
until marriage. In the case of male orphans who are totally incapacitated for work the pension may be continued beyond the eighteenth
year.
If there is no widow or orphan, the pension reverts to the father
of the deceased, provided that he is permanently and totally incapacitated for work ; if there is no father, to the widowed mother ; and if
there is no mother, to the brothers of the deceased up to the age of 18
years and his sisters until their marriage. In the case of brothers who
are totally incapable of work the pension may be continued beyond
the age of 18 years.
The widow's pension is at the rate of 70 per cent, of the pension of
the deceased, increased by 10 per cent, for every dependent child.
The orphans' pension is at the rate of fifty-five-hundredth's of the
pension of the deceased, increased by 15 per cent, for every orphan after
the first.
Fatherless children whose mother has remarried are regarded as
full orphans.
The father's pension is at the rate of 50 per cent, of the pension of
the deceased. The brothers and sisters receive 50 per cent, of the
pension of the deceased if there are three or more, 40 per cent, if there
are two, and 30 per cent, if there is only one.
If the deceased was in receipt of a pension for partial incapacity
only, the pensions to survivors are calculated on the basis of a pension
for total incapacity.
The total pension payable to the family of a deceased seaman
may not exceed the pension to which the deceased was or would have
been entitled.

192

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

4. Dowries for widows and daughters of insured persons.—A childless
widow in receipt of a pension is entitled on remarriage to a lump sum
equal to 2 years' pension if there are no other members of the seaman's
family, and to one year's pension if there are other members of the
family.
The daughters of seamen with 10 years' service or more and the
daughters of pensioners are entitled on their first marriage to a sum
of 400 to 600 drachmas as a dowry.
Increase in benefits.—By decision of the governing body, the
pensions and dowries awarded by the Maritime Pension Fund may
be multiplied by such co-efficient as may be justified by current
financial economic circumstances. This co-efficient was fixed at 6
as from 1 April 1925.
6.—Statistics.
Number of insured persons in 1933
INCOME AND E X P E N D I T U R E o r

...

... 27,500

MARITIME P E N S I O N F U N D I N

1933

(in thousands of drachmas)
EXPENDITURE

INCOME

Insured persons' contributions
Employers' contributions ...
Subsidies from public authorities
Interest and other income ...
Total

22,750
22,096
18,460
7,005
70,311

ASSETS OF MARITIME P E N S I O N

Securities ...
...
...
Cash at National Bank ...
Real property, mortgages, etc.
Other assets
...
...

Benefits
...
...
...
Cost of administration, etc
Extraordinary expenditure...
Dowries
Management of real property
Contribution to capital fund
Total

56,532
2,674
1
371
47
10,686
70,311

F U N D AT E N D OF FINANCIAL Y E A R

...
...
...
...

Gross assets
Liabilities
Net assets

1933

thousands of
drachmas
47,564
34,740
11,388
13,710
109,402
28,324
81,078

HI.—Social Insurance for Tobacco Workers
1.—Legal Basis.
The scheme is governed by Act No. 3460 of 17 March 1928 concerning tobacco factories and insurance for tobacco workers, confirming
the Legislative Decrees of 29 October 1927 and 11 July 1925, and by
the Decrees of 9 May 1928 concerning pensions for tobacco workers and
12 April 1929 concerning the distribution of funds between the various
branches of insurance.
2.—Scope.
Insurance is compulsory for all workers in tobacco factories over
16 years of age (14 years for girls) who were under 30 years of age on

193

GREECE

entering employment, irrespective of sex or nationality. Admission
to employment in tobacco factories, and therefore to insurance, is
however subject to a satisfactory medical examination carried out
by the medical board of the fund.
Voluntary insurance is open to officials of tobacco workers' unions,
unemployed tobacco workers, and insured persons who, after paying
at least 1,500 daily contributions, cease to be engaged in insurable
employment.
3.—Administration.
The scheme is administered by a single institution, the Tobacco
Workers' Insurance Fund, which is responsible for all the branches of
insurance, i.e., sickness, invalidity, old-age, survivors', and unemployment insurance. The Fund is managed by a board consisting of
four State officials appointed by the Minister of National Economy,
three employers' representatives, and five insured persons' representatives. The employers' and insured persons' representatives are
nominated by the trade associations and appointed by the Minister
of National Economy. The central fund has local organs in the
provinces attached to which are advisory committees to supervise
the application of the scheme. These committees are composed of
representatives of the State, the employers, and the insured persons
in equal numbers.
4.—Financial Resources.
The financial resources of the Fund are derived from contributions
from the employers and insured persons, the cost of administration
being borne by the public authorities. The total contribution is at
the rate of 8 per cent, of the wages of the insured persons, shared
equally by the employer and the insured person. The contributions
of both compulsorily and voluntarily insured persons are deducted
from their wages by the employer. Unemployed persons pay the
whole contribution directly to the Fund.
5.—Benefits.
Sickness insurance.—The Fund grants benefits in case of sickness
and childbirth. The benefits comprise medical attendance and
medicines for the insured persons and for the members of their families,
sickness benefit to the insured persons, payable from the third day of
incapacity for a maximum period of six months, and a contribution to
the expenses of insured women in childbirth. These benefits may be
replaced by admission to a hospital or other institution.
Invalidity, old-age and survivors' insurance.—The award of benefits
in case of invalidity and old age is subject to the completion of a
qualifying period of 1,800 daily contributions for invalidity insurance
(except for insured persons suffering from tuberculosis, for whom no
qualifying period is prescribed), and 2,700 daily contributions for
old-age insurance. Insured persons who have reached the age of 60
years without completing the qualifying period are entitled to the
repayment of half their contributions with interest at 6 per cent.
x

G 14641

194

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Unemployed workers may maintain their right to the various
kinds of insurance benefits by paying the whole of the contributions
due for the period of unemployment within the eight months following
their re-entry into insurable employment.
The old-age pension is payable at the age of 55 years.
The amount of the invalidity and old-age pensions varies with the
number of paid-up contributions, the age at which the insured person
entered insurance, and the length of the contribution period. At
present, however, the annual pension is fixed at a flat rate of 5,400
drachmas for insured men and 4,500 drachmas for insured women.
In the event of death, a lump sum equal to the monthly pension
is awarded to the heirs of the deceased to cover the funeral expenses.
If the insured person had paid at least 1,500 daily contributions at
the time of death, his dependants are entitled to the repayment of
half the contributions paid on his account with interest at 6 per cent.
If the insured person had completed the whole qualifying period of
1,800 paid-up contributions or was already in receipt of an invaUdity
or old-age pension, his widow, if disabled or over 45 years of age or
responsible for the maintenance of children under age, and his children
up to the age of 16 years (18 years for girls) are entitled to half the
pension of the deceased. Where there is only one surviving dependant
the proportion is reduced to one-third. A widow who is under 45 years
of age is entitled to a temporary pension for two years. No pension
is payable if the earnings of the deceased person's heirs exceed twice
the amount of the pension to which they would have been entitled.
6.—Statistics.
Number of insured persons at 1 J a n u a r y 1933 : Men
Women

... 16,851
... 16,282

Total

... 33,133

INCOME AND E X P E N D I T U B E O F TOBACCO W O B K E B S ' INSUBANCE F U N D

(in thousands of drachmas)
EXPENDITURE

INCOME

Insured persons' contributions 17,521
Employers' contributions
... 15,543
Subsidies from public authorities ...
19,697
Interest on capital
...
... 4,297
Other income ...
...
... 2,190
Total

Cash benefits :
Sickness
Unemployment
Pensions
Cost of administration
Balance on year's working

17,412
20,606
9,231
6,362
5,637

Total

59,248

ASSETS OF TOBACCO W O B K E E S ' INSUBANCE F U N D
FINANCIAL Y E A R 1933

Securities and interest ...
Cash at various banks
Debts and other claims ..
Furniture and equipment
Other assets

...

AT E N D

...

thousands of
drachmas
66,995
8,717
6,420
2,737
990

Liabilities ...

85,859
25,000

i\et assets ...

60,859

195

GREECE

IV.—Other Provident and Social Insurance Schemes
There are a great many funds based principally on the Act concerning social insurance for workers and salaried employees in private
undertakings, promulgated on 16 July 1922. These funds have been
set up for workers employed in certain undertakings or belonging to
certain occupational groups. Some of them provide benefit« in case of
sickness only, while others cover only the risks of invalidity and old age.
Besides these funds there are also other institutions which insure
their members against all the above-mentioned risks and even against
unemployment.
The following tables are taken from statistics prepared by Mr.
Spiridion Vellianitos (Athens, 1935). In order to simplify the very
detailed statistics given in this publication, the figures for the funds
covering the risks of sickness only and those for all other funds have
been added together separately.
These two tabular summaries do not, however, include the figures
for the funds for the civil and military servants of the State.
Statistics of Social Insurance and Provident Funds
Sickness

Funds1

INCOME AND E X P E N D I T U R E FOB THE FINANCIAL Y E A R 1933-1934

(in thousands of drachmas)
INCOME

EXPENDITURE

Employers' contributions
... 12,791
Insured persons' contributions 11,783
Other income ...
...
...
471
Total

Benefits other t h a n pensions
Cost of administration
Other expenditure
...
Surplus income
...

26,045

Total

Other Provident and Insurance

Funds'1

... 24,630
...
342
...
67
...
6
25.04S

INCOME AND E X P E N D I T U R E FOR THE FINANCIAL Y E A R 1933-1934

(in thousands of drachmas)
EXPENDITURE

INCOME

Employers' contributions
... 85,354
Insured persons' contributions 131,357
Subsidies from public authorities
79,556
Interest
66,541
Other income
97,977
Total

1
2

...460,785

Pensions
Other benefits ...
Cost of administration
Miscellaneous expenses
Credit balance
Total

...
...
...
...
...

118,280
55,279
18,389
75,969
192,868

. 460,785

Including funds of metal works which cover occupational diseases only.
The statistics relate to 58 such funds.
K 2

196

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

THIRD

PART

SOCIAL ASSISTANCE
Shipowners' Liability towards Sick or Injured Seamen
1.—Legal Basis.
The statutory liabilities of shipowners towards their seamen are
governed by the Act of 17 April 1910 respecting maritime trade.
2.—Beneficiaries.
The provisions concerning shipowners' liability cover all members
of the crew.
3.—Benefits.
Benefits are due to all seamen who fall ill during the voyage or are
injured in the course of service. The seaman is entitled to payment
of his wages and to the care required by his condition. If the seaman
has to be put ashore, the master of the ship is required to deposit the
sum necessary to cover his treatment and the cost of repatriation with
the maritime or consular authorities. In such cases, the seaman is
entitled to the cost of medical attendance and the payment of his
wages for not more than 4 months from the time he was put ashore.
A seaman who is injured or falls ill through his own fault is entitled to
payment of his wages only for the actual period of his service.
In the case of a seaman who dies on the voyage, his wages are
payable to his dependants up to the date of death if he was engaged
by the month ; if he was engaged for the voyage, half the amount of his
wages is due if he dies on the voyage out and the whole amount if he
dies on the voyage home.
4.—Financial Resources.
In principle the cost of these benefits is borne by the shipowner,
but in certain cases liability is shared by the shipowner and freighter.
A seaman who is injured or falls ill through his own fault must
bear the cost of treatment himself, but he may require the master to
advance him the necessary sum. If a seaman who is injured or falls
ill through his own fault has to be put ashore, the master provides for
his treatment and repatriation and recovers the amount subsequently.
5.—Statistics.
Number of seamen employed on steam or sailing vessels in 1933 21,000
Number of seamen assisted in 1933
...
...
...
... 16,500

GREECE

197

FOURTH PART
HOUSING
1.—Legal Basis.
Act No. 4202, ratifying the Legislative Decree of 11 May 1929
concerning facilities granted to public officials to enable them to
acquire a dwelling through the organisation of special societies.
The Legislative Decree of 12 November 1930 extends the provisions
of this Act to cover permanent railway omcials in Greece. These
Acts were amended by Presidential Decrees of 20 June 1931 and
20 February 1932.
2.—Beneficiaries.
The persons entitled to avail themselves of the faculties granted
by this legislation are the civil and military officials of the State,
bailiffs, pensioners in general, and railway employees belonging to
building societies and covered by the Act of 1929.
3.—Institutions.
Special building societies have been set up by public officials, army
officers, pensioners, and railway employees.
4.—Financing by Public Authorities.
The facilities granted under the above legislation are as follows :
exemption from transfer fees for houses already built ; exemption from
fees on the purchase or sale of building land ; exemption from all transfer fees on documents relating to loans ; exemption from import duties,
rates, port dues and other special taxes on imported building materials ;
exemption from the real property tax for the interest on the loans
contracted, this interest being excluded in calculating the total tax
payable by the borrower ; exemption from all land taxes for a term of
25 years, and from the house property tax, income tax and municipal
rates and taxes for all houses built or purchased.
These exemptions apply only to dwellings built or purchased by
public officials the total value of which is not more than 500,000
drachmas. If the value of the dwelling exceeds this figure, the extra
amount is not entitled to the benefit of the fiscal advantages specified
above.
5.—Statistics.
At 31 December 1934 there were 304 special building societies,
including six societies for railway officials.

198

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

F I F T H PART

FAMILY ALLOWANCES
The system of family allowances is infrequent in Greece. It is
practised in certain gas, electricity and transport undertakings.
Family allowances are payable to all workers in these undertakings
for every child up to the fifth (in one undertaking, only for every child
up to the fourth for the mother).
An allowance is also payable to unmarried workers whose mother
is dependent upon them. The children's allowances are continued
until the child reaches the age of 16 years, or up to 18 or 20 years if
the child continues his education. In the event of an occupational
accident, family allowances are taken into account in assessing the
compensation.
There is no equalisation fund.
The allowance is paid directly to the worker.

SIXTH PART

HOLIDAYS W I T H PAY
1.—Legal Basis.
The Legislative Decree of 21 September 1926 concerning hours of
work in commercial undertakings, codified by a Decree of 8 April 1932,
contains certain provisions concerning annual holidays with pay.
2.—Scope.
The Decree covers persons employed in commercial undertakings,
including hairdressing establishments, situated in towns with a
population of more than 10,000 and employing at least 2 persons ; the
employees of limited companies and banks, irrespective of the number
of persons employed ; and employees in offices situated in towns with
a population of over 10,000 and employing 2 persons or more.
3.—Conditions for Granting and Length of Holidays.
Annual holidays are due to all workers who have been employed
in the undertaking for at least a year.
The uniform length of the holiday is 15 days a year.
The worker is entitled to the payment of his full wages during the
holiday period.

HUNGARY
SUMMARY
PAGE
F I B S T PART :

Statistics of Population

200

SECOND P A B T :

Social Insurance

201

I.—Workmen's Compensation
II.—Sickness Insurance
III.—Invalidity, Old-Age, and Widows' and
Orphans' Insurance

201
205
209

T H I B D PART :

Social Assistance

214

FOURTH P A S T :

Housing

217

FIFTH PABT :

Family Allowances

...

219

SIXTH P A B T :

Holidays with Pay

...

220

200

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

FIRST PART

STATISTICS OF POPULATION 1
(1930 Census)
Total population
Occupied population

...

8,688,319
3,829,752

OCCUPIED POPULATION CLASSIFIED B Y OCCUPATIONAL G R O U P S AND
INDUSTRIAL STATUS

Occupational
group

Agriculture, forest r y , fishing
Mines, quarries, salt
mines and blast
furnaces...
Industry ...
Transport and communications
Commerce, banks,
insurance
Public administratration,
liberal
professions
National defence ...
Domestic service ...
Day labourers
Other occupations
(house
porters,
musicians, etc.)
Occupied
tion*

popula-

700,466

5,611

Foremen,
workers,
clerks,
labourers,
apprentices,
domestic
servants,
etc.
788,386

30
216,516

1,165
43,372

9,335
83,995

Independent Salaried
(employers)» employees

Total

536,988

2,031,451

33,987
619,214

7,574

35,182
886,676

21,124

82,262

568

113,289

57,865

74,391

9,832

226,083

117,999
5,604

58,078
35,418
176,987
61,046

295

36,024

62,204

253,035

1,965,793

554,971

3,829,752

19,735

25,876
1,055,953

Members
of
family
working
at home

195,812
41,022
176,987
61,046

i SOUEOE : Royal Hungarian Central Statistical Office ; General Census of 1930.—Hungarian
Statistical
Publications, new series. Vol. 86, Part II, Occupational data. Budapest, 1935.
2
Including heads of undertakings, workers making up goods at home, itinerant craftsmen,
homeworkers, hawkers, etc.
3 Excluding housewives, retired persons and persons living on unearned income, pensioners,
students and pupils, assisted persons, persons in detention, beggars and gypsies, vagrants, etc.

HUNGARY

SECOND

201

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
A.—WORKMEN'S

C O M P E N S A T I O N EST I N D U S T B Y A N D C O M M E B C E

1.—Legal Basis.
Compulsory insurance against industrial accidents and occupational
diseases in industry and commerce is governed by Act No. XXI of
3 August 1927, the complementary Orders 9090/31 M.E.,
185180/32 B.M., 185500/32 M.E., 9600/32 M.E., 6000/33 M.E.1 and by
the Decree of 13 January 1928 containing the list of occupational
diseases for which compensation may be claimed.
2.—Scope.
Insurance is compulsory, irrespective of age, sex or nationality,
for all employed persons, including apprentices and voluntary probationers, in industry, mines, quarries, building, transport, and
inland navigation, as well as for domestic servants and home workers.
Agriculture, forestry, cattle-rearing, fishing and horticulture are
not covered by the Act of 3 August 1927.
3.—Administration.
The insurance scheme is administered by the National Social
Insurance Institution and its local branches—district funds and
work funds.
The National Institution is managed by a general meeting, a
governing body, a presidential board and compensation boards ;
insured persons and their employers have an equal number of
representatives on the various bodies.
The district funds are also administered by joint bodies.
A works fund may be set up by any employer normally employing
not less than 1,000 persons liable to insurance, provided that twothirds of these persons agree. The cost of administering such a fund
must be borne by the employer, who is also responsible for its
financial stability.
4.—Financial Resources.
The resources required for benefits, working expenses and reserves
are obtained from employers' contributions. The sums collected are
divided into a general and a mining fund, the latter being for mines,
iron and steel works and subsidiary undertakings, while the general
fund covers all other undertakings and establishments.
The employer's contribution is proportionate to the risk coefficient
of the type of undertaking and the wages of insured workers. Any
fraction of wages in excess of 3,600 pengö a year is ignored in reckoning
contributions.
1
During 1935 the workmen's compensation laws were amended on a number
of points by Order 6500/35 M.E.

202

INTERNATIONAL StTBVEY OF SOCIAL SERVICES, 1933

Persons employing only domestic servants, or normally employing
not more than five workers and not using power-driven machinery or
steam boilers, pay a flat rate of 0 • 08 pengö a week in respect of each
insured person employed by them.
5.—Benefits.
The insurance covers the risk of accidents occurring to the
employed person in the undertaking, or outside the undertaking if he
is engaged in work on behalf of the undertaking or connected therewith
or incidental to his position as an employed person. Occupational
diseases resulting from lead or mercury poisoning or anthrax infection
entitle the worker to compensation in the same way as for industrial
accidents.
(a) Benefits in kind.
Victims of accidents are entitled, free of charge, to medical
attendance and drugs, including therapeutic and orthopaedic appliances ; during the first ten weeks after the accident the cost is borne
by the sickness insurance scheme, which does not, however, provide
costly therapeutic appliances.
(b) Benefits in case of incapacity.
1. A worker who is temporarily incapacitated receives a daily
allowance equal to 50 per cent, of his basic wage for the first 20 weeks
of incapacity ; when this allowance ceases and until the end of the
medical treatment, he receives an allowance (treatment allowance)
equal to two-thirds of his basic wage.
2. If a worker's earning capacity is permanently reduced by more
than 15 per cent., he is entitled to an accident pension equal to
two-thirds of the basic Wage in the case of total incapacity or, in the
case of partial incapacity, a proportionate fraction of that amount.
A proportionate pension granted for a loss of earning capacity of
more than 15 but not more than 25 per cent, is payable only for a
period of two years from the date when it Was first awarded.
If an insured person is not only incapacitated but also requires the
constant help of another, his pension may be increased, but may
never exceed the amount of his basic wage.
(c) Benefits in case of death.
Pensions may be claimed by the widow, children, and, in some
cases, other near relatives of the deceased.
1. The widow's (or invalid widower's) pension is 20 per cent, of the
basic wage of the deceased. If the widow remarries, the pension is
commuted for a sum equal to three times its annual value.
2. Every legitimate or legitimised child under 16 years of age is
entitled to a pension equal to 15 per cent, of the deceased person's
wage ; if the child has lost both parents, the pension is 30 per cent.
The pension continues to be paid after the sixteenth year if the child
is unable to earn a living because of some physical or mental defect.
I t may be paid until the completion of the twenty-fourth year to
enable the child to complete his studies or vocational training.
The widow's and orphan's pensions together may not exceed twothirds of the annual wage.

203

HUNGARY

3. When the widow's and orphan's pensions do not reach this
maximum, parents or grandparents maintained by the deceased are
entitled to the balance, but only up to a maximum of 20 per cent, of
the basic wage.
In addition to the pension, a funeral allowance equal to thirty
times the daily basic wage is paid on the death of the insured person.
6.—Statistics.
Average number of insured persons in 1933

...

719,629

General Branch
INCOME AND E X P E N D I T U R E F O B 1933

(in thousands ol pengö)
EXPENDITURE

INCOME

Employers' contributions ...
Premiums
of
voluntarily
insured
Outstanding contributions ...
Supplementary contributions
State subsidies
Other income
Total

8,183
778
301
114
296
126

Pensions and allowances
Cost of administration
Other expenditure ...
Reserves to meet employers'
liabilities

Total

9,798

BALANCE S H E E T AT 31 D E C E M B E R

7,628
1,120
550
500

9,798
1933

(in thousands oí pengö)
ASSETS

Cash in hand ...
Current accounts
Securities
Real property
Furniture a n d fittings
Stocks of materials ...
Contributions due from em
plovers
Miscellaneous debts ...
Suspense accounts ...
Balance to be collected from
employers in respect of the
distribution of expenditure
for the year

LIABILITIES

40
77
144
2,038
427
18

Debt to reserve fund
Reserves
Surplus contributions
Creditors
Advances on contributions
Sums due to old-age insurance

8,539
64
79

.
8,183
Total

19,609

Total

4,605
4,152
550
60
5
10,237

19,609

Mining Branch
INCOME AND E X P E N D I T U R E FOR 1933

(in thousands of pengö)
INCOME

Employers' contributions
Outstanding contributions
State subsidies
Other income
Total

EXPENDITURE

1,328
61
39
1
1,429

Pensions and allowances
Cost of administration
Other expenditure ...
Reserves to meet employers'
liabilities
Total

1,183
147
96
3
1,429

204

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T AT 31 D E C E M B E R

1933

(In thousands of pengö)
ASSETS

Cash in hand ...
Current accounts
Beai property
Furniture and fittings
Sums due from employers
Miscellaneous debts
Suspense accounts ...
...
Balance to be collected from
employers in respect of
expenditure for the year

Total

LIABILITIES

5
7
191
19
515
13
14

Debt to reserve fund
Reserves
Surplus contributions
...
Creditors
Advances on contributions ...
Sums due to sickness insurance

1,642
71
3
123
4
249

1,328

2,092

Total

2,092

B.—WORKMEN'S COMPENSATION IN AGMCTJXTUBE

1.—Legal Basis.
Accident insurance in agriculture is governed by Act No. XVI of
1900 as amended by Acts No. XIV of 1902, VIII of 1912, XX of 1913
and II of 1922.
2.—Scope.
Insurance is compulsory for farm servants, workers in charge of
agricultural machines, persons employed by forestry or irrigation
undertakings administered by the Ministry of Agriculture, and
seasonal workers engaged as farm servants for more than a month.
3.—Administration.
The insurance is administered by the National Agricultural
Workers' Fund, managed by an executive comprising a chairman
appointed by the Government, four representatives of foundation
members, four delegates appointed by the competent Minister, and
four delegates of the local committees. A local committee, consisting of four representatives of the communal authorities, four
representatives of the employers and four of the insured persons,
exists in every commune with fifty or more insured persons.
4.—Financial Resources.
These are obtained from employers' contributions and State
subsidies.
5.—Benefits.
The insurance covers accidents occurring in the course of employment and involving loss of earning capacity or death.
(a) Benefits in kind.
The victim of an accident is entitled to free medical attendance
and drugs.
(b) Benefits in case of incapacity.
1. In case of temporary incapacity, a daily allowance of 1 -20 pengö
is paid for not more than seventy days. Farm servants may not
claim this allowance, but they are entitled to their full wage at the
employers' expense for not more than thirteen weeks.

205

HUNGARY

2. When a loss of earning capacity of 25 per cent, or over persists
beyond the first ten weeks after the accident, the victim is entitled to
a pension, which in the case of total incapacity is equal to 288 pengö
a year, reduced proportionately in the event of partial incapacity.
Farm servants can claim the pension only after thirteen Weeks have
elapsed.
(c) Benefits in case of death.
The deceased's family receives a lump sum of 480 pengö. If the
deceased leaves more than two children under the age of 14 years,
the allowance is increased by 120 pengö for the third and each subsequent child, up to a maximum of 960 pengö.
6.—Statistics.
Number of insured persons in 1933

...

672,627

1933

INCOME AND E X P E N D I T U R E FOR

(in thousands of pengö)
EXPENDITURE

INCOME

Employers' contributions
Premiums, chiefly for workers
in charge of machinery
Interest on capital and other
income
Reserve of premiums collec
ted during preceding year..
Total

397
610
293
5,389

Daily allowances
Pensions
Benefits on death
Other cash allowances
Medical assistance and drugs
Cost of administration
To reserve fund

6,689

Total

BALANCE S H E E T AT 31 D E C E M B E R

87
359
42
12
257
80
5,852
6,689

1933

(in thousands of pengö)
LIABILITIES

ASSETS

Securities (movable property)
Real property
...
...
Mortgage loans
...
...
Total

787
33
5,250

Temporary receipts ...
Mortgage debt
Reserves
...
...

6,070

Total

...
...

1
217
5,852
6,070

H.—Sickness Insurance
1.—Legal Basis.
Compulsory sickness insurance is governed by Act No. XXI of
3 August 1927 as amended on several occasions and notably by the
Orders 9090/31 M.E., 185180/32 B.M., 9600/32 M.E. and 6000/33 M.E. 1
2.—Scope.
Insurance is compulsory for the persons employed in industrial
and commercial undertakings and domestic servants who are
covered by the workmen's compensation legislation, with the exception
of non-manual workers whose remuneration exceeds 300 pengö a
month (3,600 pengö a year).
1
During 1935 sickness insurance was amended on a number of points b y
Order 6500/35 M.E.

206

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

3.—Administration.
Insurance is administered by the National Social Insurance
Institution and its local branches : district funds and works funds.
The insurance of domestic servants is managed by a special section
financially independent of the general section, -which includes all other
classes of compulsorily insured persons.
The National Institution is managed by bodies on which employers
and insured persons are represented in equal numbers : the general
meeting, the governing body and the presidential board.
Apart from the National Institution, there are several special
institutions providing sickness insurance for certain classes of employed persons : private employees in industry and commerce, persons
employed by the State railways, private railways, the State postal
service, the Post Office Savings Bank, the State tobacco factories,
inland navigation and mining undertakings.
4.—Financial Resources.
The resources are obtained from contributions, half being paid by
the insured persons and half by their employers. The rates vary with
different institutions ; they are reckoned either in proportion to actual
earnings or by a system of wage classes; in the former case the
contribution may not exceed 7 per cent, of the actual remuneration,
and in the latter, 6 per cent, of the average daily Wage. The contribution for domestic servants is fixed at a uniform rate of 3 pengö
a month, or 0 • 10 pengö a day.
5.—Benefits.
The insurance covers the risks of sickness and maternity and pays
funeral benefit.
(a) Sickness.
Insured persons are entitled to the following benefits :
(a) Medical attendance and drugs, including therapeutic appliances,
baths, mineral waters, etc., from the first day of illness, for a period
of not more than one year.
(b) A sickness allowance of 50 per cent, of the basic daily wage,
payable from the fourth day of incapacity for not more than one
year. For domestic servants, this allowance is fixed at the uniform
rate of one pengö a day for not more than one year.
Full maintenance in hospital may be given in place of medical
attendance and sickness allowance ; in that case the insured person's
family is entitled to an allowance equal to half the sickness allowance.
The insurance institution is not required to repay the cost of hospital
treatment for more than 28 days per annum per insured person;
after such period it refunds up to half of the sickness allowance to
which the sick person would have been entitled had he been treated
at home.
(c) Medical attendance and drugs for the members of the insured
person's family from the first day of illness for not more than one
year. The family includes : consort, children, grandchildren, brothers

207

HUNGARY

and sisters up to the age of 16 years and parents or grandparents over
the age of 60 years. Children, grandchildren, brothers and sisters
may claim benefits up to the age of 21 if they are not earning a living
because they are continuing their education or vocational training.
(b) Maternity.
In the event of childbirth insured women may claim :
(a) The attendance of a doctor or midwife before, during and
after confinement ;
(b) A daily allowance, equal to half of the average daily wage, for
the six weeks immediately preceding confinement ;
(c) A daily confinement allowance, equal to one-half of the average
daily wage, for six weeks after confinement ;
(d) A nursing allowance of 0-60 pengö a day for the 12 weeks
after the cessation of the confinement allowance provided she nurses
the child herself.
The wife of an insured person is also granted maternity assistance, including the attendance of a doctor or midwife, a daily allowance
of 0-40 pengö for six weeks before and six weeks after confinement,
and a nursing allowance of 0-30 pengö a day for 12 weeks thereafter.
(c) Death.
If an insured person dies, his family receives an allowance for
funeral expenses equal to 30 times the average daily wage of the
deceased.
6.—Statistics.
A.—National Social Insurance Institution
Average number of insured persons in 1933 ...

...

460,651

General Branch
INCOME AND E X P E N D I T U R E FOE

1933

(in thousands of pengö)
INCOME

Contributions of insured persons and employers
...
Other income

Total

EXPENDITUBE

30,761
3,914

34,675

Sickness benefits
Allowances to families of sick
persons
Confinement allowances
Funeral benefits
Transport of sick persons ...
Hospital
and
sanatorium
treatment ...
Medical fees ...
Drugs
...
...
...
Dispensary fees
Other expenditure ...
Balance
Total

7,691
437
1,475
364
292
7,338
3,749
1,995
1,320
9,996
18
34,675

208

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in thousands of pengö)
ASSETS

LIABILITIES

Cash in hand ...
235
Postal current account
435
Bank current account
458
Deposits
146
Securities
House property
16,209
Furniture and fittings
3,626
Stocks of materials
527
Contributions due from employers
3,514
Miscellaneous debts ...
3,214
Suspense accounts
443
Amount payable by the general
branch towards the 1932sickness insurance deficit
7,252

Initial capital ...
...
... 16,585
Reserve fund
34,341
Various creditors
...
...
4,721
Suspense accounts
...
...
14
Sums due by sickness insurance
to other branches of insurance
5,311
Surpluses of district funds a t
disposal of i nstitutions
...
1,688
Surplus contributions...
...
381
Credit balance ...
...
...
18

Total

63,059

Total

Special Branch for Domestic
Average number of insured persons in 1933 ...

63,059

Servants
141,477

INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of pengö)
E X P E N D ITURE

INCOME

Contributions of insured persons and employers...
Other income ...
Debit balance ...

4,972
723
28

Sickness benefits
Confinement allowances
Funeral benefits
Transport of sick persons ..
Hospital and sanatorium treat
ment ...
.
Drugs ...
Medical fees
Dispensary fees
Other expenditure

5,723

Total

BALANCE S H E E T AT 31 D E C E M B E R

835
275
37
31
1,670
260
628
184
1,783
5,723

1933

(in thousands of pengö)
LIABILITIES

ASSETS

Cash in hand ...
...
...
Postal current account
...
Stocks of materials ...
...
Contributions due from employers
...
...
...
Miscellaneous debts ...
...
Suspense accounts
...
...
Amount payable by the special
branch for domestic servants
towards the 1932 sickness
insurance deficit
...
...
Debit balance
Total

38
47
59
5,198
395
73

Initial capital ...
...
...
Surplus payments by employers
Miscellaneous creditors
...
Debts to old-age insurance ...

5,431
44
564
1,798

2,000
27
7,837

Total

7,837

209

HUNGARY

B.—Special Institutions
CONTRIBUTIONS AND EXPENDITURE FOB 1933 '

Insurance
institution

Salaried employees in industry a n d commerce ...
State railways
Private railways
P o s t Office
Inland navigation.
P o s t Office S a v i n g s B a n k . . .
S t a t e tobacco factories
...
Miners
Total

Average
number
of
insured
persons

53,389
93,599"!
5,291 1
27,838 f
10.285J
1,936
16,039
45,780
391,170

Insured
persons'
and
employers'
contributions

Expenditure
on
benefits
in cash
and in
kind

Cost
of
administration

(pengö)

6,096,609

6,187,909

712,171

9,065,520

8,613,491

481,563

135,739
857,688
3,895,853

125,911
811,416
3,591,207

4,773
1,956
290,343

20,051,409

19,329,934

1,494,806

m.—Invalidity, Old-Age, and Widows' and Orphans'
Insurance
A.—SCHEME FOR PERSONS EMPLOYED IN INDUSTRY AND COMMERCE

1.—Legal Basis.
Compulsory invalidity,
for persons employed in
Act No. XL of 28 July
9090/31 M.E., 185180/32
6000/33 M.E.

old-age and widows' and orphans' insurance
industry and commerce is governed by
1928 and by the complementary Orders
B.M., 185500/32 M.E., 9600/32 M.E. and

2.—Scope.
Insurance is compulsory for all persons liable for sickness insurance—i.e. persons employed for remuneration in industrial or commercial undertakings or establishments and domestic servants.
Salaried employees and non-manual workers paid by the month or
year are liable only if their remuneration does not exceed 500 pengö
a month or 6,000 pengö a year.
Act No. XL of 1928 does not apply to persons employed in
agriculture or similar occupations.
3.—Administration.
The insurance scheme is administered by the National Social
Insurance Institution and its local branches : district and works
funds. The scheme for salaried employees and non-manual workers
is administered by a separate body—the Insurance Institution for
Salaried Employees.
The administrative bodies of both Institutions are managed
jointly by insured persons and their employers, who are equally
represented at the general meeting and on the governing body,
presidential board, pension assessment board, pensions committee,
financial supervision board and the committees of the district funds.
X G 14641

210

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Works pension funds in existence on 1 January 1928 insure the
staff of the undertaking in question provided that their rules have been
approved by the competent Minister. Approval is granted only if the
undertaking has a capital of 2 million pengö or over and the fund has
at least 100 members.
4.—Financial Resources.
The financial resources are obtained from contributions paid in
equal shares by the insured persons and their employers, together with
State subsidies.
Contributions are fixed either by wage classes or in proportion to
the actual wage. On the former basis the contribution may not
exceed 3 • 5 per cent, of the average daily wage for each class in the
Case of workers or 4 • 3 per cent, in the case of salaried employees ; on
the latter basis the maximum is 4 per cent, of the actual wage for
workers and 5 per cent, for employees.
The State pays one million pengö a year towards the administrative
expenses of the invalidity, old-age and widows' and orphans' schemes
of the National Social Insurance Institution and the Insurance Institution for Salaried Employees. From the year 1933-1934 onwards, the
State also pays a fixed annual contribution.
5.—Benefits.
Invalidity, old-age, widows' and orphans' pensions are paid, and
in some cases lump sums to survivors; benefits in kind are also
provided in the form of curative and preventive treatment.
(a) An invalidity pension is paid to an insured person who is
permanently disabled to the extent of 6 6 | per cent, in the case of
workers and 50 per cent, in the case of salaried employees, provided
that they have paid contributions for a period of 200 weeks (100 weeks
in the case of those who are blind). The pension is also paid to
persons, who, while not permanently incapacitated, have been invalids
uninterruptedly for a year and have ceased to be entitled to sickness
benefit.
The pension consists of a basic amount of 120 pengö a year and a
fraction equal to 24 per cent, of the contributions paid in the case of
workers and 19 per cent, in the case of salaried employees. An
additional sum, equal to 5 per cent, of the pension, is paid in respect
of each child maintained by the pensioner and under the age of 15,
or in some cases 17 (18 for salaried employees) ; the total supplements
for children may not exceed 20 per cent, of the pension.
(6) An old-age pension is due at the age of 65 years if 400 weekly
contributions have been paid (200 for the blind). The pension is
reckoned in the same way as the invalidity pension.
(c) The widow's pension is equal to half the pension to which the
deceased was or would have been entitled in the event of invalidity.
The widow of a worker receives a pension at the age of 65 years or in
the event of premature invalidity. The widow of a salaried employee
receives a pension without any condition of age or invalidity. If the
widow remarries, her pension is commuted for a sum equal to three
times its. annual value.

211

HUNGARY

(d) The orphan's pensimi is equal to 15 per cent, of the insured
person's pension, or 30 per cent, if the child has lost both parents.
The pension is payable up to the age of 15 years in the case of a
worker's orphan, or 18 years in the case of a salaried employee's
orphan.
The widow and children are entitled to pensions only if the
qualifying period of 200 contribution weeks had been completed. The
total amount of their pensions may not exceed the pension to which
the deceased was or would have been entitled in the event of invalidity.
The invalidity, old-age and widows' and orphans' insurance
scheme is responsible for organising the necessary medical services to
prevent invalidity amongst the insured population, delay threatened
invalidity, and reduce temporary invalidity. For this purpose the
insurance institutions may set up and manage hospitals and similar
establishments.
6.—Statistics.
National Social Insurance Institution
Invalidity, old-age and widows' and orphans' insurance : Average number
of insured persons in 1933 : 372,285.
INCOME AND E X P E N D I T U R E FOR 1933

(in thousands of pengb)
INCOME

EXPENDITURE

Contributions, recognition fees
and charges on arrears for
compulsorily insured persons 12,760
Contributions and recognition
fees for voluntarily insured
persons
4
State subsidy
525
Cost of administration refunded
b y Salaried Employees' Insurance Institution...
351
Total

Cost of administration
... 1,983
Cost of administration refunded
to Inland Navigation Insurance Institution...
...
3
Expenditure on behalf of
Health Fund
699
Reserve contributions fund for
compulsorily insured persons 10,952
Reserve contributions fund for
voluntarily insured persons
3
Total

13,640

BALANCE S H E E T AT 31 D E C E M B E R

13,640

1933

(in thousands of pengö)
LlABILITrES

ASSETS

Cash in hand ...
Postal current account
Bank current account
Securities
Real property ...
Fittings and furniture
Stock of materials
Contributions due from employers
Miscellaneous debts ...
State debt
Assets in suspense
Sum due from other insurance
branches
Total

71
37
18,082
385
16,462
230
38
19,951
204
23,473
80

73,069
Initial capital ...
22,148
Reserve fund ...
Contributions still to be paid to
Salaried
Employees'
In1,186
surance Institution...
Surplus contributions collected
for Salaried Employees' I n 13
surance Institution...
160
Miscellaneous creditors

17,563
96,576

Total

96,576
O 2

212

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Salaried Employees' Insurance Institution
Average number of insured persons in 1933 : 78,390.
INCOME AND E X P E N D I T U R E F O B

1933

(in thousands of pengò)
INCOME

EXPENDITUBE

Contributions of compulsorily
insured persons
6,866
Voluntary contributions
...
94
Recognition fees
1
Charges on arrears
...
...
1,101
Interest on capital
...
...
1,561
Return on real property
...
445
Sum paid by works' pension
funds to Health F u n d
...
105
Profit on securities ...
...
7
State subsidy ...
...
...
41
Decrease in employers' arrears
93
Total
10,322

Cost of administration
...
Pensions
Fall in value of real property
Health fund
Reserve contributions fund ...
Increase in employers' arrears
Miscellaneous expenditure ...

Total

BALANCE S H E E T AT 31 D E C E M B E R

492
83
107
603
8,030
854
153

10,322

1933

in thousands of pengö)
ASSETS

LIABILITIES

Current account
...
...
Securities
Mortgage loans
...
...
Real property ...
...
...
Real property of Health Fund
Miscellaneous debts ...
...
Employers' arrears ...
...
Interest in suspense ...
...
Miscellaneous ...
...
...

Total

15,187
11,896
1,392
12,430
1,763
23
5,158
123
363

... 48,335

B.—SPECIAL

Reserve contributions fund for
compulsorily insured persons ...
38,902
Reserve contributions fund
for voluntarily insured persons ...
150
2,994
Health fund
Reserve contributions transfer
927
fund ...
Property depreciation reserve
fund ...
204
5,158
Employers' arrears
Total

... 48,335

SCHEME FOB MINERS

1.—Legal Basis.
Compulsory invalidity, old-age and widows' and orphans' insurance
for miners is governed by Act No. XXXIV of 18 November 1925 and
the Orders of 23 December 1926, 17 December 1928, 12 February 1929,
9 January 1931, 8 October 1932 and 20 October 1933.
2.—Scope.
- Insurance is compulsory, irrespective of age, sex ór nationality,
for all workers employed in mining and metal undertakings or subsidiary plant covered by the Mining Act. Salaried employees, foremen

HtTNGAEY

213

and supervisors paid by the month or year are liable to insurance only
if their remuneration does not exceed 500 pengö a month or 6,000 pengö
a year.
3.—Administration.
The insurance scheme is administered by the National Social
Insurance Institution, which includes a financially independent
mining section.
The staff of the State mining undertakings is insured by two
mutual aid funds set up in the undertakings in question (Diosgyör,
Komló).
4.—Financial Resources.
The resources of the scheme comprise contributions paid in equal
fractions by the insured persons and their employers.
Contributions are fixed by wage classes, the rate being fixed annually
for each class by the Minister of the Interior. In 1933 it was 5 • 25 per
cent, of the basic wage for each class in the case of workers and
6 • 25 per cent, for salaried employees.
5.—Benefits.
The scheme provides for invalidity, old-age, widows' and orphans'
pensions, and, in certain cases, lump-sum payments to survivors.
The insured person must complete a qualifying period of 10 years'
mining work before he or his dependants are entitled to a pension.
(a) The old-age pension falls due at the age of 65, or 60 years after
40 years of mining work or 25 years underground. The pension is
equal to 20 per cent, of the basic amount (varying for each wage
class) with an additional 2 per cent, for every contribution-year
beyond the tenth, up to a maximum of 80 per cent, of the basic
amount.
(b) The invalidity pension is paid when there is a loss of occupational
earning capacity of 50 per cent.; it is reckoned in the same way as
the old-age pension.
(c) The widow's pension, payable without any condition of age or
invalidity, is equal to half the pension to which the deceased was or
would have been entitled in the event of invalidity.
(d) The orphan's pension is 15 per cent, of the deceased's pension
when the child has lost one parent, 50 per cent, if it has lost both
parents. This pension continues until the age of 16 years, or 24 years
if the child is still studying. Children who cannot earn a living
because of infirmity continue to draw the pension so long as this
condition lasts.
Widows' and orphans' pensions may not exceed the total pension
of the deceased.
If death occurs before completion of the qualifying period, the
survivors receive a lump sum equal to one annual instalment of the
deceased's pension.

214

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
National Social Insurance Institution
Mining Section
Average number of insured persons in 1933 : 40,148.
1933

INCOME AND E X P E N D I T U R E FOB,

(in thousands of pengö)
ExPENDlTUBE

INCOME

Contributions of insured persons and their employers ...
State subsidy ...
Other income ...

3,324
44
436

3,804

Total

Invalidity and old-age pensions
Survivors' pensions ...
...
Lump sum compensation to
survivors
...
...
...
Benefits in kind (pro memoria)
Cost of administration
...
Sum paid to reserve fund ...
Other expenditure
...
...
Debit balance ...
...
...
Total

BALANCE S H E E T AT 31 D E C E M B E R

2,423
899
3
—
165
164
56
94
3,804

1933

(in thousands of pengö)
LIABILITIES

ASSETS

Cash in hand ...
Postal current account
Bank current account
Securities
Real property
Contributions due from em
ployers
Miscellaneous debts ...
Sums due from other insurance
branches
Total

5
284
1,289
5,407
1,620

Actuarial reserves
Reserve fund ...

8.914
325

602
1
31
Total

9,239

THIRD

SOCIAL

9,239

PART

ASSISTANCE

1.—Legal Basis.
In 1931 and 1932 a number of fundamental Decrees were introduced dealing with social assistance. These included Decree
No. 6000/31 M.E. concerning the covering of the cost of assistance for
sick persons, the protection of childhood and poor relief, Decree
No. 400/32 N.M.M. introducing regulations concerning the prescription
and dispensing of medicines and therapeutic appliances for sick persons
in necessitous circumstances and the refund of the cost of such
medicines and therapeutic appliances, Decree No. 1300/32 N.M.M.
relating to hospitals and curative establishments.

HUNGARY

215

The following legislation was also in force in 1933 :
Medical assistance : Acts Nos. XIV of 1876 and XXXVIII of 1908
concerning public health.
Maternity assistance : Decree No. 39088 B.M. of 1917 ;
Child welfare : Acts Nos. VIII and XXI of 1901 and Decrees
Nos. 1 B.M. of 1903 and 2000 N.M.M. of 1925.
2.—Beneficiaries and Administration.
(a) Poor Relief.
Persons unable to maintain themselves may apply for public
relief, which is payable in the first instance by the communes.
Persons in necessitous circumstances who are unable to maintain
themselves without public relief are assisted by the commune (town)
in which they are living when relief becomes necessary (commune of
residence). The commune of residence may ask the commune of origin
of the person in receipt of relief for a refund of the cost of relief. For
purposes of relief, the commune of origin is deemed to be the commune
(town) in which the indigent person has resided for the longest period
during the five years preceding the allocation of relief.
The commune (town) which grants relief may demand a refund of
the cost of relief from the person assisted or from his or her consort,
father, mother or children.
The commune of origin, which is required to refund the cost of
relief, may demand that a person in need of permanent relief be sent
back within its boundaries. The cost of transport thus entailed is met
by the commune of origin.
The credits necessary to cover the cost of poor relief must be
included in the communal estimates.
The assistance consists in the offer of employment, relief in cash
and in kind, admission to a home, etc. The extent and methods of
assistance depend on local conditions. The communes grant such
relief and care as are required to satisfy essential human needs. The
regulations on the subject in Budapest and several other towns
guarantee a higher level of assistance.
A number of communes within the same county may unite for the
purposes of public assistance, or the county may itself decide to initiate
a single relief fund for all its communes. Each commune keeps a
register of persons in receipt of relief so as to determine the probable
cost and the sums required by the relief fund.
(b) Assistance for the aged and infirm.
Aged and infirm persons or invalids who are destitute but do not
require hospital treatment are assisted directly by their commune of
origin in accordance with Decree No. 6000/31 M.E.
(c) Medical assistance.
Medical assistance for persons who have not sufficient resources is
provided either by the State or by the communes.
Sick persons in necessitous circumstances are attended by the
medical officers of the commune or district. They are treated either

216

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

at home or in hospital or in the travelling surgeries of the State,
county or municipal hospitals, or in tuberculosis or venereal diseases
dispensaries.
Every town or commune with 5,000 inhabitants or over must
employ a medical officer ; smaller communes are grouped into districts
for this purpose.
(d) Maternity assistance.
Women in necessitous circumstances can obtain the services of
the communal midwife. Every town or commune must have a certificated midwife ; one may be engaged jointly by two communes not
more than two kilometres apart with a joint population not exceeding 1,600.
A great part of the welfare work is entrusted by the State to the
National Stephana Federation, which advises and helps women before
and after childbirth. The registries of births have to inform the
Federation of every birth, and a welfare worker is then sent to enquire
into the mother's circumstances, give assistance in cash and in
kind, etc.
(e) Child welfare.
Children with no near relatives able to maintain them or living
in an atmosphere detrimental to their morals must be placed in
State homes. Most foundling children are sent to families for maintenance and training.
Infirm or sick children are placed in State homes or other social
institutions.
All foundling children are cared for at the expense of the State
until the age of 15 or, in exceptional cases, 18 years.
3.—Financial Resources and Statistics.
(a) Poor relief.
In principle it is the commune of origin that is responsible for
providing relief. When the cost exceeds its means it may apply to the
county or, in the last resort, to the State. Each commune must
include in its estimates a sufficient sum to cover the cost of relief
and the maintenance of a relief fund.
The resources of the fund comprise the income from fines and
similar receipts and the yield of special taxes for the purpose.
Act No. XV of 1883 concerning county finance made provision
for a tax of 3 per cent, in addition to that levied directly by the State.
The same Act authorised the counties to levy an additional tax of
2 per cent., also for relief purposes. Under other Acts, half the yield
of certain fines and of the sale of confiscated goods or lost property
goes to the communal relief fund. In addition, entertainment tax
and certain other dues are devoted to poor relief. Towns and communes
of over 5,000 inhabitants were empowered by Decree No. 5600 of
1930 to levy a single non-recurrent emergency relief tax equal to
8 per cent, of the taxes on income and on companies.

HUNGAKY

... . .

217

(b) Assistance for the aged and infirm.
This is provided by the commune of origin, that is to say, the
commune in which the assisted person has lived for the longest period
-during the five years preceding the allocation of assistance.
(c) Medical assistance.
In 1933, the Treasury paid 600,000 pengö to cover the cost of
medicines supplied to the poor, 162,000 pengö to tuberculosis dispensaries and 25,000 pengö to venereal diseases dispensaries.
(d) Maternity assistance.
During 1932-1933, the National Stephana Federation, to which
the State entrusts maternity assistance, was granted a permanent
State subsidy of 1,080,000 pengö; it also received subsidies from the
municipal authorities amounting to 1,516,335 pengö, as well as gifts
and bequests from private sources amounting to 854,137 pengö.
(e) Child welfare.
In 1933, the number of children housed in the nine State children's
homes was 31,500. The State estimates for 1932-1933 included a
credit of 7,007,760 pengö for child welfare.

FOURTH PART

HOUSING
1.—Legal Basis.
The measures to encourage the building of cheap dwellings were
regulated until 1 July 1932 by the Order of 1923 concerning redeemable
loans for cheap houses. The Act of 29 August 1931 amending the
legislation in force further facilitated the construction, and more
especially the repair, of buildings. In 1930, Act No. XLI established
the National Co-operative Building Credit Society.
In villages, building is encouraged in accordance with the rules of
the National Co-operative Society for Small Village Dwellings,
founded with State assistance in 1925.
2.—Beneficiaries.
State assistance may be obtained by persons whose means are not
sufficient for them to procure a reasonable family dwelling. The
National Co-operative Building Credit Society may grant loans to
private builders, including public servants, persons in receipt of
pensions, private officials, members of the liberal professions, etc.
The Co-operative Society for Village Dwellings provides loans in the
following order of priority : to disabled ex-soldiers, their widows and
orphans, if they possess less than three " a r p e n t s " of land; to
agricultural workers whose land is just sufficient for a house, and who
have one or more dependent children; to other persons granted building
land (smallholders, craftsmen, and industrial workers), provided they
have one or more dependent children.

218

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

3.—Authorities and Undertakings concerned in Building.
An interdepartmental Committee, composed of members nominated
by the Government, the Permanent Building Commission, and the
Central Union of Financial Institutions, considers applications for
loans. This Committee is attached to the Ministry of Commerce.
The towns and commîmes have done little building, but many of
them have provided cheap building land.
The Public Works Council in Budapest has, since 1920, made
certain concessions in connection with the provision of cheap houses
(sanctioning rooms with lower ceUings in one- and two-storey houses,
thinner walls, etc.).
The Co-operative Society for Village Dwellings does not grant
such credits, but it supplies building materials. The Society issues
vouchers, with which beneficiaries can obtain the necessary materials
from any source they choose. The Society also has its own stock of
materials, and enters into contracts with wholesale agents, who must
observe fixed prices and standards of quality. The credit granted to
builders is so calculated that the building can be made to conform
to the regulations in force and the work can be carried out largely by
the future owner and his family. The National Co-operative Building
Credit Society has been assisted in its work by the Salaried Employees'
Insurance Institution and by the National Social Insurance Institution,
which, by lending from their reserve funds, have enabled the payment
of subsidies to house building to be continued.
4.—Financing by Public Authorities.
The public authorities (State, towns, communes) do not directly
participate in the work of building; while supporting such work
through the Permanent Building Commission, they do not themselves
grant subsidies.
Houses built with the help of a redeemable loan under State
guarantee, and finished before the end of 1933, are exempt from
taxation for a period of 30 years. During 1933, the National
Co-operative Building Credit Society granted a loan of 13,300,000 gold
pengö to the National Co-operative Society for Village Dwellings. Up
to 1933, this Society had received loans amounting to 34,000,000 gold
pengö. It received no further capital from State funds in 1933.
Loans granted for the construction of workers' dwellings in the
villages do not exceed 1,500 pengö; they bear interest at the rate of
4 per cent., and are redeemable in 20 years.
Loans granted by the National Co-operative Building Credit
Society may amount to 40-60 per cent, of the value of the guarantees
provided (cost of construction, including the site) ; mortgage loans
are discounted at the rate of 90 per cent., and are redeemable in
yearly instalments at the rate- of 8 • 6 per cent. The site must be free
from all encumbrances and the builder must be able to guarantee the
payment of annual instalments from Jiis own resources.

21b

HUNGARY

5.—Statistics.
Number of dioellings built in 1933
Number oí houses .built

Budapest
Provinces
Total

107
217
324

Number of dwellings built in tenement
houses
Number of dwellings in house
3
1
2
39
61
66
30
202
263

The total number of dwellings built was actually 437, as in 39 cases
the house was bought by the borrower.
BORROWEBS CLASSIFIED B Y OCCUPATION

Officials of the State, municipalities and legal profession
Army and police ...
...
...
...
...
...
Teaching profession
...
...
...
...
...
Salaried employees of social insurance institutions and
transport and communication undertakings ...
...
Private employees...
...
...
...
...
...
Liberal professions
...
...
...
...
...
Total

94
63
41
102
48
15
363

111 1933, the National Co-operative Building Credit Society
supplied building loans aggregating 3,179,950 gold pengö.
The National Co-operative Society for Village Dwellings supplied
loans, amounting in all to 1,165,180 gold pengö, to 826 persons. Since
its foundation, this Society has issued loans amounting to 52,315,656
pengö, thus ensuring the building of houses for 37,919 persons.

F I F T H PART

FAMILY

ALLOWANCES

1.—Nature of the Regulations.
There is no general legislation on the subject. Family allowances
based on collective agreements or works regulations are rarely met
with on a large scale, except in mining and banking undertakings.
2.—Conditions for and Amount of Allowances.
Mining Undertakings.
In 1933, 14 out of the 90 existing mining undertakings granted to
their Workers and subordinate employees family allowances for each
child under 14 years of age. None of these undertakings paid allowances in respect of the worker's wife.

220

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1933
STATISTICS

Average Number of Workers employed in Undertakings paying Family Allowances
in 1933
Subordinate employees
....
898
Workers
17,848
Total

18,746

Average Number of Workers in Receipt of Family
Subordinate employees
Workers

Allowances in 1933
196
12,507

Total

12,703

Expenditure on Family Allowances in 1933
... 11,752
Subordinate employees
Workers
...221,568
Total

232,320

Thus, the average amount expended in 1933 was 59-95 pengö for
each subordinate employee and 17-72 pengö for each worker.
Banking Undertakings.
Although current legislation makes no provision for the payment
of family allowances, this matter is dealt with satisfactorily by custom.
It is customary for married employees to draw higher salaries—
perhaps 10 per cent, above the level for unmarried men, the difference
consisting either in a salary increment or in a housing allowance.
In certain, banks, allowances for children are paid, the amount
varying with the grade of the father in the service and the number
of dependent children.

SIXTH PART
HOLIDAYS W I T H

PAY

1.—Nature of the Regulations.
There is no general legislation on holidays with pay, but in quite
a number of industries and a few branches of commerce the question
is dealt with in collective agreements or works regulations.
2.—Application in 1933.
Textile Industry.
A week's holiday with pay is granted to masters after two years'
steady employment with the same firm, and to under-masters after
five years. During their holiday they are paid a quarter of their
wages for the last four weeks—in practice a week's Wages.

221

HUNGARY

Printing.
Printers who have been for eight years with the same firm, or
lithographic and Chemigraphie printers after two to eleven years'
service, are given an annual holiday of from 3 to 12 days ; bookbinders
get from 2 to 12 days after one to 9 years' service. Full wages are
paid.
Mining Undertakings.
Of the 90 mining establishments existing in Hungary in 1933,
16 granted holidays with pay to subordinate employees and workers
with two to five years' uninterrupted service and with perfect conduct ;
the length of the holiday was 8 to 14 days for subordinate employees
and 4 to 8 days for workers.
Number of subordinate employees employed by the 16
undertakings ...
...
...
...
...
...
974
Number of workers employed by the 16 undertakings... 23,355
Total

24,329

Holidays with pay were granted to 930 subordinate employees
(95-5 per cent.) and 12,742 workers (54-6 per cent.), a total of 13,672
persons (56-2 per cent.).
The cost amounted to 491,045 pengö, including 120,514 pengö for
subordinate employees and 370,531 pengö for workers. Thus, the
average cost was 129-58 pengö for each employee and 29-08 pengö
for each worker.
Banks.
Employees are given a holiday varying with length of service from
one to six weeks after one to two years' service. Full salary is» paid.
Inland Navigation.
According to the rules of the Royal Hungarian Danube Shipping
Company, permanent staff engaged by the year are entitled to a
holiday of 14 to 28 days, varying with length of service (staff paid by
the month receive 8 to 14 days' holiday).
In 1933, 913 members of the staff of this Company received
holidays with pay amounting to an aggregate of 23,008 days. The
cost was 193,442 pengö—i.e. 212 pengö per head.

LATVIA
SUMMARY
PAGE
FIRST PAST :

Statistics of Population

SECOND PART :

Social Insurance

224

I.—Workmen's Compensation
II.—Sickness Insurance
THIRD PART :

Social Assistance

224
227
230

I.—Medical Assistance for the Rural Popula
tion
II.—Unemployment Relief
FOUBTH PART : Holidays with Pay

224

...

230
231
233

224

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1933
FIRST

PART

STATISTICS OF POPULATION
CENSUS OF

1930

GAINFULLY O C C U P I E D POPULATION CLASSIFIED BY S E X AND M A I N
OCCUPATIONAL G B O U P S

Occupational group
Agriculture
Industry
Commerce ...
...
...
...
Communications and transport ...
Local and national administration
Liberal professions...
Public health
...
Domestic servants
Other occupations...
Gainfidly occupied papulation ...
Total population ...
...
...

SECOND

...

Male

Female

382,941
109,797
37,578
35,940
30,579
12,595
• 4,580
6,239
15,365

421,832
54,125
26,057
4,390
4,074
12,354
7,821
33,345
16,131

804,773
163,922
63,635
40,330
34,653
24,949
12,401
39,584
31,496

635,614
886,078

580,129
1,013,967

1,215,743
1,900,045

Total

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
Compulsory insurance against industrial accidents and occupational
discases is regulated by the Act of 1 June 1927, amended in particular
by Acts of 15 October 1929 and 15 February 1932.
2.—Scope.
Insurance is compulsory for all persons employed by private,
communal and State undertakings or establishments or by individual
employers, and for the following categories of independent workers :
sea fishermen engaged in fishing on their own account and members
of their family assisting them ; owners of agricultural undertakings
and members of their family ; handicraftsmen and small manufacturers holding fourth-class licences and members of their family.
3.—Administration.
For the following categories of persons insurance is administered
by the Ministry of Social Welfare (Industrial Accidents Section) :
State officials and employees ; persons employed in agriculture, and
owners of agricultural undertakings and members of their family;
the staff of commercial establishments and of the offices of undertakings which do not employ manual workers; employees of social
and religious institutions ; teachers ; the staffs of theatres, excluding
cinemas; professional workers employed in undertakings which do
not employ manual workers.
For all other categories, insurance is administered by a mutual
association of employers, the General Accident Insurance Union.

225

LATVIA

4.--Pinancial Resources.
The employed persons and independent workers insured with the
Ministry of Social Welfare pay no contributions, the cost of their
insurance being defrayed entirely out of public funds.
The financial resources for the workmen's compensation scheme
administered by the General Accident Insurance Union are provided
by the employers belonging to the Union. The rate of contribution,
assessed at the end of each financial year, is fixed according to a
schedule drawn up by the Union.
5.—Benefits.
The scheme covers the following risks :
(i) Accidents arising out of or in the course of employment.
(ii) Accidents incurred by seamen during their period of service,
including the journey from shore to their ship and from the ship to
their home, and during the voyage, both on shore and at sea, in
Latvia or abroad ; and also the risks of death and incapacity for work
resulting from an illness or epidemic due to climatic conditions
(including scurvy and beri-beri) ;
(iii) The following occupational diseases : lead poisoning, mercury
poisoning and anthrax infection.
(a) Benefits in kind.
Persons who incur an accident are entitled from the date of the
accident, or from the beginning of the illness, to medical treatment,
including every form of medical attendance, medicaments and other
remedies, and artificial limbs.
(b) Cash benefits.
(i) Temporary incapacity.—In case of temporary incapacity, the
injured person is entitled to a daily allowance at the rate of 70 per
cent, of the average daily wage (75 per cent, for railway workers),
calculated on the basis of his wages for the four weeks preceding the
accident. Benefit is payable from the first day of incapacity and
until recovery, or until a pension is awarded.
(ii) Permanent incapacity.—In case of permanent incapacity, the
injured person is entitled to a pension at the rate of 70 per cent, of
his annual wage (80 per cent, for railway workers), and in case of
partial incapacity, to an appropriate fraction of a sum equal to 70 per
cent, of the annual wage (80 per cent, for railway workers).
If the injured person suffers from insanity, total blindness, or loss
of both hands or both feet, or requires constant attendance, he is
awarded a pension equal to the total annual wage.
(iii) Death.—If the accident is fatal, the members of the deceased
person's family who were dependent upon him are granted funeral
benefit at the rate of 40 days' wages.
X G 14841

226

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Pensions are awarded to the heirs of the deceased at the following
rates :
Widow until remarriage ...
i of annual wage of deceased.
Children u p to 16 years (18 years
for children attending school or
| of the annual wage for each
learning a trade)
child if one parent is still living ;
£ for each full orphan.
Parents and grandparents
i of the annual wage to each.
Brothers, sisters and grandchildren who have lost both
parents, up t o 16 years (18 years
for children attending school or
learning a trade)
J of the annual wage to each.

The total amount of the pensions paid to dependants may not
exceed the amount of the pension which would have been payable to
the deceased for total incapacity.
At the pensioner's request and with the approval of. the insurance
institution, the pension may be replaced by a lump sum, provided
that, in the case of a pension for permanent incapacity, the loss of
working capacity does not exceed 20 per cent.
6.—Statistics.
(a) General Accident Insurance Union
Number of undertakings covered in 1933
Number of workers insured in 1933 ...
Number of accidents in 1933

...
...

20,207
103,884
13,498

Expenditure for Financial Year 1933
Medical treatment
Daily cash benefit
Pensions
...
L u m p sum compensation
Funeral benefit
Current risks
Administrative expenses
Transfer to pension fund
Miscellaneous expenses
Total

...
...

...
...
...

BALANCE SHEET AT 1 JAUTXABY

Lata
396,936
399,664
553,585
62,240
5,843
335,415
297,951
448,103
277,694
2,777,431

1934

(in Lata)
LIABILITIES

ASSETS

Cash
Current accounts
Bills of exchange and deposit
accounts
Real property
Debtors (including members'
deposits, 828,949 lats) ...
Agencies of towns of Liepaja
andVentspils
Furniture
Medicines and dressings ...
Sundries
...
Total

8,872
2,436,274
2,007,212
697,566
1,268,738
1,448
173,446
5,295
345
6,599,196

Pensions fund
5,197,716
Reserves
1,005,824
Amortisation of real property
41,722
Depreciation of equipment...
76,140
Creditors(including members,
38,159)
66,502
Premiums (repayable contributions)
211,292

Total

6,599,196

227

LATVIA-

(b) Industrial Accidents Section of Ministry of Social Welfare
Number of accidents in 1933 : 16,848.

Treasury Expenditure in 1933
Pensions...
...
...
...
Daily cash benefit
Medical treatment
...
...
...
Artificial limbs
Travelling and administrative expenses
Difference paid to pensioners
Total

...
...
...

Lata
621,114
113,799
346,778
445
45,541
7,622

... 1,135;299

II.—Sickness Insurance
1.—Legal Basis.
Compulsory sickness and maternity insurance is governed by an
Order of 10 July 1930 concerning sickness funds, as amended and
extended on 2 October 1930.
2.—Scope.
Insurance is compulsory for all persons employed for remuneration
in undertakings, institutions and other workplaces belonging to a
local authority or the State, or by private employers.
The scheme does not cover agricultural workers.
3.—Administration.
Insurance is administered by funds managed with the participation
of representatives of the insured persons and employers. These funds
may be works funds for single undertakings,'joint funds for several
undertakings, or trade funds for workers engaged in particular trades.
In Riga, Liepaja and Daugavpils the special works funds must have
not less than 1,000 members, joint funds not less than 3,000 members
and trade funds not less than 2,000 members. In other localities the
minimum membership is 500 for the first kind of fund and 1,000 for
the other two. The jurisdiction of the joint funds is defined by the
Minister of Social Welfare, who is responsible for supervising the
activity of sickness and maternity insurance funds.
4.—Financial Resources.
The financial resources of the scheme are derived from contributions from the insured persons, fixed by the general meeting of each
fund at a rate varying between 1 and 2 per cent, of wages, contributions at the same rate from the employers, and a State subsidy equal
to the amount contributed by the employers. The latter are also
required to pay an amount equal to 2 per cent, of wages to meet the
cost of medical benefits in kind. Since 1 May 1933 the State subsidy
has been reduced by 25 per-cent.
5.—Benefits,
Benefits are provided in the event of sickness, confinement, and
death.

228

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(a) Benefits in kind.
Benefits to insured persons.—Medical attendance to insured persons
is granted in the form of first aid in case of sudden illness, medical
treatment as an out-patient or at the patient's home, attendance
during confinement, and hospital treatment with full maintenance.
These benefits are provided for as long as the sick person continues
to be a member of the fund in case of illness not entailing incapacity
for work; in the case of illness entailing incapacity for work, and
irrespective of whether the treatment is given in hospital or as an
out-patient, benefits are granted until recovery, but for not more
than 26 weeks, and in case of relapse for not more than 30 weeks
during any one year. The general meeting may decide to prolong
this period to not more than 50 weeks, provided that the insured
person had belonged to the fund for at least one year before the
beginning of his illness.
The insured persons are required to pay 15 per cent, of the cost
of medicaments, except in cases of confinement, danger to life, and
haemorrhage.
Benefits to members of the insured person's family.—The funds may
also bear the cost of medical attendance to members of the insured
person's family who are dependent upon him, and also to persons,
assimilated to members of his family.
(b) Cash benefits.
Benefits to insured persons.—(i) Cash sickness benefit.—Sickness benefit at a rate varying between 60 and 90 per cent, of wages is paid from the
fourth day of sickness until recovery, but for not more than 26 weeks.
In case of recurring sickness, benefit is payable for not more than
30 weeks in any one year. The general meeting of the fund may
decide to continue payment of benefit for not more than 52 weeks to
insured persons who belonged to the fund continuously for at least
one year before the outbreak of sickness.
(ii) Maternity benefit.—In case of childbirth, women members of
the fund are entitled to an allowance at the full rate of their wages for
the four weeks preceding and eight weeks following confinement,
provided that they actually abstain from all paid work and that they
were insured for at least three months before confinement. The
maternity benefit may not be less than the average wage of an
ordinary worker as fixed by the Minister of Social Welfare. If at the
end of the eight weeks the insured woman is unable to work by reason
of sickness, she is entitled to sickness benefit in accordance with the
rules given under (i) above.
The general meeting of the fund may also decide to award an
insured woman who is a mother an extra allowance, not exceeding
one-quarter of her wages, for the eight months following her confinement, as nursing benefit.
(iii) Funeral benefit.—In case of death, funeral benefit is granted
at a rate fixed by the general meeting at between 30 and 50 times the
daily wage of the deceased.

229

LATVIA

Benefits to dependants.—The fund may also defray the cost of sickness
benefit, maternity benefit and funeral benefit for members of the
insured person's family who are dependent upon him, or other persons
assimilated to them.
The total amount of the benefits awarded to dependants, including
the cost of medical attendance, may not exceed one-quarter of the
total amount of the contributions and subsidies to the fund.
6.—Statistics.
Number of insured persons in 1933 (monthly average) : 149,754.

Income and Expenditure of Sickness Funds in 1933
INCOME

Lats
Contributions (excluding a 5 per cent, deduction for
reserve fund)
10,091,299
State subsidies
2,802,154
Interest on deposit accounts
63,889
Profits from undertakings belonging to the sickness
103,433
funds
22,304
Debts paid in arrears.
E x t r a contributions from insured persons for
528,570
medical t r e a t m e n t .
E x t r a contributions from members of insured
persons' families for medical t r e a t m e n t . . .
399,008
Fines from employers
105,743
Fines from insured persons ...
1,461
Donations
1,542
Miscellaneous receipts
37,808
Total
14,157,211
612,607
Contribution to reserve fund ...
...
Amount available for expenditure

13,544,604

EXPENDITURE

Lats
Cash benefit to insured persons
...
...
... 2,949,936
Medical treatment for insured persons
...
... 5,890,398
Medical treatment and cash benefit for members of
insured persons'families
...
... 3,336,589
Cost of administration
...
...
...
... 1,547,015
Cost of educational work and joint organisations...
75,687
Expenditure on real property
...
...
...
35,868
Losses on contributions
...
...
...
...
114,790
Miscellaneous expenditure ...
...
...
...
25,699
Total
13,975,982

The deficit of 431,378 lats was met out of the reserve fund.

230

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
THIRD 'PART

SOCIAL ASSISTANCE
I.—Medical Assistance for the Rural Population
1.—Legal Basis.
Médical assistance for- the population "of rural areas is governed by
an Act of 5' June 1928, amended by Acts of 11 February 1931, 28 Aprü
and 10 October 1933.
2.—Scope.
:
The Act applies to all persons who have resided outside the
administrative areas of the towns for not ' less than four months
during the year preceding sickness, or who are employed for wages.
I t also covers women in the case of confinement and new-born infants
irrespective of the period of residence.
3.—Administration.
Decisions as to thè right to medical assistance and the grant of
benefits are taken by the communal and district authorities, who
engage doctors, assistant' doctors and midwives for the purpose of
assistance and maintain curative establishments, either independently
or jointly.
4.—Financial Resources.
The financial resources of the scheme are borne by the sick persons,
the local authorities and the State (Ministry of Social Welfare).
The sick persons make the following payments direct to doctors,
hospitals and pharmacies, in accordance with a scale drawn up by the
Ministry of Social Welfare :
(a) the cost of treatment as an out-patient or at home, according
to the fees prescribed by the Ministry of Social Welfare ;
(6) half the cost of medicaments, dressings and other medical
supplies ;
(c) one-third of the cost of treatment in a hospital or sanatorium.
No contibutions are payable by persons entitled to medical assistance
at the expense of the Ministry of Social Welfare.
The commune defrays half the cost of hospital treatment, after
deducting the share payable by the patient, and one-third of the
amount due on account of indigent persons who are exempted from
contributing towards the cost of medical assistance.
The State defrays half the cost of hospital treatment, after deducting
the share paid by the patient ; two-thirds of the amount due on account
of indigent persons exempted from contributing towards the cost of
medical assistance ; and the cost of medicaments, dressings and other
medical supplies when treatment is given elsewhere than in a hospital,
after deducting the share payable by the patient.
Landowners whose property-is-assessed at a value of over 5,000
lats for the purpose of the agricultural land tax are not entitled to the
State and communal contributions towards the cost of medicaments,
dressings and other medical supplies and hospital or sanatorium
treatment.

231

LATVIA

5.—Benefits.
Assistance is provided in case of sickness. The Act does not,
however, apply to cases of sickness on account of which the patient is
entitled to medical attendance under another Act, except in the case
of State employees, disabled ex-service men, and persons insured under
the Workmen's Compensation Act for whom medical attendance is
provided at the expense of the Ministry of Social Welfare.
Medical assistance is provided in the form of first aid in case of
sudden illness, medical treatment as an out-patient, attendance during
confinement, home treatment, and treatment in hospital with full
maintenance or in a sanatorium. I t includes the supply of medicaments,
dressings and other necessary medical supplies.
These benefits are granted from the beginning of sickness and for
as long as they may be necessary.
6.—Statistics.
Number of persons covered by the Act in 1933 : approx. 1,200,000.
Number of persons in rural areas having received medical assistance :
304,155.

Treasury Expenditure for 1933-1934
lata
Remuneration of medical staff
1,133,035
Allowances to indigent persons for out-patient
treatment
21,742
Allowances for cost of medicaments for women in
confinement ...
50,953
Hospital treatment
797,428
Out-patient treatment.
12,634
Sanatorium treatment.
167,865
Out-patient treatment in sanatoria ...
93
Treatment a t sulphur springs
10,595
Allowances for medicaments ...
683,411
Total

2,877,756

II.—Unemployment Relief
1.—Legal Basis.
Unemployment relief is regulated by the Act of 31 December 1931,
concerning the Unemployment Fund, as amended by the Order of
12 August 1932, the Act of 23 December 1932, and Ministerial
Instructions of 11 January 1933.
2.—Scope.
The Act concerning the Unemployment Fund covers employed
persons who are involuntarily unemployed.
3.—Administration.
The authorities responsible for organising relief, in" particular in
the form of public works, are the Government institutions, municipalities, agricultural organisations, etc. As a rule, public works are
organised under State supervision, most of the schemes being in the
hands of the Ministry of Communications.

232

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The Unemployment F u n d is financed from the following sources :
(a) Contributions from workers, a t the r a t e of 1 per cent, of wages
for those n o t exceeding 200 lats a m o n t h and 2 per cent, for those
exceeding 200 lats a month. Members of the managing staff of limited
companies and representatives of such companies are assimilated to
workers if they are members of a sickness fund. The following
categories are exempt from paying contributions : workers who are
n o t liable for sickness insurance, Workers temporarily employed in
permanent positions on less t h a n six days in t h e week and. earning
not more t h a n 12 lats a week, a n d workers employed on public works
a t a fixed monthly wage ;
(6) Contributions from employers, equal to the workers' contributions. Employers of workers who are exempt from paying contributions
are not required t o contribute t o the Unemployment Fund, n o r are
institutions and undertakings in which the employer is the State ;
(c) Contributions from persons carrying on a liberal profession, a t
the rate of 1 per cent, of their professional income u p to 2,400 lats a
year and 2 per cent, above this sum ;
(d) Contributions from members of the managing staff of limited
companies a n d representatives of such companies who are n o t members
of a sickness fund, a t the rate of 4 per cent, of their total income ;
(e) Contributions from owners of real property, at t h e r a t e of
5 per cent, of the communal property t a x if it exceeds 40 lats a year.
The State also contributes t o the organisation of public works by
the monthly credits granted by t h e Council of Ministers.
5.—Benefits.
The Act covers t h e risk of involuntary unemployment.
The resources of the Unemployment F u n d are used to finance the
execution of public works organised for the purpose of supplying work
for the unemployed, t o provide cash relief for the unemployed, to defray
the cost of medical t r e a t m e n t for unemployed persons who are ill, to
provide food for t h e dependants of t h e unemployed, pay their rent,
etc.
6.—Statistics.
Income and Expenditure

of Unemployment

Fund for

1932-1934.

INCOME

1 April 1932—1 April 1933 : 3,990,558 lats.
1 April 1933—1 April 1934: 6,639,469 lats.
EXPENDITURE

Government institutions
Local authorities
Private organisations...
Total

1932-1933
Lats
7,180,112
1,551,000

—
8,731,112

1933-1934
Lats7,506,187
922,950
6,360

8,435,497

233

LATVIA

FOURTH PART
HOLIDAYS W I T H

PAY

1.—Legal Basis.
The right to an annual holiday with pay is recognised by the Act
of 24 March 1922 concerning hours of work, as amended by the Acts
of 17 January 1928, 29 April 1930 and 18 April 1932.
2.—Scope.
Annual holidays with pay are granted to all workers and salaried
employees, including foremen and supervisory staff and persons in
positions of trust. The Act also covers railway workers, domestic
servants within the administrative areas of towns, and persons employed
in hospitals, homes, children's homes, and in connection with the
sulphur springs.
3.—Length of Holidays.
All persons covered by the Act are entitled, after at least six
months' service in an undertaking or establishment, to not less than
two weeks' holiday each year, during which they receive full pay. In the
case of workers whose wages are permanently or temporarily calculated
according to the work done, the wages payable during the hohday
are determined on the basis of the average earnings for the past two
months.
If after six months' service in any undertaking or establishment
a worker resigns his post or is dismissed, he is entitled to compensation
in proportion to his length of service and his wages in lieu of the
holiday which he did not take. The compensation due to workers
dismissed by the employer after three months' service in the undertaking or establishment is calculated and paid in the same manner.

LUXEMBURG
SUMMARY
.

PAGE

F I R S T PABT :

Statistics of Population

SECOND PABT :

Social Insurance

...

236
236

I.—Workmen's Compensation

...

236

...

243

III.—Invalidity, Old-Age and Widows' and
Survivors' Insurance for Workers
...

248

IV.—Private
Fund

254

II.-—Sickness Insurance...

Salaried

...

Employees'

V.—Voluntary Social Insurance

Pensions
...

257

VI.—Subsidised Benefit Schemes for Staffs of
Certain State, Municipal or Other Public
Utility Undertakings
...
...
...

...

259

THIRD P A R T : Social Assistance

264

I.—Unemployment Belief

...

II.—Assistance for the Aged, Infirm, and Blind

264
266

III.—Medical Assistance ...

...

267

rV.—Maternity Assistance

...

269

V.—Assistance for Children and Young Persons

269

VI.—Assistance for Large Families
FOURTH P A R T :

Housing

...

F I F T H PART :

Family Allowances

SIXTH P A R T :

Holidays with Pay

...

.:.

...

J279

...

...•

271

•

...

-274

•

276

236

INTERNATIONAL SDEVEY OF SOCIAL SERVICES, 1 9 3 3

FIRST

STATISTICS OF

PART

POPULATION

Kesident population on 31 December 1930

299,782

CLASSIFICATION OF OCCUPIED POPULATION BY OCCUPATIONAL GROUPS

(approximate figures)
1. Agriculture, viticulture and forestry :
Independent workers
...
...
Auxiliary workers

...14,000
...36,000
50,000

2. Persons employed in industry, handicrafts, commerce and transport :*
Workers
Salaried employees
...
...
Eailwaymen
3. Handicraftsmen working on own account

SECOND

SOCIAL

...

51,000
13,000
6,600
6,850

PART

INSURANCE

I.—Workmen's Compensation
1.—Legal Basis.
Earlier Acts were codified by the Act of 17 December 1925 concerning the Social Insurance Code and amended by the Acts of 21
July 1927 and 6 September 1933.
2.—Scope.
(a) Undertakings covered.
Compulsory insurance applies to all industrial, agricultural, forestry
and handicraft undertakings, irrespective of the number of persons
employed.
Industrial undertakings or trades in which accident risks are
negligible may be and are partly exempted from compulsory insurance.
Exempted and commercial undertakings may insure voluntarily.
Including 17,500 workers in the iron and steel industry.

LUXEMBURG

237

(b) Persons covered.
Compulsory insurance applies to workers, assistants, journeymen,
apprentices and servants engaged in an insured undertaking, with or
without salary, and to works officials, technical salaried employees and
foremen whose remuneration does not exceed an amount to be fixed
in public regulations (10,000 francs). Officials employed in State or
communal undertakings who are entitled to a retiring pension are
exempted from compulsory insurance.
The scheme also applies to heads of agricultural and- forestry
undertakings and to members of their families working in the undertaking. I t does not, however, apply to heads of undertakings whose
yearly earnings are in excess of a figure to be fixed yearly (15,000 francs)
or to their wives.
Heads of other insured undertakings may insure voluntarily on
certain conditions. Heads of undertakings may also insure works
officials and technical employees, etc., for whom insurance is not
compulsory, other persons exposed to risk, and their own wife and
members of their family provided they do not regularly employ more
than two persons for whom insurance is compulsory.
3.—Administration.
The Accident Insurance Association, which forms part of the
Social Insurance Office, includes an industrial section and an agricultural
and forestry section. The heads of undertakings covered by this
scheme are members of the Association. The two sections are
separately administered by general meetings and governing bodies.
The chairman of the governing bodies is appointed by the Government.
The general meeting of the industrial section consists of all the heads
of undertakings for which insurance is compulsory. The general
meeting of the agricultural section consists of delegates elected by the
communal councils ; the governing body is composed of representatives
elected by the general meeting. Workers' delegates are attached to
the governing body and sub-committees when the amount of compensation is to be fixed or rules are to be drawn up concerning accident
prevention.
4.—Financial Resources.
The expenses of workmen's compensation for accidents are borne
by the heads of undertakings, these being classified according to risks.
The amount of the contribution is calculated with a view to covering
the expenses of the preceding financial period, finding a capital amount
equal to the present value of the pensions granted, covering losses
and forming a reserve fund. Administrative expenses are borne to
the extent of one-half by the Association and the other half by the
State.
Expenses arising out of the revalorisation of pensions are covered
to the extent of three-fifths by the State and two-fifths by the
Association.
The governing body may require insured persons to contribute to
the cost of medical treatment or pharmaceutical Supplies.

238

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

5.—Benefits.
(a) Definition of the risks covered.
Insured persons are entitled to recover the amount of purely
material damages (Sachschäden). Further, the scheme provides
compensation for :
1. The consequences of industrial accidents arising out of or in the
course of employment, including accidents occurring on the way to or
back from work.
. 2. Certain occupational diseases, to the list of which additions
may be made by a special committee.
(b) Benefits in kind.
1. Treatment.—The benefits due in the event of an industrial
accident include cost of treatment, medicines or other therapeutic
requisites, and of all appliances which may ensure the success of the
treatment or lessen the consequences of the accident, including maintenance costs and the cost of renewing such appliances.
The Association may provide hospital treatment free of charge
in lieu of the benefits mentioned above. It may also transfer its responsibility for the treatment of the injured person to the sickness
fund of which he is a member. In such cases benefits are as a rule
reimbursed at half the minimum sickness benefit.
Persons engaged in an agricultural or forestry undertaking and
affiliated to a sickness insurance fund, receive medical aid from the
fund during the first thirteen weeks. From the beginning of the
fourteenth week the cost of treatment is borne by the Accident
-Insurance Association (see under Gash benefits).
2. Placing in an institution.—The executive committee may, at
the request of a person entitled to pension, place such person in a home
for invalids or-orphans' home, or in some similar establishment.
- 3, Prevention.—Members of the Association are required to take
the necessary measures for protecting workers against accidents.
'(c) • Cash benefits.
1. In the event of incapacity for work.
Industrial section.—In the event of incapacity lasting not more
than thirteen weeks, an insured person is entitled to receive sickness
benefit from the Association as from the third day after the beginning
of the illness or from the first day of incapacity when such incapacity
'occurs subsequently. The benefit is equal to 50 per cent, of normal
earnings for the first four weeks and at least two-thirds of such earnings
•as from the beginning of the fifth week after the accident.
1
If the insured person is a member of a sickness insurance fund,
the-latter is as a rule entrusted with the payment of benefit, the
expenses being refunded by the Accident Insurance Association.
• • In the event of incapacity lasting more than thirteen weeks, a pension
is payable as from the day on which the accident occurs until incapacity
•ceases, that is :
1. In the event of total incapacity as long as such incapacity lasts,
6 6 | per cent, of yearly earnings, which may be increased to not more
than the full amount of yearly earnings if the insured person cannot
live without assistance and attendance by other persons.

LUXEMBURG

239

2. In the event of partial incapacity, as long as such incapacity
lasts, a fraction of the pension, such fraction being proportionate to
the extent of incapacity. The pension may be increased up to the
amount of the full pension if the injured person is in fact unemployed
through no fault of his own.
In the event of hospital treatment, maintenance free of charge is
substituted for cash benefit. If the insured person has a family
dependent on him, the members of such family are entitled to compensation equal to half the amount of sickness allowance. If hospital
treatment is granted after the first thirteen weeks or after the cessation
of pecuniary sick benefit,1 dependants are entitled to the same pension
as in the event of death.
A pension equal to 30 per cent, of the injured person's wages is
payable to relatives in the ascending line while he is in hospital.
The governing body may be authorised by the rules to grant special
relief to injured persons receiving hospital treatment and to their
dependants.
In the event of temporary incapacity, a lump sum, which may not
exceed three times the yearly amount of the pension to which the
injured person is entitled' at the time may be substituted for such
pension by the governing body after the beneficiary has been heard.
In the event of permanent incapacity, the governing body Tnay,
after hearing the mayor and alderman of the commune "in which the
injured person is resident, pay a lump sum equal to the capitalised
value of the pension provided the latter does not exceed 20 per cent, of
the pension payable for total incapacity. The governing body may
also, with the consent of the beneficiary, pay a lump sum in lieu of a
pension which exceeds 20 per cent, but not 40 per cent, of the total
pension.
Agricultural and forestry section.—Agricultural and forestry workers
who are not members of a sickness insurance fund are entitled : (a) to
curative treatment from the beginning of sickness and (6) to a pension
as from the beginning of the fourteenth week if incapacity for work
persists.
They do not receive any compensation in cash during the first
thirteen weeks.
If the agricultural and forestry workers are affiliated to a sickness
insurance fund, the Accident Insurance Association only has to deal
with the case as from the beginning of the fourteenth week. During
the first thirteen weeks the cost of curative treatment and pecuniary
sickness allowance is borne exclusively by the sickness insurance fund.
As from the beginning of the fourteenth week, the Accident Insurance
Association bears the cost both of curative treatment and of pension.
1
If the injured person, after returning t o work, needs hospital treatment
owing to the consequences of the accident becoming more serious before the
13 weeks have expired.

240

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

I t follows that the agricultural workers' insurance scheme differs
from the general scheme in the following respects :
(i) The sickness insurance funds have to bear the cost of the
accident during the first thirteen weeks ;
(ii) The pension due in respect of incapacity for work is only
payable as from the beginning of the fourteenth week.
2. In the event of death, pension is payable to the widow and
children or to the widower and children of an insured woman who,
owing to her husband's incapacity for work had contributed a substantial amount towards the support of the family. A pension is
payable to relatives in the ascending line and to grandchildren who
have lost both father and mother and are indigent, provided the
insured person made a substantial contribution to their support.
In the event of the victim's dying as a result of the accident,
survivors are entitled to the following benefits :
(a) Funeral benefit : one-fifteenth of the deceased's yearly earnings;
minimum 600 francs, maximum 800 francs.
(b) Pension : the aggregate amount of survivors' pensions may not
exceed 6 6 | per cent, of the deceased's annual earnings.
Widows (invalid widowers) : 20 per cent, of the deceased person's
earnings until the beneficiary dies or remarries ; if the widow remarries
she is entitled to a Jump sum equal to 60 per cent, of the deceased person's
annual earnings.
Children : 20 per cent, of the deceased person's earnings for each
child up to the age of sixteen.
Relatives in the ascending line : an aggregate amount equal to 30
per cent, of the deceased person's annual earnings until the beneficiaries
die or are no longer indigent. This pension is only granted provided
the total of the pensions payable to the widow and children falls short
of the maximum laid down.
Grandchildren who have lost both father and mother : an aggregate
amount equal to 20 per cent, of the deceased person's annual earnings
provided the total amount of the pensions mentioned above falls short
of the maximum laid down.
Pensions payable in respect of accidents which occur before
1 January 1927 were revalorised by the Act of 21 July 1927.
6.—Statistics.
A. Industrial Section
Number of insured persons in 1933
...
...
...
...
Persons in receipt of benefit in 1933 :
Number of accidents for which compensation was paid
...
Accident rate per thousand insured persons ...
...
...
Number of fatal accidents
...
...
...
...
...
Number of pensions payable in respect of permanent incapacity
and death :
1. New pensions granted in the course of 1933 :
Pensions payable to insured persons
...
...
...
Widows' pensions ...
...
...
...
...
...
Orphans' pensions ...
...
...
...
...
•••
Pensions payable to relatives in the ascending line ...
Total

35,573
10,499
295 • 14
25

340
19
25
5
389

241

LUXEMBURG

2. Total of pensions payable at 31 December 1933 :
Pensions payable to injured persons
Widows' pensions ...
Orphans' pensions ...
Pensions payable to relatives in the ascending line

3,420
611
429
225

Total

4,685

Number of temporary pensions :
1. New pensions granted in t h e course of 1933
2. Total of pensions payable a t 31 December 1933 ...
INCOME AND EXPENDITTJBE TOB

947
2,067

1933

(in francs)
INCOME

EXPENDITUBE

Employers' contributions 22,092,238
Interest, etc.
935,809
State contributions towards
administrative expenses
725,128
Other income (fines, rent,
131,136
etc.)

23,884,311

Total

Distribution

of the Total Amount

Benefits in kind :
Medical treatment...
Pharmaceutical supplies ...
Other
benefits
(special
treatment, supplies, etc.)
Cost of hospital treatment ...
Cash benefits :
Sickness allowance
Pensions and lump sums
Revalorisation of pensions ...
Travelling expenses and
material
damages
refunded
Prevention of accidents
Medical supervision ...
Administrative expenses
Payment to guarantee
fund ...
Payment to reserve fund,
depreciation account,
etc.
Total

of Pension

at 31 December

Total ...
Temporary

incapacity ...

...
...
...
line

489,744
539,809
2,216,724
12,107,046
736,664
158,627
9,082
4,565
1,925,842
2,782,090
1,583,693
23,884,311

Permanent incapacity or survivors
Pensions payable to injured persons
...
Widows' pensions ...
...
...
...
Orphans' pensions ...
...
...
...
Pensions payable to relatives in the ascending

819,161
511,264

...
...
...
...

1933

Fra.
4,688,976
919,868
996,791
459,868
7,065,503
4,450,546

i Including temporary pensions which will, in due course, be converted into life pensions or
cancelled by the payment of a lump sum.
X G 14641

242

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in francs)
LIABILITIES

ASSETS

Securities
Loan
Buildings ...
Cash at Bank
Revenue and Excise De
partaient
Cash in hand
Postal cheque account
Savings Bank deposits
Contributions due in res
pect of previous years
and 1933
Owed by the State
Sundry debtors
Variations in the value o f
securities.
Other assets

16,427,139
863,350
2,840,214
9,873,200
819,157
148,882
102,386
1,805

Owed to the Invalidity and
Old-Age Insurance Institution
6,029
Pensions payable ...
254,748
Sundry creditors ...
.. 2,014,534
Guarantee funds ...
.. 56,325,097
Reserve fund, etc.
.. 10,751,449
Depreciation
158,010
Other liabilities
.. 1,639,362

34,114,551
1,591,979
1,222,411
1,504,793
1,639,362
71,149,229

Total

.. 71,149,229

Total

B. Agricultural and Forestry Section
Persons in receipt of benefit in 1933 :
Number of accidents compensated
...
...
Number of fatal accidents
...
...
...
Number of permanent pensions payable a t the end of
Pensions payable to injured persons
...
...
Widows' pensions ...
...
...
...
...
Orphans' pensions ...
...
...
...
...
Pensions payable t o relatives in the ascending line

...
...
1933 :
...
...
...
...

... 2,185
...
14
...
...
...
...

Total

562
81
47
26
716

INCOME AND E X P E N D I T U R E FOR

1933

(In francs)
INCOME

EXPENDITURE

Employers' contributions ... 2,674,724
State subsidy :
133,524
Administrative expenses
592
Revalorisation of pensions
46,322
Damages including interest
12,063
Interest
1,443
Other income

Total

2,868,668

Benefits in kind :
Medical treatment
260,029
Pharmaceutical supplies
116,385
Other benefits (X-rays,
massage, bandages, surgical appliances, etc.)...
56,248
Hospital treatment
177,601
Cash benefits :
Pensions ...
1,274,187
Revalorisation of pensions
45,448
Lump sums in lieu of
pensions
112,953
Travelling expenses and
material damages refunded ...
44,849
Administrative expenses
381,221
Interest, reserve, etc.
385,882
Arrears
13,865
Total

2,868,668

243

LUXBMBUBG
Distribution

of the Total Amount of Permanent Pensions payable at
31 December 1933
313,479
Pensions payable to inju red persons
Widows' pensions ...
54,049
Orphans' pensions ...
41,028
Pensions payable to rela tives in the ascending line
14,148
422,704

Total
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in franca)
ASSETS

LIABILITIES

Buildings
260,478
Securities
239,394
Loans
50,000
Cash (at Bank, in hand, on
postal cheque account,
a t Revenue and Excise
Department)
382,774
Contributions
6,963,679
Owed by the State ...
155,599
Interest due
2,214
Other assets
449
Total

8,054,587

Owed to State
74,953
Owed to Invalidity and OldAge Insurance Institution 1,994,187
Owed to Accident Insurance
Institution (industry)
9,756
Reserve fund, etc. ...
... 2,791,051
Guarantee fund
... 2,845,958
Sundry creditors
...
280,141
Balance
58,541

Total

... 8,054,587

H.—Sickness Insurance
1.—Legal Basis.
Earlier Acts codified by the Act of 17 December 1925 concerning
the Social Insurance Code, book I, amended by the Acts of 31 December
1925 and 6 September 1933.
2.—Scope.
Compulsory insurance applies to all persons employed for remuneration and apprentices irrespective of whether they receive remuneration
or not. The following classes of persons are exempted from compulsory
insurance :
1. Private salaried employees earning more than 10,000 francs
per year;
2. Public officials and salaried employees with fixed salaries ;
3. Persons employed in a liberal profession ;
4. Domestic servants ;
5. Workers and servants engaged in agriculture and forestry
not including those regularly engaged in their employers'
subsidiary undertakings ;
6. Apprentices employed in their parents' undertakings ;
7. Persons whose employment is limited beforehand to a period
of less than one week ;
8. Persons who are training for their future occupations.

244

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Voluntarily insurance is open to the following, provided their
annual income does not exceed 12,500 francs : persons employed in
exempted classes other than 2, 3 and 6 ; craftsmen engaged in home
industries and heads of undertakings who do not regularly employ more
than two paid employees, and to members of the employer's family
working in his undertaking without remuneration and without a
specific contract.
3.—Administration.
District funds may be set up by governmental decision for certain
areas, the limits of which usually coincide with that of the administrative districts (cantons). Such funds cover all insured persons employed in their districts who are not members of an establishment fund.
An establishment fund may be set up when the head of the undertaking regularly employs at least 500 persons in one or more establishments. Authority to set up the fund is only granted when the benefits
payable under the rules are equivalent to those of the district fund and
provided the operation of the latter is not prejudiced thereby.
Each fund is administered by a governing body and a general
meeting. The employer or employers control one-third of the voting
and the insured persons two-thirds.
The activity of the fund is supervised by the Central Committee for
Sickness Insurance Funds. This committee consists of a chairman
appointed and paid by the Government and of representatives of the
employers and insured persons.
4.—Financial Resources.
Compulsorily insured persons pay two-thirds and their employers
one-third of the contributions. A fund which grants relief in respect
of the insured person's family may call for a supplementary contribution
from its members. Contributions may not exceed 4-5 per cent, of
normal earnings at the time when the fund is set up nor may they
subsequently be increased to more than 6-75. At the end of 1933,
most funds levied a contribution of 4-5 per cent. The State bears
half the administrative expenses of the district funds and half those
of the Central Committee.
The Central Committee may authorise the sharing of medical and
pharmaceutical expenses by insured persons or this may be done by
Ministerial Order. No Ministerial Order has in fact been issued in
this connection.
5.—Benefits.
(a) Benefits in kind.
1.—Sickness
Benefits in kind are payable in the event of sickness. They are
granted even if the illness does not involve incapacity for work.
(i) Treatment.
Statutory benefits.—The insured person is from the date of his
joining the fund entitled to medical aid which includes medical and
dental treatment, the supplies of medicines And other curative appliances

LUXEMBUEG

245

(spectacles, trusses, etc.). Medical benefit is payable from the beginning
of the illness and for 26 weeks in the absence of incapacity for work or,
in the event of incapacity, for 26 weeks as from the date at which cash
benefits begin to be payable or until the payment of such benefits
ceases if the latter are granted for more than 26 weeks as from the
beginning of the illness. When periods of sickness which only call for
medical treatment occur between two or more periods of incapacity,
the former do not enter into the calculation of the period in respect of
which cash benefit is paid, except in so far as they exceed 13 weeks.
The rules may prohibit the grant of relief in respect of an illness
from which the insured person suffered before joining the fund.
Additional benefits.—The rules may :
1. Extend the grant of benefits up to one year ;
2. Grant an allowance for more expensive therapeutic appliances ;
3. Grant relief and the necessary appliances for preventing deformities, etc., and for restoring or maintaining capacity for work after
the completion of treatment ;
4. Grant medical aid to members of the insured person's family.
At the end of 1933, all funds, with the exception of four, shared the
expenses of treatment for the injured person's family. The percentage
of insured persons in receipt of such benefit was 92-09.
(ii) Hospital treatment.
Statutory benefits.—Hospital treatment may be substituted for treatment at home. The attendance of a nurse of either sex may be
provided in cases where hospital treatment is impracticable.
Additional benefits.—The funds may, under their rules :
1. Grant assistance to convalescents, particularly in a convalescent
home, for not more than one year after the grant of sickness benefit
has ceased;
2. Share the expenses of hospital treatment for members of the
insured person's family. The percentage of insured persons who
were entitled to such benefit at the end of 1933 was 88-48.
(iii) Prevention.
The rules of the fund may provide for the organisation of a
prophylactic medical service.
2. Maternity
In the event of an insured woman's confinement, the attendance of
a midwife or, if necessary, of a medical practitioner, is provided. Such
attendance is also provided as additional benefit for the wives of the
insured persons.
Statutory benefits.—Attendance by a midwife or medical practitioner
is provided, in cases of confinement, for women who have been insured at least six months during the year preceding confinement.
The fund may, in Heu of cash benefit, provide treatment and maintenance in a maternity clinic or attendance by a nurse at home.

246

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

Additional benefits.—The rules may provide :
1. Attendance of a midwife or medical practitioner when the
insured women require such attendance during pregnancy ;
2. Attendance by a midwife or a medical practitioner or treatment
in a maternity clinic, etc., for the wives of insured persons. At the
end of 1933, 53-37 per cent, of the members were entitled to attendance
by a midwife for their wives, 79 "38 per cent, to attendance by a
medical practitioner, and 65 04 per cent, to treatment in a maternity
clinic.
(b) Cash benefits.
1. Sickness
(i) Sickness allowance.
Statutory benefits.—A sickness allowance is payable as from the
beginning of the fourth day of illness or, if incapacity for work only
occurs later, as from the date when it does occur.
The right to an allowance is only acquired after eight days' membership of the fund, except in the event of an industrial accident involving
15 days' incapacity.
The allowance, which amounts to 50 per cent, of normal earnings,
is payable during 26 weeks for each working day. In calculating this
period, an interim period which only calls for medical benefit is not
taken into account, except in so far as it exceeds 13 weeks.
Additional benefits.—The rules may :
1. Prolong the payment of benefit up to one year (this right has
only been exercised by the railway funds) ;
2. Increase the amount of the allowance up to not more than 75
per cent, of earnings (this has been done by three funds) ;
3. Provide payment of the benefits in respect of Sundays and/or
public holidays (this has been done by two district funds and all the
establishment funds) ;
4. Provide for the payment of benefits as from the first day of
incapacity in the case of accidents, cases in which there is a fatal issue
or cases of incapacity lasting some time, i.e., at least eight days (all
the funds provided for such payment and most of them as from the
first day of incapacity).
(ii) Hospital treatment.
Statutory benefits.—Hospital maintenance may be substituted for
sickness allowance. While the insured person is in hospital members
of his family dependent on him receive an allowance equal to 50 per
cent, of the sickness allowance.
Additional benefits.—The rules may :
1. Increase the amount of the allowance payable to members of
the insured person's family, while he is in hospital, up to 100 per cent.
of the sickness allowance (allowances varying from 75 per cent, to
100 per cent, are paid in respect of 28*72 per cent, of the insured
persons) ;

247

LUXEMBURG

2. Grant insured persons who are in hospital and have no family
dependent on them a cash benefit amounting to not more than 50 per
cent, of the sickness allowance (all the funds pay 25 per cent.).
3. Provide for the maintenance of convalescents, especially in
convalescent homes, for not more than a year after the grant of sickness
benefit has ceased.
2. Maternity
Statutory benefits.—An allowance equal to 50 per cent, of earnings
is payable for six weeks before and six weeks after confinement to
women who were insured for six months during the year preceding such
confinement. When treatment and maintenance in maternity climes
is substituted for maternity allowance, an allowance amounting to
50 per cent, of the confinement allowance is payable to members of
the insured woman's family dependent on her. When the insured
woman is attended by a nurse in her home, the amount of confinement
allowance may be reduced by one-third.
A nursing allowance equal to 25 per cent, of the confinement
allowance is payable for twelve weeks.
Additional benefits.—-The rules may :
1. Increase the amount of nursing allowance up to 50 per cent, of
confinement allowance.
2. Grant cash allowances to the wives of insured persons (five
funds, the aggregate membership of which covers 38 • 89 per cent, of the
insured persons, pay lump sums of 150 to 200 francs).
3.—Survivors
In the event of an insured person's death a payment is made to
cover funeral expenses, the difference being payable in order of precedence to the father, mother and brothers and sisters who lived with
the insured person. When a person dies of a disease contracted
during the period of insurance, funeral benefit is payable if incapacity
for work lasted up to the time of death.
Statutory benefits.—Funeral benefit amounts to one-fifteenth of
annual earnings with a minimum of 600 francs and a maximum of 800
francs.
Additional benefits.—Under the rules of the funds funeral benefit
amounting to two-thirds ofthat payable in respect of the insured person
may be paid for his consort and 50 per cent, for a child (most of the
funds, covering 88-03 per cent, of the insured persons, pay such
benefit).
6.—Statistics.
Number of insured persons in 1933 : 47,509
Number of Persona in Receipt of Benefit during 1933
F a t a l cases
Cases of incapacity or hospital cases
Cases of sickness without incapacity
Total cases of sickness ...
Days of incapacity
Cases of confinement benefit

...

Number
326
21,712
35,465
57,177
445,618
122

Kate pe r
100 Insured
persons
45-70
74-64
120-35
937-00

—

248

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
INCOME AND E X P E N D I T U R E T O B

1933

(in francs)
INCOME

EXPENDITUKE

Contributions from insured
persons and employers... 20,381,051
Cash a t
beginning of
financial year ...
... 1,282,811
Income from investments
1,216,873
Amounts recovered from
accident insurance institution
2,242,385
Invalidity and old-age
insurance institution
7,250
Third parties (including
fines payable under t h e
rules)
105,489
State contribution towards
administrative expenses
593,783
Special accounts (transfers) 1 17,619,199
Receipts from the liquidation of assets
2,881,809
Other income

808,176

Total

Benefits in kind :
Medical treatment
Pharmaceutical
supplies
and other curative appliances
Treatment and maintenance
inhospital
Cash benefits :
Allowances
Allowances paid on behalf
of accident
insurance
institution
Repayment of amounts
paid b y other funds,
insurance and charitable
institutions, etc.
Confinement allowances ...
Funeral benefit
Administrative expenses ...
Investments
Contributions refunded ...
Other expenditure
Special accounts :
Payments and transfers 1

41,138,826

Total

5,416,728
3,811,682
2,611,759
6,543,129
2,252,351

100,540
454,730
241,773
1,343,854
3,919,443
23,689
439,869
18,658,333
45,817,880

) This item includes payments and transfera from current accounts opened in the name of
(a) district funds at the savings bank, and (i) establishment funds with heads of undertakings.
B A L A N C E S H E E T AT 31 D E C E M B E R

1933

(in francs)
ASSETS

LIABILITIES

Cash in hand
2,344,570
Savings
bank
credits
(securities,
mortgages,
buildings
and
other
assets)
28,731,378
Sundry debtors
1,046,539
Total

32,122,487

Sundry creditors
Balances

Total

36,420
32,086,067

32,122,487

m.—Invalidity, Old-Age and Widows' and Survivors'
Insurance for Workers
1.—Legal Basis.
Earlier Acts codified by the Act of 17 December 1925 concerning
the Social Insurance Code, Book III, amended by the Acts of 20
November 1929 and 6 September 1933.

LUXEMBURG

249

2.—Scope.

Insurance is compulsory as from the age of 16 for :
1. Workers, assistants, journeymen, apprentices or servants
employed for remuneration.
2. Works officials, office and other salaried employees, foremen,
technical employees, commercial assistants and apprentices, provided
their annual earnings do not exceed 20,000 francs and provided they
are not affiliated to the Private Salaried Employees' Pension Fund.
Employment for which no remuneration is granted except free
maintenance is exempt from insurance.
The following are exempted :
(a) Domestic servants;
(b) Workers and servants engaged in agricultural or forestry
undertakings ;
(c) Officials, salaried employees and agents of the State, a commune
or a public or public utility institution entitled to pensions which are
at least equivalent to those payable under the invalidity, old-age and
survivors' insurance scheme or who are being trained for public employment.
(d) Persons employed temporarily who do not perform work for
remuneration in the course of a calendar year at other than specified
seasons or for more than 50 days.
Voluntary insurance is open to the following, provided their income
does not exceed 15,000 francs per annum and they are not over 40
years of age : heads of undertakings who do not regularly employ
more than two insured workers and craftsmen engaged in home industries; persons exempted under a, b and d above and those who are
only supported free of charge for their work. All insured persons may
continue in insurance after compulsory or voluntary insurance has
ceased.
3.—Administration.

The invalidity and old-age insurance institution which forms part
of the social insurance office is administered by a governing body
consisting of employers' and workers' delegates with a chairman
appointed by the Government, and by a committee of delegates elected
by the parties. 1
4.—Financial Resources.

The financial resources of the scheme are derived from contributions
shared equally between the insured persons and their employers and
amounting to 4 per cent, of wages.2 The State bears part of the cost
of pensions. The commune responsible for the relief of the insured
person refunds 20 per cent, of the State contribution.
Half the administrative expenses of the social insurance office are
borne by the State.
1
The chairman of the governing hody, who is an official, is also chairman
of the governing bodies of the accident insurance scheme.
2
For the year 1935-1936 the rate was fixed a t 5 per cent.

250

INTERNATIONAL, SURVEY OF SOCIAL SERVICES, 1933

The governing body of the institution may require insured persons
to share part of the expenses of medical treatment and pharmaceutical
supplies.
5.—Benefits.
(a) Definition of the risks covered.
1. Invalidity.—An invalidity pension is payable to an insured
person who, owing to sickness or infirmity, is no longer capable of
earning in any occupation suited to his strength and ability, which
can reasonably be assigned to him in view of his training and former
occupation, one-third of the sum usually earned by physically and
mentally sound persons of the same kind and with similar training in
the same district.
The pension is also payable in respect of temporary invalidity
after twenty-six weeks of incapacity and as from the beginning of the
twenty-seventh week.
An insured person who is sick may be given curative treatment in
order to forestall incapacity for work or enable him to recover any
capacity for work he may have lost."
2. Old age.—A pension is payable at the age of 65.
3. Survivors.—Benefit is payable to survivors in the event of the
death of an insured person who, at the time of his death, had completed
the qualifying period for invalidity pension or was in receipt of" such
pension.
(i) Widow (or invalid widower).—A pension is payable provided the
widow be either (a) disabled or (6) 55 years of age, or (c) has three children
under 18 years of age or (d) an invalid child to support.
The same benefits are payable to the widower of an insured woman
who, owing to her husband's incapacity for work, entirely or mainly
supported her family.
(ii) Orphans.—An orphans' pension is payable :
1. To an insured person's legitimate children who have lost their
father or to the illegitimate children of an insured woman, provided
all such children be under 16 years of age ;
2. To the orphans of an insured woman whose husband has deserted
her;
3. To grandchildren under 16 years of age dependent on an
insured person, provided they are indigent and the insured person
supported them to some considerable extent.
Treatment may be provided for a widow or widower or orphan to
prevent or cure incapacity for work.
(b) Benefits in hind and allowances payable to family.
1. Treatment.—Benefits in kind are optional. They include
curative treatment either in hospital or in a convalescent home, or
again, at the patient's home with a view to preventing or curing
incapacity for work in the case of an insured person, widow, widower
or orphan. 1 During hospital treatment, members of the sick person's
x
The insured person's claims on a sickness insurance fund are in such cases
transferred to the invalidity, old-age and survivors' insurance institution.

LUXEMBURG

251

family, dependent on him, are entitled to allowances usually equivalent
to the cash benefit payable by the sickness fund to which the sick
person belongs, less any invalidity pension or wages to which such sick
person is entitled.
The invalidity, widow or widower's pension may be withheld,
either wholly or in part, during treatment.
2. Institutional maintenance.—A person in receipt of pension may
at his request be placed in a home for invalids, an orphans' home or
some other institution. The payment of pension is then suspended.
3. Prevention of disease.—The insurance institution may appropriate
funds for the prevention of social diseases and for general preventive
measures.
(c) Cash benefits.
1. Invalidity pension.—The qualifying period is four years' work,
including 300 days' work, and eight years for foreigners. Pension
which is payable as from the first day of invalidity consists of the
following :
(i) A fraction payable by the institution (variable fraction).
Basic pension for four years' work : 25 per cent, of average annual
earnings ;
Supplement : 0-8 per cent, in respect of each year's work in excess
of four ;
(ii) Of a fraction payable by the State (fixed fraction) :
800 francs for a variable fraction not exceeding 2,000 francs.
700 „
„
„
„
of 2,001 t o 3,000 francs.
500
„
„ 3,001 to 5,000 „
250 „
„
„
„
„ 5,001 to 8,000 „

These supplements may vary from year to year with reference to
the cost-of-living index.
(iii) Supplements in respect of children :
The insurance institution pays the following supplements in respect
of each child under 16 years of age and dependent on the pensioner, or
for a disabled child :
10 per cent, of the pension for one child
18
„
„
„
„
two children
25
„
„
,,
„
three
„

and five per cent, in respect of each child in excess of three.
A further supplement of 120 francs is payable by the State in
respect of each child.
2. Old-age pensions.—The qualifying period for old-age pension is
eight years' work or 2,400 days' work. The pension is payable as from
the first day of the pensioner's sixty-sixth year.
The pension consists of the same fractions as invalidity pension,
except for the supplement which amounts to 0-6 per cent, for each
year in excess of four.

252

INTERNATIONAL STJEVEY OF SOCIAL SERVICES, 1933

3. Survivors' pensions.
(i) Widows' (or widowers') pension.—Pension is payable until the
widow or widower remarries, and consists of :
A fraction payable by the insurance institution and amounting to
50 per cent, of the invalidity pension payable to the insured person at
the time of his death or which would have been payable to him in the
event of invalidity.
A fraction payable by the State : The State pays an annual
supplement of :
500 francs for a variable pension not exceeding 1,000 francs
400 „
„
„
„
of 1,001 to 1,500 francs
300 „
„
„
„
„ 1,501 to 2,500
„
200 „
„
„
„
„ 2,501 to 4,000
„

The widow of an insured person who was in receipt of an old-age
pension at the time of his death, but whose right to invalidity pension
expired on his ceasing to be employed in an occupation covered by
compulsory insurance, is entitled to a widows' pension amounting to
50 per cent, of her husband's old-age pension, provided she fulfils one
of the conditions laid down for the payment of a widows' pension.
(ii) Orphans' pension.—The orphans' pension consists of :
A fraction payable by the insurance institution and amounting to
two-tenths of the invalidity pension ;
A fraction payable by the State and amounting to 120 francs for
each pension.
The total amount of survivors' pension should not exceed that of
the invalidity pension.
Grandchildren are only entitled to pension in so far as the amount
of the pensions payable to the insured person's orphans falls short of
the maximum figure.
(ili) Funeral benefit.—A funeral benefit amounting to one-fifteenth
of the deceased person's annual earnings is payable in addition to the
widows' and orphans' pensions if the insured person in respect of
whom contributions have been paid for four or eight years respectively
dies before drawing an invalidity or old-age pension (maximum 800
francs; minimum 600 francs).
6.—Statistics.
Number of insured persons : about 40,000
Number of persons in receipt of benefit a t 31 December 1933
Old-age pension
Invalidity pension
Survivors' pension
Number of curative treatments provided in 1933
Number of funeral benefits paid in 1933 ...

1,172
4,425
2,461
229
182

LUXEMBURG

INCOME AND E X P E N D I T U R E I N

253

1933

(in francs)
EXPENDITURE

INCOME

Insured person's contributions (1933)
7,726,607
Employers'
contributions
(1933)
7,726,607
Contributions from voluntarily insured persons
(1933)
53,834
Income from investments
3,129,683
Contributions for 1932, etc.
678,916
State contribution towards
administrative expenses
759,370
Other income
...
...
577,870
Rental value of buildings
occupied...
...
... 1,572,187
Appropriated from reserve
fund
13,669,924
Total
... 35,894,998

Benefits in kind (curative
4,924,736
treatment)
Cash benefits (pensions and
allowances)
...
... 14,908,639
l*,»uö,oo»
Administrative expenses ... 1,421,172
Contribution to guarantee
fund
14,321,319
Other expenditure
319,132

35,894,998

Total

P E N S I O N S GRANTED I N

1933

Annual value of fraction payable
Type of pension

Number

Old-age pensions ...
Invalidity pensions
Including : Permanent
Temporary
Survivors' pensions
Including : Orphans' ...
Widows'

161
657
526
131
403
188
215

By the
insurance
institution

By the State

francs
462,181
1,908,335

francs
101,536
450,433

424,119

100,381

BALANCE S H E E T AT 31 D E C E M B E R

1933

(in francs)
LIABILITIES

ASSETS

Buildings, etc.
Securities,
loans
and
fore3ts ...
Cash at bank, in hand, on
postal cheque account,
etc.
Contributions due
State bonds
Accrued interest ...
Sundry debtors (accident
insurance
institution,
etc.)
Other assets
Pensions fund
Total

...

46,446,528
67,912,434
11,361,782
18,885,418
632,905
683,351

Depreciation
Sundry creditors ...
Reserve fund
Guarantee fund
Social provident fund
Pensions fund

2,519,084
940.443
43,770,750
97,096,810
4,639,240
1,574,239

2,245,712
798,197
1,574,239
150,540,566

Total

150,540,566

254

INTERNATIONAL SURVEY OP SOCIAL SERVICES, 1 9 3 3

IV.—Private Salaried Employees' Pensions Fond
1.—Legal Basis.
Act of 29 January 1931 making provision for a private salaried
employees' pensions fund.
2.—Scope.
Insurance is compulsory for all persons who, on the basis of a
permanent appointment or regularly and not merely occasionally,
carry out on behalf of some other party, for payment in cash or otherwise, work which is at least mainly if not entirely intellectual.
The following are exempted :
1. Public and railway employees ;
2. Salaried employees who were over 55 years of age when they
first entered an occupation liable to insurance.
An insured person for whom insurance is no longer compulsory
may under certain conditions continue in insurance.
3.—Administration.
The pensions fund is administered by a governing body consisting
of a chairman appointed by the Government and of employers' and
insured persons' delegates in equal numbers. The general meeting
consists of delegates elected separately by the employers' and insured
persons' associations.
4.—Financial Resources.
The insurance contribution which is equal to 10 per cent, of annual
earnings not exceeding 40,000 francs is generally paid in equal shares
by the employer and the insured person. If the insured person's
earnings are less than 7,200 francs, he only pays 5 per cent, of his
actual earnings, while the employer pays 5 per cent, of 7,200 francs
and a further contribution in respect of the difference between the
insured person's actual earnings and 7,200 francs.
The State pays pension supplements and bears half the administrative expenses.
5.—Benefits.
(a) Definition of the risks covered.
In order to claim benefit the insured person must have completed
a qualifying period of 60 contribution months.
1. Invalidity.—(a) A pension is payable in the event of occupational
incapacity for work. Permanent incapacity is held to exist when,
owing to bodily infirmity or to impairment of physical and mental
powers, the insured person is permanently incapable of performing the
duties of his last occupation or of engaging in any other occupation
which can reasonably be assigned to him in view of his education,
practical training and previous occupation.
The same pension is payable, in respect of temporary incapacity due
to illness, after three months have elapsed and for the remaining
period of invalidity as soon as the legal or contractual obligations of
the employer have ceased.

LUXEMBURG

255

(6) The fund may provide for curative treatment with a view
to restoring a pensioner's capacity for work or to preventing any
incapacity with which an insured person is threatened.
2. Old age.—The pension is payable as from the age of 65 or, if
the insured person decides to give up work as a salaried employee, at the
age of 60.
Supplements for family responsibilities are payable in respect of
children on the same conditions as orphans' pensions.
3. Survivors' pensions or lump sum at death. Pensions.—The following pensions are payable to the survivors of an insured person who was
in receipt of a pension or had completed the qualifying period :
(a) The widow or invalid widower is entitled to a pension provided :
1. The marriage occurred at least twelve months before the
insured person's death, or
2. Death was due to an accident which occurred after marriage,
or
3. There is a child of the marriage.
The pension is not payable if the insured person was in receipt of an
old-age or invalidity pension at the time of his marriage.
(b) Orphan children of the insured person (father or mother with
invalid husband) are entitled to pension provided they are (i) under
18 years of age, or (ii) disabled, or (iii) under 23 years of age and
engaged in scientific or vocational studies.
Lump sums.—If survivors are unable to claim pension owing to the
fact that the qualifying period was not completed, a lump sum is
payable by way of compensation.
Funeral benefit.—In the absence of any heirs, a payment is made
to cover funeral expenses.
4. Termination of employment.—An insured woman who gives up
work owing to marriage or for any other reason is entitled to a partial
refund of her contributions.
(b) Benefits in kind and family relief.
Curative treatment is an additional benefit.
An insured person who is threatened with incapacity or a disabled
pensioner may be given treatment in a suitable establishment. Pension
is partly or wholly suspended during treatment.
Members of the family dependent on the sick person are entitled
to 50 per cent, of the pension he drew, or to which he would have been
entitled in the event of invalidity, so long as treatment lasts and
provided the insured person is not in receipt of salary or wages.
(c) Benefits in kind.
1. Invalidity pension.—A pension is payable as from the first day
of invalidity and so long as such invalidity lasts.
I t consists of :
1. A fraction payable by the fund :
Basic pension, 3,600 francs ;
Supplement : 14 per cent, of the total contributions paid ;
Supplement for family responsibilities : 1,200 francs per year
and per child.

256

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1933

2. A fraction payable by the State provided the pensioner's
income does not exceed 15,000 francs :
500 francs in respect of a pension not exceeding 5,000 francs ;
250 francs for a pension of 5,001 to 8,000 francs.
Maximum amount : average of the 5 highest annual salaries
earned, but not more than five-sixths of the highest annual
salary.
The pension is reduced by the amount of the beneficiary's earnings
in so far as the total of such earnings and pension exceeds the salary
he drew before his invalidity.
2. Old-age pensions.—Same fractions as in the case of invalidity
pension. The pension is payable as from the first day of the 66th or
the 61st year.
3. Survivors' pensions and other benefits payable in the event of death.
—The total amount of the pensions payable may not exceed that of
the pension the insured drew or could have claimed at the time of his
death. The pension is payable as from the day on which death occurred
or on which the allowances for which provision is made in the Act
concerning private salaried employees ceased to be payable.
Pensions
(a) A widow (invalid widower) is entitled to a pension amounting to
six-tenths of that which the insured person drew or could have claimed
at the time of his death ; in the event of remarriage the pension is
reduced by half and the fraction payable by the State is cancelled ;
(b) Orphans draw a pension up to the age of 18 or 23 respectively
or until their infirmity ceases. The amount of the pension payable
for each child is :
Two-tenths of the insured person's pension for children who have
lost their father or mother (where father invalid).
Four-tenths of the insured person's pension for orphans who have
lost both parents.
Allowances
1. If, failing the completion of the qualifying period, no survivors'
pension is payable, the lump sum paid to the widow and orphans
amounts to 50 per cent, of the insured person's average annual earnings,
but may not exceed the total amount of the contributions paid by the
insured person and his employer.
2. If the insured person completed the qualifying period but left no
dependants, the amount of funeral benefit is equal to that of the actual
expense, provided the latter does not exceed the insured person's
monthly salary.
3. Refund on termination of employment.—An insured woman who
marries or ceases to work is entitled to recover half her contributions
provided she has been insured for 60 months.

257

LUXEMBURG

6.—Statistics.
Number of insured persons at 31 December 1933 :
Men
Women

4,718
1,559
6,277

Total

Number of Persons in Receipt of Benefit at 31 December 1933
Old-age pensions
...
...
...
...
...
...
40
Invalidity pensions
...
...
...
...
...
...
27
Survivors' pensions
...
...
...
...
...
...
50
INCOME AND E X P E N D I T U E E TOB 1933

(in thousands of francs)
INCOME

EXPENDITURE

Employers' a n d employees
contributions
Income from investments ..
State contribution ...
Other income

Total

13,955
1,904
183
524

Old-age pensions
Invalidity pensions ...
Survivors' pensions ...
Other compulsory benefits ..
Curative treatment ...
Administrative expenses
Other expenditure ...
Amount placed to reserve ..

16,566

148
92
66
319
94
312
62
15,473
16,566

Total

BALANCE S H E E T AT 31 D E C E M B E R

1933

(in thousands of francs)
ASSETS

LIABILITIES

Cash in hand and at bank, etc
Securities
Mortgage loans
Buildings
Other assets ...
Total

4,846
33,478
4,762
725
3,937
47,748

Reserves for pensions payable
Reserves for rights in course
of acquisition
Other reserves
Other liabilities

2,953
43,978
770
47

Total

47,748

V.—Voluntary Social Insurance
A.—MUTUAL

A I D SOCIETIES

1.—Legal Basis.
Act of 11 July 1891 concerning the organisation of Mutual Aid
Societies, completed by the Act of 14 February 1900. Grand Ducal
Order of 22 July 1891 containing administrative regulations ; Order
of the same date concerning the organisation of a High Commission.
2.—Scope.
Any person who has reached the age of 18 may join a mutual
aid society. Sickness benefit may be granted to members of the
insured person's family.
3.—Administration.
Mutual aid societies recognised by the State are subject to State
control ; their rules must be submitted to the Government for approval
on the proposal of the High Commission for the Promotion of Mutual
Aid Societies.
X G 1464I

258

INTERNATIONAL STTBVEY OF SOCIAL SERVICES, 1933

The societies are administered by general meetings who elect the
governing bodies.
The High Commission consists of seven members appointed by
the Sovereign on the Government's proposal.
4.—Financial Resources.
The financial resources of mutual aid societies are derived from :
1. Members' contributions;
2. Honorary members' contributions ;
3. Gifts, bequests, etc.
4. State and communal subsidies.
Mutual aid societies are exempted from the payment of stamp
duty, registration fees and death duties.
5.—Benefits.
(a) Definition of the risk covered.
Mutual aid societies may grant benefits in the event of : (i) sickness
or accident; (ii) the insured person's death; (iii) unemployment;
(iv) old age ; (v) invalidity and (vi) maternity.
(b) Benefits in kind.
Mutual aid societies may provide medical attendance and medicines
for their members and their members' families.
(c) Cash benefits.
Mutual aid societies may pay :
1. Temporary allowances in respect of incapacity for work ;
2. Funeral benefit in the event of the death of an insured person
or of a member of the insured person's family ;
3. Compensation, in the event of death, to the members of the
insured person's family ;
4. Temporary or extraordinary allowances for old age or
invalidity ;
5. Unemployment allowances.
They have no power to grant life annuities.
6.—Statistics.
Number of insured persons in 1933 :
Men
Women
...
...
...
...

...

Total
Number of persons in receipt of benefit in 1933 :
Sickness benefit
...
...
...
...
Funeral and survivors'benefit
...
...
Total

13,802
5,145
18,947

...
...

687
326
1,013

259

LUXEMBURG
INCOME AND E X P E N D I T U R E

FOB

1933

(in francs)
EXPENDITURE

INCOME

Members' contributions
Entrance fees and fines
Interest on investments
State
and
communal
subsidies ...
Extraordinary receipts

Total

486,724
3,216
229,081

Medical treatment ...
Pharmaceutical supplies ...
Relief for sick persons
Funeral
and
survivors'
benefit
Relief for the aged and
infirm
Relief for
widows
and
orphans
Maternity relief
Administrative expenses ...
Other expenditure ...

71,660
300,090

1,090,771

F u n d s at 31 Decembe r 1933
B.—TRADE

Total

...

18,478
13,488
59,196
346,693
8,698
3,448
400
69,716
91,385
611,502

5,465,781 francs

U N I O N FUNDS

Independently of the provisions made in the Acts of 11 J u l y 1891
and 15 August 1915, trade unions p a y their members benefits in the
event of death or unemployment.

VI.—Subsidised Benefit Schemes for Staffs of Certain State,
Municipal or Other Public Utility Undertakings
A.—PENSIONS

PAYABLE TO POSTAL, TELEGBAPH AND TELEPHONE
EMPLOYEES

1.—Legal Basis.
Act of 25 J u l y 1922 (placing telegraph and telephone employees
on the same footing as officials). Act of 25 March 1929 (officials'
pensions).
2.—Scope.
The salaried employees, postmen, etc., of the postal and telegraph
administration receive pensions from the State. Workers employed
by the telegraph and telephone administration are placed on the same
footing as public officials and exempted from invalidity a n d old-age
insurance.
3.—Administration.
A pension is granted automatically or a t the request of the person
concerned by t h e member of the Government responsible for the
administration in which t h a t person is, or was, employed. The
Council of State must be consulted a n d appoints a committee of three
members to deal with each case.
Cases of injury, accident or infirmity are submitted to the pensions
committee which decides b y a majority of votes whether a pension
should be paid. The committee consists of two members of the
judiciary and one member of the administration appointed b y a Grand
Ducal Order for a period of one year. The committee is attended by
two medical practitioners.
B, 2

260

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4. —Finance.
Pensions are paid by the State.
5.—Benefits.
(a) Definition of the risks covered.
1. Old Age.—Pension is payable :
(i) At the age of 60 after 30 years' service ;
(ii) At the age of 68 after 20 years' service.
2. Invalidity.—A pension is payable to an employee who is unable
to discharge his duties :
(i) Owing to an infirmity, after 10 years' service ;
(ii) Owing to injuries or accidents arising out of or in the course
of employment, or again, due to an act of self-sacrifice performed in
the public interest or involving danger to the employee's life with a
view to life saving, irrespective of length of service.
A provisional allowance is granted in the case mentioned under (i)
above after five years' service for two years.
3. Termination of employment.—A provisional allowance is granted
for two years in the event of a post being suppressed; after such
provisional allowance has ceased to be payable; the employee is entitled
to a pension if he has completed 10 years' service.
4. Survivors' pensions.
Widows : A pension is payable to :
(a) The widow of a pensioner :
1. If the marriage took place one year before the pensioner retired,
or
2. If the married couple had a child ;
3. If the husband was retired owing to an accident defined under
2 (ii) above ;
(6) The widow of an employee who died after five years' service :
1. If the marriage took place one year before death occurred, or
2. If there is a child of the marriage.
(c) The widow of an employee who lost his life owing to an accident
defined under 2 (ii) above, provided the marriage took place before the
accident ;
(d) A divorced woman if the husband dies first, and if there was
misconduct on the part of the latter alone.
Orphans : Pensions are payable to the legitimate children, under
18 years of age :
(a) Of a pensioner if the child was born of a marriage which took
place before retirement ;
(6) Of an employee who died after five years' service or as the result
of an accident as described under 2 (ii) above.
An allowance, equal to the deceased person's salary or pension,
is payable for three months to the widow, children or relatives who
lived with the deceased and were supported by him.

LUXEMBURG

261

(b) Benefits in kind.
Nil.
(c) Cash benefits.
P a y m e n t of salary continues for three months after retirement.
The amount of pensions is fixed with reference t o cost of living and
varies with the cost-of-living index a t the same time as salaries.
Pensioners or persons in receipt of a provisional allowance receive
a monthly supplement in respect of each child under 18 dependent upon
them. This supplement varies with the cost-of-living index ; it
amounts to 50 francs for an index of 510 points and increases or
decreases a t the rate of 15 per cent, for each rise or fall of 50 points.
I n 1933 the supplement amounted to 960 francs.
Pension is only payable concurrently with salary, if any, u p to
the amount of the difference between such salary and the basic salary
on which pension was calculated.
1. Old-age pension.—The pension consists : (1) of a fraction equal
to l/3rd of the employee's salary a t the time when he retires ; (2) of a
supplement amounting to l/60th of the pensioner's salary for each
year of service in excess of ten ; maximum 5/6ths of salary.
An employee who is superannuated on reaching the age of 68 is
entitled to a pension amounting to : (1) 5/6ths of his last salary after
30 years' service ; (2) 5/6ths of his salary reduced by l/30th in respect
of each year by which his service falls short of 30.
The basic pension payable when the cost-of-living index is 100
points m a y not be less t h a n 1,000 francs. At the end of 1933 the index
was 686 points.
2. Provisional allowance.—A provisional allowance equal to l/5th
of the employee's salary at the date of retirement is payable for two
years and is increased b y l/60th for each year of service (minimum,
l/3rd of salary ; maximum, 5/6ths).
3. Invalidity pension.—Invalidity
pension consists of the same
fractions as old-age pension, save t h a t the special provisions concerning
superannuation do not apply.
I n the event of a serious injury or accident due to the employee's
work or to an act of self-sacrifice unconnected with his work, a bonus
of six years' service, and in certain cases, twelve years, is granted.
4. Survivors' pensions.—The
husband's pension on which the
widow's and orphans' pension is based, m a y not be less t h a n 1,000
francs (corresponding to a cost-of-living index of 100 points).
(a) The widoiv's pension is equal to 50 per cent, of the husband's
pension or of the pension he might have claimed. I t is reduced by
half if the widow remarries.
(b) Orphans :
1. If the orphans' pension is payable in addition to a widow's
pension, it amounts to :
8/40ths of the deceased's normal pension for one or two children ;
9/40ths of the pension for three children ;
10'40ths of the pension for four children or more.

262

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

2. In the absence of a widow's pension :
6/20ths of the deceased's pension for one child ;
8/20ths for two children ;
9/20ths for three children ;
10/20ths for four children or more.
If the employee dies while he is in active employment or in receipt
of pension, an amount equal to three months' salary or pension is
payable at death.
6.—Statistics.
Number of employees : In 1933, 743 ; In 1935, 778.
Number of persons in receipt of invalidity, old-age or survivors'
pension in 1935 :
1. Employees
...
...
...
...
...
2. Widows
3. Orphans who have lost both parents...
...
(No figures are available for 1933.)
B.—RAILWAYMEN'S

...
...

148
1441
None

PENSIONS

1.—Legal Basis.
Railway Staff Regulations : Act of 28 December 1920 ; Grand
Ducal Order of 26 May 1930 amended by Order of 23 December 1933.
Pensions : Grand Ducal Order of 30 July 1925, amended by Orders
of 2 March and 21 July 1926, 17 August and 23 December 1927,
1 February 1928, 4 April 1929, 27 August 1930, 16 February 1933 and
23 December 1933.
2.—Scope.
Pensions are payable to the permanent staff of the GuillaumeLuxemburg railways, managed by the Alsace-Lorraine railways, of
the Prince Henry railways and of the narrow-gauge railways.
Staff employed on normal-gauge railways and on the State narrowgauge railways are exempted from compulsory invalidity, old-age and
survivors' insurance.
3.—Administration.
The pensions are granted by each railway administration. In
the absence of agreement between the administration and the member
of the staff concerned, a special committee is, in the event of a claim
in respect of an injury, accident or infirmity, responsible for ascertaining whether pension is payable. This committee consists of three
members, two of whom are appointed by the management and one by
the central staff committee. The committee is assisted by two
medical practitioners acting in an advisory capacity.
4.—Financial Resources.
The pensions are payable by the railway administrations.
1
I n all cases where the widow has children, a single beneficiary has been
counted, the orphans' pension being included in t h a t of the widow.

LUXEMBURG

263

5.—Benefits.
The risks covered and the benefits paid are as a rule the same as
in the case of public officials (see under VI, A.—Pensions payable
to postal, telegraph and telephone staff), save in the following respects :
(a) Definition of the risks covered.
1. Old age.—Pension is payable : (a) at the age of 58 (retiring
age) to staff who have been in active employment for at least 15 years
as engine drivers or firemen ; (b) at the age of 63 (retiring age) to other
staff, after at least 10 years' service; (c) at the age of 50 (engine
drivers and firemen) and 55 (other staff) respectively after 25 years'
service ; (d) at the age of 50, or 55 respectively, if the member of the
staff has been in employment for more than 15 years but has left the
service before reaching the age mentioned.
2. Invalidity.—See under VI, A.
3. Termination of employment.—See under VI, A.
4. Survivors.—Widows : See under VI, A, excluding (d).
Orphans : Pension is payable to the orphans of : (a) pensioners ;
(b) staff in active employment ; (c) staff who have acquired a right
to deferred pensions, provided such orphans are under 18 years of age,
unmarried, and were born of a marriage which took place before the
father's employment ceased.
(b) Benefits in kind.
None.
(c) Cash benefits.
1. Old-age pension.—See under VI, A, omitting reference to the
provisions concerning superannuation.
The pension may not be less than 7,200 francs.
A bonus of five years' service is granted to staff for whom the
superannuation limit is 58 years of age and who, after 20 years' service
have reached the age of 50.
2. Invalidity pensions.—See under VI, A.
A member of the staff who meets with an accident or injury in the
course of work receives : (a) 100 per cent, of his salary if he loses his
sight or two limbs, or if he cannot do without the assistance or attendance of some other person ; (b) two-thirds of his salary if he loses one
limb or the use of one limb ; (c) a bonus of six years' service in addition
to the basic pension for less serious injuries (maximum two-thirds of
salary). If, however, the beneficiary was entitled to a higher pension
without bonus, he retains his right to such pension.
3. Survivors' pensions.—The widow's pension amounts to 50 per
cent, of her husband's pension or of such pension as he might have
claimed (minimum, 3,900 francs).
Orphans : See under VI, A.
If the father dies as a result of a serious injury or accident (see 2, 6)
during the year following the accident, the pension is fixed, irrespective
of length of service, at 5/9ths of the last salary for the widow and
orphans together and at l/3rd of such salary for the widow alone or
for one or more children alone.

264

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
Number of railwaymen in 1933 :
...
...
...
...
6,135
Number of persons in receipt of benefit during 1933 :
Staff
1,687
Survivors
...
...
...
...
...
...
...
947
Total amount of benefits granted by normal-gauge railway
companies in 1933 :
26,237,940 francs

THIRD

PART

SOCIAL ASSISTANCE
I.—Unemployment Relief
1.—Legal Basis.
Act of 6 August 1921 and Grand Ducal Order of the same date
amended by Grand Ducal Order of 5 January 1931, Grand Ducal
Order of 20 April 1933, concerning the productive organisation of
rehef work for the unemployed ; ministerial instruction of 17 March
1932 making provision for the promotion of communal emergency
funds.
2.—Scope.

The scheme applies to Luxemburg nationals or foreign workers
who, subject to other conditions, are able to work, over 16 years of
age, are in necessitous circumstances, not in receipt of sickness allowance, and domiciled in the Grand Duchy and have worked there for at
least 200 days during the twelve months immediately preceding
unemployment. During the usual period of unemployment which
occurs every year, seasonal workers are not entitled to unemployment
benefit. A woman worker whose husband is in receipt of normal
earnings may not claim rehef.
3.—Administration.

The scheme is administered by :
(a) communal administrations and joint committees appointed by
communal councils ;
(6) the labour exchange of the town of Luxemburg ;
(c) the committee appointed by the central authorities to supervise
the management of the scheme by communal administrations and,
if necessary, to reconsider the decisions given by joint committees in
all cases connected with the grant of ordinary unemployment rehef;
(d) by emergency funds which may be set up by communes to
provide rehef for unemployed persons other than those in receipt of
ordinary rehef. Such funds are administered by the poor rehef
authorities under the supervision of district commissioners. The
latter settle all appeals against the decisions of the fund.

LUXEMBUKG

265

4.—Financial Resources.
In principle, the financial resources of the scheme are derived to
the extent of one-quarter from the State and one-quarter from the
communes, while the other half is provided by the employers and
workers in an indeterminate ratio. In practice, the funds required
for the payment of ordinary unemployment relief in 1933 were entirely
provided by the State which recovered a quarter of its advances from
the communes in which the unemployed were resident. The cost of
the allowances paid by the emergency funds are borne to the extent
of 50 per cent, by the State and 50 per cent, by the communes. In
principle, the allowances paid to unemployed persons engaged in
productive relief works are advanced by the State which recovers
half the amount from the communes. The cost of such works is
borne either exclusively by the State or by the communes, by public
institutions, private organisations or persons. When the works are
organised by other bodies than the State, the Government may grant
subsidies payable out of the credits budgeted for unemployment
relief.
5.—Benefits.
(a) The risk covered is that of involuntary unemployment due to
lack of employment as a result of which the worker, who must prove
that he has made constant and determined efforts to find work, was
reduced to indigence ;
(b) the amount of relief payable is equal to half the wages previously
earned by the unemployed person up to a maximum of 12 francs per
working day. A supplement of 1-50 francs per working day is
payable in respect of an unemployed consort, each child under 16 years
of age and any other unemployed person dependent on the beneficiary
and living with him. The total amount of the main allowance and
of the supplements for family responsibilities may not exceed 18 francs
per working day. Once this total has been reached, other members
of the family who are unemployed only receive half their normal rate.
Ordinary relief is only granted for 26 weeks in each period of 12 months.
Workers who have exhausted their claim to ordinary relief, those
who have not been employed for 200 days before becoming unemployed
(qualifying period), Luxemburg nationals who have been repatriated
owing to loss of employment abroad, and small craftsmen and tradesmen who are unable to find work, may claim relief from the communal
emergency funds. Relief is granted by the latter at the same rates
as ordinary relief.
When an unemployed person is in receipt of relief or an allowance
from his employer, from the poor relief authorities or from the accident
or old-age and invalidity insurance institution, his unemployment
relief is withheld if it is equal to or less than, and proportionately
reduced if it exceeds, the amount of such other relief.
The grant of unemployment benefit may be made conditional upon
the performance of work or, if the unemployed person is under 21 years
of age, the attendance of general or vocational instruction courses.

266

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
Number of persons in receipt of relief during 1933 :
Average per week
INCOME AND E X P E N D I T U R E I N

(in francs)

INCOME

1933
EXPENDITURE

State subsidies :
(a) U n e m p l o y m e n t
fund
1,341,850-05
(6) Emergency funds
965,196-35
640,499-62
(c) Productive works
(d) Grants in favour of
unemployed persons
to social insurance
187,154-17
institutions
Communal subsidies :
(a) U n e m p l o y m e n t
447,283-35
fund
965,196-35
(6) Emergency funds
29,880-75
(c) Productive works
Total

967

4,577,060-64

Unemployment
fund
(ordinary relief)
... 1,789,133-40
Emergency funds (ordinary relief )
1,930,392-70
Productive works
... 670,380 • 37
Payments
to
social
insurance institutions
for continuous insurance account ...
...
187,154-17

Total

4,577,060-64

H.—Assistance for the Aged, Infirm, and Blind
1.—Outdoor Relief.
The outdoor rehef scheme was set up and is administered in accordance with the Regulations of 11 December 1846 concerning Poor
Rehef Boards and the Outdoor Rehef Act of 28 May 1897. Outdoor
rehef may be allowed to persons in need residing in the Grand Duchy,
without distinction of sex or nationahty ; it is distributed by the poor
rehef boards of the communes, each composed of five members. As a
rule the revenue of the boards is obtained from income on their property, gifts, collections, and subsidies from the communes and the
State. The nature and amount of rehef granted by the communal
poor relief boards to persons in need are determined in each individual
case after a member of the board designated for the purpose has made
an investigation.
No statistics are available concerning the cost to the communal
poor rehef boards of this form of rehef. The State subsidy for rehef
of the aged, infirm and blind amounted in 1933 to 1,818,902 francs.
2.—Rehef in Institutions.
Luxemburg has two main institutions for the relief of the infirm
and bhnd ; these are the Home for the Bhnd at Berburg and the Rham
Hospital.
The Home for the Blind at Berburg was set up by Act of 11 February
1900, amended by that of 7 August 1923. The Home is open to
blind persons whoUy or partiaUy dependent on public rehef, and is
administered by a supervisory board of three members. Its revenue
consists principally in subsidies from the State, which figure in the
poor rehef estimates, and from the communes. The Home provides
for the maintenance of the blind admitted to it, and if necessary for
their education and training.

267

LUXEMBURG

In 1933 there were 24 persons in the Home. The cost of maintenance, education and training amounted to 154,000 francs, and was
met by subsidies from the State and the communes (24,000 francs).
The Rham Hospital is administered according to the provisions of
the Acts of 28 May 1897 and 8 June 1901. It is open to the infirm
(adults and children), whether in need or not, on presentation of
certificates issued by the communal authorities and accompanied by
other necessary documents (in particular, medical certificates and birth
certificates). The Hospital is under the authority of the Poor Relief
Department. Its revenue is obtained from State subsidies (which
figure in the poor relief estimates), payments made by those inmates
who are wholly or partially self-supporting, income from its own
property, and gifts and legacies.
The Hospital admits aged and incurable persons as well as the
infirm, and also a certain number of orphans and neglected children.
who are maintained at the expense of the Poor Relief Department.
3.—Statistics.
Number of persons assisted during 1933 : 815 (adults, 420 a d a y ; children,
395 a day).
INCOME AND E X P E N D I T U R E FOR

1933

(in francs)
INCOME

State subsidy
Subsidies from communes ...
Contributions of inmates and
their families
Total

EXPENDITURE

7 83,000
522,000
250,520
1,555,520

Cost of maintenance of inmates
1,186,364
Cost of administration (staff
salaries)
369,156
Total

1,555,520

III.—Medical Assistance for Persons of Insufficient Means
Medical attendance for the needy, either at their homes or in
hospital, is provided by the communal poor relief boards (see II above),
the Luxemburg Anti-tuberculosis League, the Deaf and Dumb Institute, the Rham Hospital (see I I above), and the Ettelbriick Asylum.
The nature and work of these institutions, in so far as they have not
already been dealt with, are described below.
A.—LUXEMBURG ANTI-TUBEBCULOSIS LEAGUE

The League was founded under the Act of 11 March 1910, to which
additions have been made by the Decrees of 27 January 1911, 13
August 1918, 27 July 1922, and 11 July 1928.
All persons domiciled in the Grand Duchy who are affected or
threatened by tuberculosis fall within the scope of its activity.
The League is a public utility institution with legal personalityIts administrative organs are the governing body and the supervisory
board.

268

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Its revenue is obtained mainly from collections, State and communal subsidies, subscriptions from members, participation of patients
in the cost of treatment, income from its own property, gifts and
legacies. I t arranges for treatment at the homes of patients and,
wherever necessary, for maintenance and treatment in sanatoria.
Statistics
Number of persons assisted during 1933
INCOME AND E X P E N D I T U R E roit

1933

(in francs)
INCOME

EXPENDITURE

State subsidy
125,000
Subsidies from communes
and social insurance institutions
77,600
Participation of patients and
their families in cost of
treatment...
554,549
Income from property
44,566
Other income :
Gifts, legacies, etc.
290,606
Members' subscriptions ...
52,283
Miscellaneous
1,100,776
Total

2,245,380
B.—THE

Cash
benefits
(cost
of
treatment)
1,251,133
Benefits in kind
19,939
Cost
of
administration,
dispensaries and nurses'
salaries
150,135
General expenses
(secretariat), etc.
17,325
Sundry expenditure
806,848

Total

2,245,380

DEAF AND DUMB INSTITUTE

This Institute, set up and administered under the Acts of 28 January
1880 and 7 August 1923, is open to deaf and dumb persons inhabiting
the Grand Duchy who are partly or wholly dependent on public relief.
It is run by the Sisters of St. Francis of Assisi, assisted by a supervisory
board set up by the State.
Its regular revenue is derived mainly from State and communal
subsidies.
The Institute provides its inmates with the education and training
suitable for the deaf and dumb.
There were 14 inmates in 1933. For that year the costs of upkeep,
education and training amounted to 126,000 francs and were met by
subsidies from the State (116,000 francs) and the communes (10,000
francs).
C.—THE ETTELBBÜCK ASYLUM

The Ettelbriick Asylum was set up under the Act of 7 July 1880,
supplemented by the Grand Ducal Decree of 1 December 1880 and the
Act of 28 May 1897.
The Asylum receives persons of Luxemburg nationality suffering
from mental diseases who have to be put under restraint, and gives
them care and treatment in accordance with their physical and mental
condition. It is run by an administrator appointed by the State.
The regular revenue of the Ettelbriick Asylum is derived largely
from State subsidies (which figure in the poor relief estimates), payments made on behalf of inmates who are partially or wholly selfsupporting, gifts, legacies, etc.

269

LUXEMBURG

* Statistics
Number of persons assisted in 1933

...

INCOME AND E X P E N D I T U R E FOB

•••

815

1933

(in francs)
INCOME

EXPENDITURE

State subsidy
...
... 1,313,987
Subsidy from communes ... 563,137
Contributions of inmates ... 790,372
Total

Cost
of
administration
(staff)
1,207,876
Cost of maintenance of
inmates
1,459,620
Total

2,667,496

IV.—Maternity Assistance
Maternity assistance is governed by the Act of 15 April 1877 and
the Administrative Regulations of 14 September of the same year.
Lying-in women, wholly or partially dependent on relief, who inhabit
the Grand Duchy are entitled to benefit by it.
The application of the scheme is in the hands of the Maternity
Home and School, which has a governing body and a director.
The regular revenue of the institution is derived mainly from sums
which figure in the public relief and public health estimates under the
heading " Maternity Assistance ", and from payments made by partially
or wholly self-supporting patients.
Statistics
463

Number of persons admitted in 1933
INCOME AND E X P E N D I T U R E IN

1933

(in francs)
EXPENDITURE

INCOME

State subsidy
95,043
Payments made by patients
and their families ...
... 246,694
Total

342,737

Cost of administration (staff)
81,396
Cost of maintenance and
treatment of patients
... 261,341
Total

342,737

V.—Assistance for Children and Young Persons
1.—Legal Basis.
Grand Ducal Decree of 7 September 1907 concerning the protection
of infants, and those provisions of the annual Finance Acts which refer
to State child welfare subsidies.
2.—Beneficiaries.
Assistance is granted to children who, though unable to take
advantage of normal primary schooling, are found after medical
examination to be capable of acquiring some knowledge through special
educational methods.
There is also provision for holidays at the seaside for children of
school age. The school doctors indicate dehcate children who should
be given such holidays.

270

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

3.—Administration.

Assistance for young persons and children is administered by a
number of different institutions, the chief of which are the Backward
Children's Home at Betzdorf (a private institution supervised by the
State and run by the Sisters of St. Elizabeth), the Rham Hospital,
which has already been dealt with, and the seaside holiday organisation
for delicate children established by the Public Health Department.
Further, the rehgious orders participate with their own funds and on
their own lines in the work of assisting children and young persons.
4.—Financial Resources.

The institutions mentioned above have their own resources, to
which State and communal subsidies are added.
5.—Benefits.

(a) The maintenance, education and training of the children placed
in the Betzdorf and Rham institutions or assisted by the religious
orders.
(b) The maintenance and treatment of children of school age,
recognised to be delicate in the seaside preventive home.
6.—Statistics for 1933.
Number of children placed in the Betzdorf home ...
Number of delicate children sent to the seaside
preventive home
...
...
...
...
...
Total cost to the State and communes of assistance to children,
(for which see above)
State contribution to the cost of maintenance of
children a t Betzdorf
frs.
Contribution of the communes to the cost of
maintenance of children a t Betzdorf
... „
Cost to State of maintenance and treatment of
children in the seaside preventive home
... „
Total

159
200
except at Rham

305,290
173,273
319,280
797,843

VI.—Assistance for Large Families
Assistance for large families is administered by the Grand Duchess
Charlotte Foundation, which was set up under the Decree of 8 March
1924.
It may be granted to Luxemburg families with more than three
children under 14 years of age, preference being given to respectable
poor (pauvres honteux) and families in financial difficulties as a result
of the birth of a child during the year.
The Foundation is run by a committee of eight members. Its
revenue is derived from the income on its property and from gifts,
legacies, etc. No statistics are available for its activity during 1933.

LUXEMBURG

271

FOURTH PART
HOUSING
1.—Legal Basis.
The Act of 29 May 1906, amended on 14 December 1914, the Act
of 26 April 1929 and the Decrees of 9 July 1929, which established
the Housing Service. Both Acts were amended by the Act of 12 June
1933.
2.—Beneficiaries.
The following may receive the loans made by the Housing Service :
(a) Any worker, handicraftsman, small farmer, retan trader, or
salaried employee of Luxemburg nationality only (apart from reciprocity arrangements), who depends mainly on his remuneration or the
product of his labour, is not sole owner of a house, can bring proof of
solvency, and pays direct taxation on an income of not more than
30,000 francs a year (with an increase of 2,000 francs for each child
and certain advantages for large families and in the case of houses
built by societies).
(6) Any society which :
1. Holds a guarantee from the commune in which its headquarters are situated ;
2. Undertakes that at least 10 per cent, of the dwellings built
will be reserved for large families at a rental equal to 3 per
cent, of cost price ;
3. Undertakes that at least 10 per cent, of the dwellings built
will be reserved for acquisition by hire purchase.
The scheme applies to houses not exceeding 90,000 francs in value
(100,000 francs for large families), built on sites not exceeding 15,000
francs in value.
The Act also deals with the reconditioning of old houses, allotments,
etc.
3.—Authorities and Undertakings concerned in Building.
These are as follows : the State, the communes and the societies for
the construction of cheap dwellings. The Housing Service is a special
body set up under the Act of 26 April 1929 to grant loans at low rates to
the persons and societies defined by the Act of 1906 ; it is under Government control, and is administered on behalf of the State, with a State
guarantee, by the Governing Body of the Limited Company for the
Construction of Cheap Dwellings in the Grand Duchy of Luxemburg.
4.—Financing by Public Authorities.
The Act of 1906 authorises the National Savings Bank to use part
of its available deposits as loans to societies founded on the Unes laid
down by the Act, to communes and to private persons, if the sums so
lent are to be devoted to the purchase or construction of cheap dwellings
or to the paying off of mortgages on such dwellings. The loans are

272

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

to be repaid a t the rate of 5 per cent, per annum. The funds of the
Housing Service are supplied by the State, the Government being
authorised to issue bearer bonds as required u p to a maximum of 100
million francs, on conditions laid down in administrative regulations :
these bonds are repayable within not more t h a n 30 years from the date
of issue. Further, the Government may open a current account with
the Savings Bank or any other establishment.
5.—Loans.
Loans made t o private persons m a y be equal to (a) £$ of t h e
minimum value of the buildings offered as security, but not more t h a n
95,000 francs, in the case of a family with a t least three children under
18 years of age or of a person whose working capacity has been reduced
by more t h a n 50 per cent, and who has two dependent children or other
descendants; (6) ^ f of the same value, but not more than 90,000
francs, in all other cases.
The loans are on short or long term, the latter not to exceed 30
years. Loans m a y be granted to private persons only if a mortgage is
given.
The rate of interest is fixed between 2 and 4 per cent., according t o
the amount of the loan and the position of the family.
Each borrower may take out a temporary life insurance policy in
favour of the Housing Service in order t o guarantee repayment of all
or part of the debt in case of his death before such repayment is completed. If the loan exceeds half the value of t h e house, such a policy,
for a t least the sum lent in excess of half such value, must be t a k e n
out.
6.—Bonuses for the Improvement of Sanitary Conditions.
With a view to improving sanitary conditions in houses covered
by the Housing Acts, t h e State grants a bonus amounting to 20 per
cent, of the actual cost of such improvement in the case of a large
family, the maximum payment being 2,000 francs and 10 per cent.
of such costs in other cases, with a maximum of 1,000 francs.
7.—Relief of Debtors in respect of Mortgage and Privileged Loans.
With a view t o the relief of a large number of house owners who are
likely to become hopelessly indebted, and in order t o prevent t h e
selling out of real property on a large scale t h e Chamber of Deputies
passed a n Act concerning t h e relief of debtors under mortgage a n d
privileged loans.
I n virtue of this Act, any bona fide debtor who is unable to meet his
liabilities in respect of the purchase or construction of a house m a y
claim the application of a special scheme for reducing indebtedness.
Under this scheme the debtor enjoys t h e following advantages :
(a) reduction of the rate of interest if the latter is excessive ;
(b) the right to ,pay off his debt within t h e time limits a n d under
the conditions laid down in the scheme ;
(c) financial aid from the State, in the form of advances, free of
interest, for the p a y m e n t of the instalments laid down in the scheme.

273

fcUXEMBUBG

The effect of applying the scheme is that the new rates of interest
and conditions of repayment are substituted for those stipulated by
the parties in so far as there is any difference between the two sets
of conditions and rates of interest.
In order that the scheme may apply, the debtor must :
1. Be a Luxemburg national and domiciled in the Grand Duchy ;
2. Own not more than one house and have raised privileged or
mortgage loans on the security of his real property situated in the
Grand Duchy ;
3. Have not more than 25,000 francs income on the evidence of his
last income-tax return;
4. Not have raised more than 125,000 francs on the security of his
real property ;
5. Have built the house and raised the loans between 1 August 1926
and 31 December 1932 or have bought the house during that period
and raised the loan with a view to paying the purchase price ;
6. Further provide such security and effect such payment as the
debt relief committee to be set up by the Government shall think
fit.
8.—Loans for the Belief of Debtors.
The relief loans section to be attached to the Housing Service
will moreover have power to grant the debtors concerned loans up to
four-fifths of the value of the existing building including the value of
the built land mortgaged.
The object of such loans is to liquidate the credits which have
frozen as a result of the measures taken by the debt relief committee.
9.—Statistics.
(a) Number and amount of loans granted in 1933 by the Housing
Service of the savings bank :
28 for new buildings
135 for repayment of mortgage loans
...
...
16 for the improvement, including sanitary
improvements, of housing ...
...
...
179 loans for a total of

Fre.
927,000
3,116,700
194,600
4,238,300

(6) L o a n s g r a n t e d b y t h e H o u s i n g S e r v i c e s i n c e i t w a s first s e t u p :
1. Classification of Borrowers
Frs.
533 salaried employees
...
...
...
... 34,168,600
51,518,850
977 workers ..
261 farmers ...
7,374,400
7 tradesmen
457,800
1 society ...
5,000,000
1,779
-

G 14641

98,519,650
S

274

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1933
2. Capital
245
615
64
6

Payments

salaried empio yees
workers
farmers
tradesmen

930
3. Duration of Loans
Number of
loans
272
333
498
486
189
1

30 years
25 „
20
„
15 „
10
„

Fra.
... 25,596,300
... 42,535,250
... 1,631,800
265,000
70,028,350

„

1,779
4. Rate of Interest
Hate of Interest
per cent.
4
3-50
3
2-50
2

Number of
loans
135
208
205
514
717
1,779

Frs.
16,456,700
25,574,650
30,451,300
21,587,100
4,434,900
15,000
98,519,650

Frs.
10,075,900
15,720,700
12,460,700
33,455,750
26,806,600
98,519,650

The average rate of interest was 2 • 74 per cent.
The average rate of interest for loans granted to persons with large
families was 2 • 34 per cent.
5. Purpose for which Loans u¡ere raised
No. of loans
New buildings
1,070
Relief of debtors
349
Furniture and fittings
216
Improvement of sanitary conditions
120
Second mortgage loans
24
1,779

Fra.
69,481,250
19,475,100
6,185,500
2,942,000
435,800
98,519,650

FIFTH PART
FAMILY ALLOWANCES
1.—Public Administrations.

The Act of 13 December 1926 gives State officials and employees
the right to monthly allowances, which vary with the cost of living
and are at present fixed at 50 francs for each child under 18 years of
age legally dependent on them.
Further, under the arrangements made as a result of the economic
union between Belgium and the Grand Duchy of Luxemburg, the
conditions of remuneration of Luxemburg customs officials are assimilated to those of such officiais in Belgium (Decree of 22 June 1928).

275

LUXEMBURG

Customs officials with family responsibilities are therefore entitled
to the following monthly allowance : 30 francs for the first child,
50 francs for the second, 100 francs for the third, 140 francs for the
fourth, and 150 francs for each subsequent child. They also receive
250 francs at the birth of each legitimate child.
In virtue of the Grand Ducal Decree of 26 June 1929, railway
employees are entitled to family allowances under the same conditions
as State officials.
2.—Mining Undertakings.

There are no regulations concerning the payment of family
allowances in mining undertakings. Consequently some of these
undertakings pay their staff allowances for family responsibilities
and others do not. One of the biggest mining undertakings in the
country pays its staff an allowance of 70 francs a month in respect
of each of the first three children under 16 years of age and 85 francs a
month in respect of each additional child below that age limit. This
allowance, however, is rather in the nature of a bonus for regular
attendance and punctuality, since it is reduced by 20 francs per child
and day's work in the event of absence without leave and by 2-80
francs per day's leave in excess of three.
3.—Private Undertakings.

There are no legislative provisions making the payment of family
allowances compulsory for private undertakings. In practice such
allowances are exclusively paid by large and middle-sized industrial
undertakings, that is by 27 establishments supervised by factory
inspectors and by a few banks. The allowances are usually paid both
to workers and to salaried employees. In a few cases only they are
payable either to one class or the other. In addition to allowances
payable in respect of children dependent upon the workers (these are
granted by 23 establishments), family allowances take various forms,
such as house-keeping bonus (12 establishments), wedding bonus
(2 establishments), bonus for childbirth (7 establishments), first
communion bonus (2 establishments), bonus for supplies (7 establishments), and housing bonus (2 establishments).
Sometimes the allowance is the same for each child, but more
often it is progressive. In the case of workers, the amount of the
allowance in respect of each child under 16 years of age (or 18 if the
child remains at school)1 varies from 0-40 to 2-74 francs per day, or
40 to 80 francs per month.2 In the case of employees, the monthly
allowance varies from 30 to 120 francs per child, and is payable in
respect of each child under 20 years of age who is not gainfully
employed. One banking institution increases the salaries of its staff
from 100 to 200 francs per month whenever a child is born to the
employee concerned.
1
Two establishments only pay allowances in respect of children under
14 and 15 years of age respectively.
2
One industrial establishment only pays allowances to members of the staff
with five children or more. The amount of the allowance varies, with the
number of children, from 60 to 125 francs per month.

S 2

276

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The housekeeping bonus paid to a worker who lives with his wife
or children varies from 1 • 10 to 1-20 francs per day or 32 to 40 francs
per month for workers, and from 50 to 150 francs per month, according
to the establishment, for salaried employees. As stated above, further
allowances are paid by some establishments to their staff in the form of
various bonuses : marriage bonuses (in one establishment the monthly
salary of the person concerned is raised by 200 francs ; another establishment pays a lump sum of 500 francs), bonuses for childbirth (from 125
to 250 francs for workers and from 250 to 500 francs for salaried
employees), housing bonuses (170 francs per month) and first communion bonuses (80 francs). Further, special bonuses, amounting
to 125 francs for unmarried persons and 150 to 200 francs for married
persons, are paid in autumn so that staff may be able to lay in supplies
of potatoes and fuel.
4.—Statistics.
Total staff of establishments paying family allowances in 1933
.I.A«
1O 1 1
Workers
18,158
Salaried employees
Total
Number of workers in receipt of allowances in 1933
Workers
Salaried employees
Total

12,280
1,791
14,071

Total amount of allowances paid in 1933
Workers ...
Salaried employees
Total

Frs.
18,927,142
3,027,496
21,954,638

SIXTH

HOLIDAYS

PART

WITH

PAY

The following groups of persons are entitled to holidays with pay :
Private salaried employees (Act of 31 October 1919); railway
employees (service regulations approved by the Grand Ducal Order
of 26 May 1930) ; and workers in general (Act of 6 December 1926, and
Instructions of 21 May 1927).
Private salaried employees are entitled to an annual holiday of
10 days after three years' service and of 20 days after five years'
service; railway employees, to an annual holiday varying between
15 and 21 days according to seniority ; and other workers, to annual
holidays as follows : four days after one year's service, five days after
five years' service, seven days after 10 years' service, and 12 days after

277

LUXEMBURG

20 years' service. Apprentices under 18 years of age receive a week's
holiday after one year's uninterrupted service with the same employer.
All workers are entitled to their full wages or salaries for the duration
of the holiday.
In case of piece work or similar systems of payment, the rate of
payment for the holiday is calculated on the average remuneration
over the last three months.
Statistics
Investigations carried out during 1933 in respect to holidays with
pay yielded the following information :
Number of industrial or commercial establishments in
which holidays with pay are compulsory and which
supplied information 1
...
...
...
...
...

Number of persons employed
Workers
Salaried employees

...

18,463
3,808

Number of persons to whom holidays with pay were granted
Workers
17,749
Salaried employees ...
...
...
...
...
...
3,658
Total number of days' holiday with pay
Workers
Salaried employees ...
...
...
...
...
...

107,624
59,872

1
These establishments do not include mines and quarries, railways, the postal, telegraph and
telephone administration, and undertakings run by the State, communes or syndicates of communes.

MEXICO
SUMMARY
PAGE

F I R S T PAKT :

Statistics of Population

SECOND P A R T :

Social Insurance

...

280
...

Workmen's Compensation
THIRD P A R T :

Holidays with Pay

...

280

...

280

„

...

283

280

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

FIRST PART

STATISTICS OP POPULATION
CENSUS OF

1930

(Preliminary figures)
Population gainfully
Agriculture
Industry
Transport, communications ...
Commerce
Domestic service
Others»
Gainfully employed population
Unoccupied population
...

...

employed1

...

...
...

...
...
...

Total population

3,626,278
743,407
107,052
273,841
186,359
415,225
5,352,162
11,200,560
16,552,722

1
Excluding women doing housework, persons not following a productive occupation, without
occupation or occupation unknown.
* Including : Public administration, professional service, occupations not specified and
insufficiently determined.
SOURCE. Revista de Economia y Estadística, Vol. II, No. 13. May 1934.

SECOND PART

SOCIAL INSURANCE
Workmen's Compensation
1.—Legal Basis.
Social insurance is regulated by the Federal Labour Act of 18
August 1931.
2.—Scope.
The workmen's compensation legislation applies in principle to all
workers, that is to say, to all persons who perform for another a material
or intellectual service, or both, under a contract of employment.
The legislation also covers apprentices.
The staff of small-scale undertakings are covered by special
provisions to which reference will be made in (5). A small-scale
undertaking is deemed to mean an undertaking employing not more
than 10 persons if power-driven machinery is used and not more than
20 persons if power is not used.
Special provisions are also laid down for agricultural workers
employed by a share farmer or a tenant farmer. Compensation
is paid by the share farmer or tenant farmer and the agricultural
employer in shares proportionate to the shares due to them respectively
on the apportionment of the harvest in the case of a share farmer and

MEXICO

281

according to the amount of the rent in comparison with the probable
profit received by the tenant in the case of a tenant farmer.
3.—Administration.
Employers are not compelled to insure their staff.
They may discharge the liabilities imposed upon them by
insuring at their own expense the employee who is entitled to receive
compensation, provided that the amount insured for is not less than
the compensation.
The insurance contract must be concluded with a Mexican insurance
company.
4.—Financial Resources.
Insured employers are required to pay the whole of the premiums
payable to the insurance companies.
Employers who are not insured are required themselves to pay the
benefits laid down in the Act to persons injured while in their
employment and to their dependants.
5.—Benefits.
(a) Definition of risks covered.
Insurance covers any accident or disease to which workers are
exposed during or in consequence of their employment.
1. Industrial accidents.—An industrial accident is deemed to be
any injury necessitating the intervention of a medical practitioner or
surgeon, or mental or functional disturbance (whether permanent or
temporary, immediate or subsequent), or death, caused by the sudden
effect of an exterior cause which can be assessed and which was
incurred during or in consequence of the employment ; and internal
injury caused by a violent effort occurring in the same circumstances
is likewise deemed to be an industrial accident.
2. Occupational diseases.—An occupational disease is deemed to
mean a pathological condition due to a cause repeated during a long
period of time, being the inevitable consequence of the class of work
performed by the worker or the environment in which he is obliged
to work, which gives rise to an injury or functional disturbance in the
organism, whether permanent or temporary ; the origin of such
occupational disease may be due to physical, chemical or biological
factors.
The Act contains a detailed schedule of maladies deemed to be
occupational diseases.
(b) Benefits in kind.
When an industrial accident occurs, the employer is bound to supply
immediately such medicaments, curative requisites and medical attendance as may be necessary. For this purpose :
Every employer must keep in his factory or workshop the medicaments necessary for rendering first-aid ;
Every employer who employs from 100 to 300 workers must
establish a first-aid room provided with the medicaments and requisites

282

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

necessary for surgical and medical first-aid. This room must be
supplied with a competent staff under the supervision of a medical
practitioner who is also a surgeon, and if in the opinion of such
practitioner proper medical attendance cannot be given at the place of
employment, the worker who has been injured in an accident must
be removed to the nearest village, hospital or place where his treatment
can be undertaken. These steps are undertaken under the responsibility
and at the expense of the employer ;
Every employer who employs more than 300 workers must maintain
at least one sick-room or hospital, placed under the supervision of a
medical practitioner ;
In establishments situated in places where hospitals or curative
institutions exist, the employer may discharge his liability in this
connection by concluding contracts with the hospitals or curative
institutions for attendance for his workers in case of an industrial
accident or occupational disease.
(c) Cash benefits.
1. Temporary incapacity.—Temporary incapacity is deemed to
mean a loss of powers or of skill, rendering it either partially or totally
impossible for a person to perform his work during a certain period
of time.
In case of temporary incapacity, the injured person is entitled to
compensation amounting to 75 per cent, of the wages lost during his
incapacity. This payment is made from the first day of incapacity
for the maximum period of one year.
For agricultural workers compensation is fixed at 50 per cent, of
the wages lost.
2. Permanent incapacity.—Permanent total incapacity is deemed
to mean complete loss of powers or skill, rendering it impossible for
the person to perform work of any kind whatever during the remainder
of his life. Permanent partial incapacity is the reduction of the
powers of a person who has suffered the loss or paralysis of a member,
organ or function of the body.
In case of permanent total incapacity, compensation is equal to
918 days' wages.
In case of permanent partial incapacity, compensation is equal to a
percentage fixed in the schedule of degrees of disablement, reckoned in
accordance with the amount which would be payable if the incapacity
were permanent and total. The appropriate percentage is fixed between
the maximum and minimum figures laid down, taking into account
the age of the worker, the degree of incapacity and the question whether
such incapacity absolutely prevents his engaging in his occupation,
even if he is able to perform other work, or whether it has merely
reduced his capacity for engagement in the said occupation. Account
is also taken of the question whether the employer has taken steps
for the vocational retraining of the worker and has provided him
with articulated artificial limbs.
3. Death.—In the event of the worker's death, compensation is
granted to his widow and legitimate or illegitimate children under

MEXICO

283

16 years of age, and to his relatives in the ascending line, unless it can
be proved that they were not financially dependent on the deceased
worker. Compensation is divided equally among such persons.
In default of children, a widow and ascendants, the compensation is
divided among the persons who were partially or totally dependent
on the deceased worker, in the proportion in which they were dependent
on him.
Compensation is equal to 612 days' wages ; any compensation
received by the worker during his period of incapacity is not deducted.
In addition, funeral benefit equal to one month's wages is paid to
the dependants of the deceased worker.
The daily wage received by the worker at the time of the accident
is taken as the basis for calculating compensation. In the case of
wages calculated by the piece, the amount ascertained to be the daily
average during the month immediately preceding the accident is
taken as a basis. The lowest wage received by a worker in the same
industrial class is taken as a basis for assessing the compensation of
apprentices. In no case may the amount taken as a basis exceed
12 pesos a day.
In small-scale industries, the conciliation and arbitration board
which deals with the claim may fix the amount of the compensation
and the time within which it must be paid, taking into account the
injury incurred and the financial capacity of the occupier, but in no
case may such compensation be less than 20 per cent, of that mentioned
above.
No statistics are available for 1933.

T H I R D PART

HOLIDAYS W I T H PAY
1.—Regulations.
The right to annual holidays with pay is laid down in the Federal
Labour Act of 18 August 1931.
2.—Scope.
According to Section 3 of the Act, a worker is deemed to mean
any person who performs for another a material or intellectual service,
or both, under a contract of employment. At the same time, Section
210 specifically states that the provisions relating to holidays with pay
do not apply to small-scale industry.
3.—Conditions for granting Holidays.
The right to a holiday is acquired by all workers after more than
one year's service.
4.—Length of Holidays.
The length of the annual holiday must be fixed by the parties in
the contract of employment, but not in any case at less than four
working days. After two years' service, the holiday must not be less

284

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

than six working days. If the worker has been absent from work
without sufficient reason, the employer may deduct such absence from
the holiday period.
5.—Rates of Remuneration during Holidays.
Throughout the holiday period, the worker is entitled to his full
wages. Where wages are paid by the piece, payment is made on the
basis of the last preceding month.
No statistics are available for 1933.

NEW ZEALAND
SUMMARY
F I R S T PABT :

Statistics of Population

SECOND PAKT : Social Insurance

I.—Workmen's Compensation ...
II.—Government Railways Superannuation
Fund
III.—Voluntary Social Insurance
IV.—Government Railway Employees' Sick
Benefit Society
THIBD P A S T :

Social Assistance

I.—Non-Contributory Old-Age, Widows' and
Orphans', Miners' (Pneumoconiosis) and
Blind Pensions
II.—Unemployment Relief
III.—Assistance for the Aged, Blind and Infirm
A.—Benevolent
and Orphan Asylums
B.—Mental Defectives ...
IV.—Medical Assistance for Persons of In
sufficient Means ...
V.- -Maternity Assistance
VI.- -Assistance for Children and Young Persons
A.—Child Welfare
B.-—Education of Blind, Deaf, Feeble
minded or Epileptic Children.
VII.- -Allowances to Large Families
VIII.—Shipowners' Liability towards Sick or
Injured Seamen ...
IX.—Coal Miners' Relief Fund
FOTJRTH PART :

Housing

F I F T H PART :

Holidays with Pay

323

286

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

FIRST PART

STATISTICS OF POPULATION
CENSUS o r 1926.—GAINFULLY OCCUPIED ( A L L AGES) CLASSIFIED B Y INDUSTRIA]
GROUPS AND SOCIAL STATUS

Figures exclusive of Maoris (Native Aboriginals)
Employer

Agriculture, forestry,
Ashing, trapping ...
23,466
Mining, quarrying ...
187
Industries
10,874
Transport, communi1,615
cations
9,399
Commerce, finance ...
Public administration
3,384
and professional ...
Domestic and personal
2,301
service
358
Industry not stated...
Total
gainfully
' 51,584
occupied
Total unoccupied»
Total population ...

Working
on own
account

Relative
assisting

Wage
earner

Wage
earner
unemployed

Not
stated

Total

40,932
366
9,335
3,459
9,017

9,434
7
182
80
533

57,753
7,597
110,165
52,389
63,065

1,628
247
3,179
1,132
1,552

450
9
253
49
218

4,683

46,990

867

149

1,649
490

342
38

38,894
24,692

1,239
3,284

75
1,804

Sill

Industry Group

69,931

10,651

401,545

13,128

3,007

651,997
792,472
1,344,469

SOURCE : Dominion of New Zealand ; Population Census, 1926, Vol. IX., Wellington, N.Z. 1930.
i Including 4 cases where the occupational grading is not applicable.
» Including 2,147 cases where the occupational grading is not applicable
3 Including the groups " independent means " " no industry " " retired " " dependent on public or privai
support".

SECOND PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
The Workers' Compensation Act No. 39, consolidated on 31 October
1922, as amended by N o . 51 of 1926.
2.—Scope.
(a) Categories of workers covered.
The scheme covers a n y person who has entered into or works
under a contract of service or apprenticeship with an employer, whether
by way of manual labour, clerical work or otherwise, provided he receives
remuneration.
Non-manual workers earning more t h a n £400 are excluded.

NEW ZEALAND

287

(b) Employments covered.
The scheme covers employment in and for the purposes of any
trade or business carried on by the employer, and employment in any
of the occupations specified, whether carried on for the purposes of the
employer's trade or business or not. These occupations include
mining and quarrying, excavation, cutting of standing timber, erection
or demolition of any building or structure, manufacture or use of
explosives, charge or use of machinery in motion and driven by steam
or other mechanical power, driving of any vehicle drawn or propelled
by horse or mechanical power, domestic service in which the employment is for a period of not less than 3 days and occupations with risk
of falling any distance exceeding 12 feet if death or injury results
from such a fall.
3.—Administration.
Where claims are not settled by agreement proceedings may be
taken :
(a) In a magistrate's court for the recovery of compensation if the
parties so agree or where the amount does not exceed £50,
provided the injury has not caused the death of a worker; the
order of the magistrate is final and conclusive;
(6) In a Court of Arbitration in all other cases. No appeal lies
from the order of the Court.
Any money payable in respect of medical or surgical attendance
or funeral expenses may be recovered by action in the magistrate's
court at the suit of the representative or any dependant of the worker
or any person by whom the expenses have been incurred, or any
person entitled to receive payment, in case of death ; or at the suit of
the worker injured or any person by whom the expenses have been
incurred or entitled to receive payment, in case of injury.
Insurance is not compulsory.
4.—Financial Resources.
Compensation is payable by the employer who is individually liable.
5.—Benefits.
(a) Definition of risks.
The scheme covers :
(i) personal injury by accident arising out of and in the course
of the employment provided the incapacity lasts at least
3 days;
(ii) incapacity or death resulting from any industrial disease
specified in the Act or declared to be within the operation of
the Act if contracted within 12 months previous to the date
of the disablement and due to the nature of the employment.
(b) Benefits in hind.
Reasonable expenses for medical or surgical attendance, including
first-aid, not exceeding £1 are paid.

288

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1933

(c) Cash benefits.
Compensation in case of incapacity consists either in weekly
payments during incapacity or in a lump sum ; in default of agreement
between the parties the Court of Arbitration decides whether weekly
benefits or a lump sum shall be payable.
When a lump sum is awarded it shall be equal to the present value
at 5 per cent, compound interest of the aggregate of the weekly payments which in the opinion of the Court would probably be payable
during incapacity if weekly benefits were awarded.
Weekly payments shall not extend over a period of more than
6 years.
Weekly payments may be commuted by the Court for a lump sum
on application or action brought by the worker or employer.
1.—Temporary incapacity.
During total incapacity weekly payments consist in an amount of
66f per cent, of the worker's average weekly earnings at the time of
the accident, subject to a maximum payment of £4 a week.
During partial incapacity the payment is 66f per cent, of the
difference between the average weekly earnings before the accident and
the amount the worker is earning or is able to earn in some suitable
employment or business after the accident, subject to a maximum of
£4 a week.
The aggregate amount of weekly payments shall in no case exceed
£1,000.
2.—Permanent incapacity.
For certain injuries of a permanent nature such as loss of sight,
or members, or hearing, etc., compensation is assessed according to a
scale set out in the schedule to the Act. Compensation during total
incapacity due to illness is not thereby limited but taken into account
in estimating the amount payable.
3.—Death.
In case of death of the worker injured compensation is payable
as follows :
Burial expenses and cost of medical or surgical attendance not
exceeding £50;
Where the worker leaves total dependants, 208 times the worker's
average weekly earnings or £300, whichever sum is larger, but not more
than £1,000.
Where the worker leaves only partial dependants, a sum reasonable
and proportionate to the loss suffered by such dependants but not
more than under the foregoing provisions.
Any weekly payments for incapacity or a lump sum paid in lieu
thereof shall be deducted from such compensation.
When there are both total and partial dependants, the compensation
may be allotted partly to the total and partly to the partial dependants.
6.—Statistics.
Not available.

NEW

289

ZEALAND

H.—Government Railways Superannuation Fund
1.—Legal Basis.
Government Railways Act. No. 17, dated 9 September 1926, as
amended by No. 66, 1927, No. 43, 1928, No. 1 and No. 4, 1931, No. 8,
1932 (Part I), No. 30, 1932.
2.—Scope.
Persons permanently employed by the Railways Department are
compulsorily insured. General secretaries of railwaymen's and officers'
associations, or the N.Z. Railway Tradesmen's Association, who were
previously employed by the department, continue to be insured.
3.—Administration.
The Government Railways Superannuation Fund is administered
by the Government Railways Superannuation Fund Board, consisting
of the Chairman of the Government Railways Board, the SolicitorGeneral, the Public Trustee, the General Manager and five persons
elected by the contributors among their numbers.
4.—Financial Resources.
The Fund is made up of :
1. Contributions by employees; the rates of contribution vary
from 3 per cent, of the salary for contributors entering at the age of
30 and under to 10 per cent, for those entering at ages over 50, for
members affiliated prior to January 1908 ; and from 5 per cent, at the
age of 30 and under to 10 per cent, at ages over 50 for members
affiliated after that date.
In case of reduction of salaries through Statutory Legislation in
1921-1931 and 1932 members were permitted to elect to contribute
according to the old rates.
2. Government subsidies : (a) guarantee of deficiency by Government; (b) special subsidy for widows' and children's pensions out of
Working Railways Account.
5.—Benefits.
(a) Definition of risks.
1.—Old age.
Pensions are payable at the age of 60 years or after 40 years of
service.
2.—Ill-health.
The pension is also payable on retirement owing to ill-health,
where the employee is permanently unable to perform his duties by
reason of mental or bodily infirmity.
3.—Death.
Pensions are payable to the widow during widowhood and children
under 14 years of age on the death of the contributor before retiring
on a pension.
'

G 14641

290

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

If a beneficiary dies before the amount of pension received by him
is equal to his contributions, the difference is applied for the benefit
of the widow and children or his legal respresentative.
In the case of death of a contributor leaving no widow, contributions
less any sums payable or paid in respect of any children are refunded
to the representative in trust for the persons entitled under will or
intestacy.
4.—Retirement.
A contributor voluntarily retiring or dismissed is entitled to a
refund of his contributions.
(b) Benefits in kind.
None.
(c) Gash benefits.
1.—Old age.
The pension is for every year of service equal to one-sixtieth of the
annual pay at the time of retirement or the average pay during the
last three years, if the contributor changed to a higher grade in these
years, subject to a maximum of two-thirds of the salary or £300 a
year. Contributors prior to December 1909 are not subject to the
maximum allowance of £300 a year.
The contributor may also elect to receive a capital sum equal to
his contributions.
2.—Hi-health.
Same provisions as for old age.
3.—Death.
A pension of £31 per annum is paid to the widow and £26 for each
child under 14 years of age.
6.—Statistics.
Number insured at end of year 31 March 1934 : 11,865.
Number of beneficiaries on 31 March 1934 : 3,351 receiving allowances involving an annual liability of £440,371.
INCOME AND
INCOME

Contributions
Interest
Government subsidy
Miscellaneous
Deficiency ...

.
.

E X P E N DITTJUE I N 1932-1933

£
133,688
75,220
183,006
2,567
92,449

Total
486,930
Accumulated funds : £1,240,281.

ExPENDITUitE

Retiring allowances
Allowances to widows and
children ...
Refunds of contributions ...
Cost of administration
Miscellaneous

Total

£
425,193
28,980
25,132
3,069
4,556

486,930

NEW

291

ZEALAND

m.—Voluntary Social Insurance
Old-Age, Sickness, Maternity and Widows' and Orphans' Insurance
1.—Legal Basis.
The National Provident Fund Act, No. 16, dated 9 September
1926, as amended by No. 46 of 1926, No. 74 of 1927, Nos. 5 and 18 of
1931, Nos. 8, 11, 30 of 1932 and No. 33 of 1933.
2.—Scope.
The Act provides for voluntary insurance against old age, death,
prolonged sickness and for assistance in the case of maternity as well
as for compulsory insurance for the permanent staff of hospital boards.
1.—Direct contributors.
Any person may become a contributor on his own behalf, subject
to the following qualifications at the date of the first contribution :
(a) Residence in New Zealand ;
(b) Age over 16 and under 50 ;
(c) Income not exceeding £300 a year (average yearly income
during 3 years preceding the date of becoming a contributor).
2.—Employees in the service of local authorities.
A local authority may become a contributor on behalf of all or any
persons in its service, whether the person is himself qualified to become
a contributor or not.
3.—Members of approved friendly societies.
Approved friendly societies1 may insure their members on reduced
terms in respect of old age only, the State paying a special subsidy
in respect of such pensions. The member must be qualified to become
a contributor.
4.—Other employees.
An employer may become a contributor in respect of his employees
or any of them either
(a) in a similar manner to local authorities, or
(b) as a person contributing on behalf of another qualified person
individually; or
(c) under special conditions whereby the person insured may also
be over 50 years of age and in receipt of an income exceeding £300.
5.—Other persons.
Individuals or associations may become contributors in respect of
other persons qualified to become direct contributors (see also employers). Parents may, for instance, contribute in respect of an invalid
child. A person thus contributing is not himself entitled to any
1
Approved by the Board for t h e purpose of receiving maternity allowance
and insuring members for old age.

T 2

292

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

benefit other than a refund of contributions if he ceases to be a contributor.
6.—Permanent staff of hospital boards.
Hospital boards must become contributors on behalf of their
permanent staff, and may contribute on behalf of other employees.
7.—Contributors of superannuation funds.
Former contributors of the Public Service Superannuation Fund
or the Government Railways Superannuation Fund or the Teachers'
Superannuation Fund who are not in receipt of a retiring allowance
may become contributors.
3.—Administration.
A National Provident Fund is established, vested in the Public
Trustee and administered by the National Provident Fund Board
whose decision in respect of claims is final. The board consists of
the Minister of Finance, the superintendent of the fund, the financial
adviser to the Government and three other persons appointed by the
Governor-General. A secretary and other staff assist in the work.
4.—Financial Resources.
The Fund is made up of the following contributions :
(a) Contributors.
1. Direct contributors pay contributions computed on a scale
graduated according to the age at entrance and the rate of pension
proposed, the rates varying from 9d\ per week for persons joining at
the age of 16 to 9s. 4d. for those joining at the age of 49 in respect of
a weekly pension of 10s.
2. Local authorities pay contributions in respect of insured
employees out of their ordinary revenues according to tables established by an actuary and approved by the board. Part of the contributions thus paid is deducted from the wages or salary of the employees
insured on the basis of a maximum scale fixed by the Act ; the maximum
rate varies from 4 per cent, of the wages or the salary for persons whose
age does not exceed 30 years at the date of the first contribution to 9
per cent, for persons over 50 on that date.
3. Approved friendly societies insuring their members for old age
pay contributions on a reduced scale, varying from 4d. for those
entering at the age of 16 to 2s. 6á. for those entering at the age of 44
for a pension of 10s. Od. a week. Moreover, a certain amount is paid
out of the sickness fund of the society to the National Provident Fund
relieving the society to a specified extent from liability to pay sickness
benefit to a member entitled to a pension.
4. Employers contribute either in the same way as local authorities
or where contributing for employees individually, according to the same
scale as direct contributors, or, if a higher pension is proposed, at
rates specified by the board.

NEW

ZEALAND

293

5. Persons contributing for other qualified persons pay the same
contributions as direct contributors.
6. Hospital boards pay contributions as agreed upon with the
National Provident Fund Board or on the basis of agreements between
local authorities and the National Provident Fund Board.
7. Former contributors of superannuation funds pay contributions
as fixed by the board, but may be required to pay a lump sum for
retroactive insurance.
(b) State.
1. A State subsidy is granted out of moneys appropriated for this
purpose by Parliament, equal to one-fourth of the total contributions
paid into the fund,1 together with any further amount required to
meet the charges on the fund during the current year.
The State guarantees the benefits to which contributors are entitled.
2. The moneys required to pay maternity allowances to persons
insured and members of approved friendly societies are refunded out
of moneys appropriated for this purpose by Parliament.
3. Expenses incurred in the administration of the Act are defrayed
by the State.
4. A special subsidy is granted for friendly societies equal to onehalf of the total contributions paid by approved friendly societies.
5.—Benefits.
(a) Definition of risks.
1.—Old age.
(a) A pension is payable at 60 years of age for the remainder of
life to direct contributors and members of approved friendly societies
insured against old age. A married contributor may, while under
the age of 55, elect to receive in lieu of a pension a joint pension for
himself and his wife (or husband) at the age of 60 until the death of
the survivor.
In respect of other persons insured, pensions are payable at the
age proposed.
(6) Refund of contributions : contributors entitled to receive a
pension may before receiving the first payment elect to accept in lieu
of a pension a return of all contributions paid by them less any amount
of benefits received under the Act.
2.—Death.
(a) Survivors' pensions : on the death of a contributor or person
insured who has been a contributor or insured for not less than 5 years
continuously or on the death of a pensioner leaving (in both cases) a
1
Not in respect of persons insured b y an employer who have attained the age
of 50 on the date of first contribution, nor in respect of contributions to secure
an increased pension to an employee insured by his employer where the employee
has attained the age of 50, nor in respect of contributions paid for the excess
pension over 40«.

294

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

child or children under 14 years of age, an allowance is payable for
the benefit of the widow and children.1
If the allowance ceases to be payable before the aggregate payments
are equal to the contributions paid less any benefits (other than
maternity) received, the difference is refunded to the widow or, if there
is no widow, to the children.
No pension in respect of children is payable where the contributor
is a married woman until the death of the husband.
(&) Refund of contributions : where no allowance is payable to
survivors, all contributions less payments received (other than maternity) are refunded to the personal representatives in trust for the
persons entitled under will or intestacy.
3.—Protracted sickness.
Benefit is payable after 5 years of contributions to a contributor or
person insured, under 60 years of age and not in receipt of a pension
who is the parent of a child or children under the age of 14, in the case
of permanent or temporary total incapacity due to illness or injury,
provided the incapacity lasts at least 3 months. Benefit is not payable
if the illness or injury commenced or happened before the person had
been a contributor or insured for a period determined by the Board
(actually 12 months), or where and as long as the income exceeds
£4 a week.
Members of approved friendly societies insured against old age
do not receive sickness benefit.
4.—Childbirth.
(a) Contributors and persons insured : an allowance for defraying
expenses of medical aid is payable at the birth of a child or children
in New Zealand after a period of contribution of not less than 12 months,
provided the income of the parents during the preceding 12 months
did not exceed £300 for persons insured before 28 April 1931 and £270
for those having joined after that date.
(&) Members of approved friendly societies, whether insured or not,
receive maternity benefits out of moneys appropriated for this purpose
by Parliament.
5.—Withdrawal from or lapse of insurance.
Contributions are refunded after deduction of benefits if the person
ceases to be insured.
If an employee insured ceases to be in the service of a local authority
(employer, insuring on the same terms as such authority), the part of
the contributions deducted from his remuneration less benefits received is refunded to the employee, provided he does not elect to continue
to be insured on his own behalf. The local authority, etc., obtains a
refund of its contributions less the deduction from the salary of the
employee or benefits paid whichever amount is greater.
1
Children include children under 18 years of age who, by reason of bodily
or mental infirmity, are unable to maintain themselves by their own exertions.

295

NEW ZEALAND

(b) Benefits.
Pensions.—Direct contributors and insured members of approved
friendly societies : rates of pension according to rates of contribution,
10s. Od., 20s. Od., 30s. Od., or 40s. Od. a week.
Employees of local authorities and persons insured by employers
on the same terms as a local authority : pension as agreed but not
exceeding two-thirds of the annual salary or wages, or £300 a year whichever sum is less.
Persons insured by employers individually under special conditions :
pensions at the same contribution rates as for direct contributors up
to 40s. a week and with special contribution rates for pensions of 50s.,
60s., 70s. or 80s. per week.
Widow's and children's allowances.—7s. 6d. a week to a widow with a
child or children under 14 years 1 and 7s. 6d. for every such child payable
for a period not exceeding in the aggregate 14 years in respect of a
specified child.
This benefit is not payable to members of approved friendly
societies insured against old age.
Incapacity allowance.—7s. 6d. a week for each child under 14 years 1
during incapacity.
Sickness benefit is not payable to members of approved friendly
societies insured against old age.
Maternity allowance.—One payment of £4 for each birth to a person
who became a contributor, or member of an approved friendly society
after 27 April 1931 and £6 to prior contributors or members.
6.—Statistics.
Number of Contributors at End of Year 1933
Male
21,395

Female
3,554

Total
24,949

Number of Allowances at End of Year 1933
Direct contributors

Death
...
Incapacity
Old age ...
Total

Male
165
44
72

Female

281

Other contributors
Male
132
47
296

Female

Total
165
44
115

324

475

Total
Male
297
91
368

Female

9
58

Total
132
56
354

9
101

Total
297
100
469

542

756

110

866

With extension up to 18 years in special circumstances.

296

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
INCOME AND EXPENDITURE

ACCOUNT FOB THE Y E A R

£ ». d.
Amount of fund at beginning
of year
3,501,549 18 5
Contributions
220,848 12 2
Government contributionunder
Act
44,794 13 9
Interest
162,184 17 11
Refund of maternity claims by
the State
31,444 0 0
benefits refunded on exit
...
11,644 15 5
Miscellaneous receipts
...
8,481 1 3

3,980,947 18 11

Total
Statement

of Setiring

£
».
Maternity claims
,534 0
Maternity claims (approved
friendly societies)
31,444 0
Refund of contributions on
lapse, reduction and withdrawal
80,825 11
Refund of contributions in
,286 17
lieu of pensions
,643 16
Incapacity allowances
Death : refund of contribu21,293
0
tions
Death : allowances on account
980
19
of widows and children ...
11
715 4
Old-age allowances
41 213
13
Administration
18 30 1
Miscellaneous
980 15
Amount of fund at end of
year
3,756,
3,980,947 18
Total

and Other Allowances

Death
I n c a p a c i t y ...
Old Age

BALANCE

existing

at 31 December

d.
0
0
5

11
1
11

1933

Direct
contributors

Other
contributors

Annual amount
£
».

Annual amount
£
«.

3,099 0
4,467 6
38,482 8
46,048 14

11,874 0
6,378 6
43,670 15
61,923 1

8,775
1,911
5,188
15,874

Total

0
0
7
7

S H E E T A S A T 31

DECEMBER

Total

1933

ASSETS

LIABILITIES

£
». d.
Fund as per Revenue Account 1 3 757,028 7 7
Claims due and in course of
payment :
Maternity
2,757 9 1
Refunds in case of death ...
1,955 2 2
Death : allowances on account
of widows and children
481 11 5
Old-age allowances
1,787 11 9
Incapacity allowances
365 2 «
Expenses due and in course of
payment
4,904 16 2
Refunds in suspense
41,878 10 8
Suspense account
231 10 7
Contributions prepaid
10,657 9 4
Investment fluctuation reserve
8,842 1 7
Total

1933

EXPENDITURE

INCOME

3,830,889 12 10

3,679,349
In hands of Public Trustee
1,572
Post Office
9,736
Balances in transit
Contributions outstanding or
13,953
in course of transmission
Government subsidy due under 44,794
Act
2,432
Refund due in respect of
213
maternity claims
35,228
Fines due
43,562
47
Interest due ...
Interest accrued but not due
Office furniture and fittings...
... 3,830,889
Total

11
3
2
16

0 0
5 5
0 10
6 3
12 6
12 10

1
" Fund as per revenue account " shown in Balance Sheet differs from that shown in the
Income and Expenditure Account by £47 12s. 6d. the amount spent on office furniture and fittings.

IV.—Government Railway Employees' Sick Benefit Society
1.—Legal Basis.
Government Railway Act No. 43, 1928, section 5, provides for a
subsidy out of the railway's working account to any sick benefit society
established by railwayinen's societies, this subsidy not to exceed
£8,000 a year in the aggregate.

NEW

ZEALAND

297

The Government Railway Employees' Sick Benefit Society was
established on 3 February 1929. Rules of the Government Railway
Employees' Sick Benefit Society.
2.—Scope.
Membership of the society is open to all permanent employees of
the second division and to practically all casual employees of the
second division of the railway service. Membership of the society
and all rights to sick benefits cease on the termination of the contract
of employment with the department.
3.—Administration.
The society is administered by a General Committee consisting
of three representatives of the department, viz., the general manager
and two officers nominated by the general manager (at present the
chief accountant and the superintendent of staff) and the secretaries
of the Amalgamated Society of Railway Servants, the Locomotive
Engine Drivers', Firemen's and Cleaners' Association, and the Railway
Tradesmen's Association. The rules provide for the formation of local
committees, the members of which are elected by the employees, at
centres where there are fifty or more railway employees. The department nominates a representative on local committees.
The operations of the society are carried out entirely through
departmental channels. Members' contributions are deducted from
wages due and benefits are paid in the same manner as wages. No
charge is made by the department for the expenses of administration.
4.—Financial Resources.
Funds are obtained from contributions of employees and a subsidy
of the department.
An entrance fee of 2s. 6d. is payable on admission. The contribution
to the fund is fixed at the rate of 2s. 6d. per member per four-weekly
period or portion thereof. The department subsidises the fund at
the rate of 10s. in every pound subscribed by the employees, with a
maximum payment of £8,000 a year. Up to the present the stipulated
maximum has kept the subsidy well below 10s. in the pound of members'
subscriptions.
5.—Benefits.
(a) Definition of risks.
The object of the society is to provide for the payment of sick
benefits to members of the second division of the railway service who
are not normally entitled to any pay during periods of sickness or
incapacity other than incapacity in respect of which workmen's
compensation is payable.
Sickness benefit is payable to every member disabled from following
his occupation by reason of sickness not having been caused by drunkenness or disorderly conduct or by any disease immorally contracted or
by any other misconduct. Employees in receipt of workmen's compensation allowances are not entitled to sick benefit. Benefit is not

298

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

payable in respect of incapacity lasting less than three working days,
exclusive of Sunday.
(b) Benefits in kind.
None.
(c) Cash benefits.
Sick benefit is payable after a qualifying period of eight weeks,
as follows :
For any period of incapacity not exceeding
26 weeks
...
...
For any period of incapacity exceeding 26 weeks
b u t n o t exceeding 52 weeks
...
...
...

£2 5s. Od. per week
£1 2s. 6d.

„

In addition, the General Committee has discretionary power to
extend payment at the rate of £1 2s. 6d. per week for a further period
of 26 weeks, making a maximum period of 78 weeks' incapacity in
respect of which sick benefits may be paid. There is a proviso limiting
sick benefits to a maximum of two-thirds of a member's ordinary
pay when working full time.
Generally speaking, members are not required to furnish medical
certificates in respect of incapacity, but the General Committee, the
local committee, or controlling officers of the department have power
to require the production of medical certificates if they think fit.
6.—Statistics.
Membership of the Society (number of persons insured) at 31 March
1934: 10,096.
INCOME AND E X P E N D I T U R E I N

1933-1934
EXPENDITTTEE

INCOME

Contributions and entrance
fees ...
Interest on investments
Subsidy as per Sec. 5 Gov.
Railways Am. Act, 1928 ...
Total

16,144
777

Sick pay to members
Balance excess of income
over expenditure ...

19,615
5,306

8,000
24,921

Total

24,921

Accumulated fund : £26,520.

THIRD PART

SOCIAL ASSISTANCE
I.—Non-Contributory Old-Age, Widows' and Orphans', Miners'
(Pneumoconiosis) and Blind Pensions
1.—Legal Basis.
The Pensions Act No. 56, dated 9 September 1926, as amended
by No. 29, 1929, Nos. 8, 11, 15 and 45 of 1932.

NEW

ZEAIiAND

299

2.—Beneficiaries.
The scheme does not cover :
(i) Aliens;
(ii) Chinese or other Asiatics, whether British subjects by birth
or not, and whether naturalised or not;
(ni) Aboriginal Maoris receiving money other than pensions out
of the funds appropriated by the Civil List Act of 1908 for
Native purposes.
Further restrictions as to nationaUty apply in case of certain
pensions.
1. Old-age pensions.—Old-age pensions are granted to persons
who fulfil the following conditions :
(i) British subjects by birth or naturalised for at least one year
at date of establishing claim ; or Maoris other than above defined ;
(ii) Residence in New Zealand at the date of establishing claim,
and during 25 years preceding that date (certain absences being
allowed for) ;
(iii) Good moral character ; disqualification in case of disreputable
Efe, imprisonment exceeding certain limits, desertion of wife
or neglect of children ;
(iv) The claimant may not have deprived himself of property or
income in order to qualify for a pension ;
(v) Income including pension not exceeding £79 19s. ; in case of
married claimant, joint income, £121 Os.1 or property less than
£410.
2. Widows' and orphans' pensions.—The qualifying conditions
for widows are :
(i) Residence in New Zealand ;
(ii) Good moral character ;
(iii) The widow may not have deprived herself of property or
income in order to qualify for a pension;
(iv) Income not exceeding £1 14s. plus 9s. for each child per week.
The conditions for children are :
(i) Age not over 15 ;
(ii) Legitimate;
(in) Born in New Zealand or during the temporary absence of
the mother from New Zealand; in other cases parents must
have been resident in New Zealand for 3 years preceding the
father's death.
3. Miners' compensation for pneumoconiosis.—Miners suffering
from pneumoconiosis, or in case of death their widows and children,
are entitled to pensions subject to the following qualifications :
(i) British subjects by birth or naturalised for at least one year ;
1
These limits have been raised to £84 and £127 respectively by Act No. 12
of 1934.

300

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(ii) Residence in New Zealand for not less than 5 years preceding
the date of application (occasional absences of together 6 months
are not counted) ;
(iii) Employment as miner in New Zealand for 2\ years prior to
the date of application ;
(iv) Good moral character; not imprisoned for offence punishable
by imprisonment for more than 2 years; not deserted wife or
children ;
(v) Income : pensions payable in respect of children are subject
to certain reductions where the annual income other than
pensions exceeds £104 a year.
4. Pensions to blind persons.—Persons of 20 years or upwards
are entitled to pensions in respect of blindness subject to the following
qualifications :
(i) Nationality; same conditions as for old-age pensioners;
(ii) Residence in New Zealand for not less than 10 years preceding
the application (allowance is made for absences not exceeding
3 months in the aggregate or for periods of vocational training
or medical treatment of the eyes) ;
(iii) The applicant must be born blind in New Zealand or become
blind whue permanently residing in New Zealand; otherwise
the applicant must have permanently resided in New Zealand
for not less than 10 years before 29 October 1924 or 25 years
before the date of application ;
(iv) Maintenance : relatives must not be in a position to maintain
the applicant;
(v) Good moral character and no imprisonment for the last 5
years for any offence punishable by imprisonment for 2 years
or more ;
(vi) Pensions and earnings combined must not amount to £229 10s.
per annum (approximately £4 8s. 3d. a week) or, where there are
no earnings, the pension and other income combined must not
amount to £87 per annum.
Income for the purposes of old-age and widows' pensions and blind
persons' pensions does not include the pension, funeral benefit from a
friendly society, money received on sale or exchange of land or property,
money received under an insurance policy for damage by fire or otherwise to buildings or property, any capital money expended for the
benefit of the applicant, a wife or husband or dependent children and
any principal or capital sum received by the applicant on the intestacy
or under the will of the deceased husband or wife of the applicant.
Property does not include personal effects and furniture or life
insurance policies and annuities or other life interest in the capital sum
of which the applicant has no interest or the value of the home in which
he resides. From the amount thus assessed £50 may be deducted
(mortgages on the property may also be deducted). In the case of a
married applicant, his property is deemed to be half the property of
both.

NEW

ZEALAND

301

3.—Administration.
The Act is administered by the Commissioner of Pensions and the
Pensions Department. The country is divided into pensions districts,
registrars being appointed for every such district.
All claims or applications are submitted to the registrar of the
pensions district.
Old-age and widows' pensions.—Claims are transmitted to a
magistrate exercising jurisdiction in the district, who investigates the
case, establishes the claim and fixes the rate. The Commissioner
issues the pension certificate to the claimant for the first year. Applications for renewal are investigated and determined by the Commissioner.
Blind and miners' pensions.—Applications are determined by the
Commissioner of Pensions.
4.—Financial Resources.
Pensions are paid out of public funds appropriated for that purpose
by Parliament.
5.—Benefits.
(a) Definition of risks.
Old-age pensions.—Pensions are payable as follows :
(a) Where there are no children or one child only, at the age of
65 to men and at the age of 60 to Women ;
(b) Where there are 2 or more dependent children under 15
years of age, at the age of 60 for men and 55 for women.
Widows' and orphans' pensions.—Pensions are payable to widows
with one or more children under the age of 15. On the death of the
widow the guardian of her children may receive the pension on behalf
of the children.
Miners' pensions.—A pension is payable
(a) Where the miner is totally incapacitated or seriously and
permanently incapacitated for work by pneumoconiosis contracted whüe working as a miner in New Zealand ; pneumoconiosis includes tuberculosis of the lungs and other diseases
of the respiratory organs commonly associated with or a
sequel to pneumoconiosis ;
(b) In case of death of a miner thus entitled to a pension from
pneumoconiosis, to the widow.
Pensions for blindness.-—Pensions are paid in respect of total
"blindness.
(b) Benefits.
Pensions are payable as long as the income does not exceed the
limit prescribed (i) for life, to old-age pensioners, (ii) until the widow
marries and (or) the child attains the age of 15 or dies—to the widow or
the guardian of the orphan, (iii) during the incapacity to a miner and for

302

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1 9 3 3

two years to his widow, and (iv) during total blindness to the blind
person.
Where the pensioner is maintained in a charitable institution or
receives relief therefrom, the cost of maintenance and relief is paid out
of the pension.
Old-age pensions.—(a) Pension : maximum rate £40 19s. (since
1932)1 per year diminished by : £1 for every complete pound of income
in excess of £39 ;2 £1 for every complete £10 of the net capital value
of accumulated property, but not in respect of both property and income derived therefrom ; £1 for every year or part of a year by which
the age of the applicant is less than 65, where the beneficiary is a
woman under 65 years of age but not the mother of two or more
children under 15 years dependent on her.
(6) Allowance for children : where there are two or more children
under 15 an annual allowance not exceeding £13 is paid.
Where the applicant is married the pension for either husband or
wife together with the income of both and the pension of the other
(if any) shall not exceed £121. Where the pensioner is an inmate
of a mental hospital the pension is paid to the superintendent.
Widows' pensions.—The pension consists of a payment of 9s. per
week to the widow and an additional 9s. for each dependent child,
subject to a maximum of £3 12s. per week. The total income together with the pension shall not exceed £1 14s. plus 9s. for each child
or £4 17s. per week, whichever is less. The income exempted is
therefore 25s. per week or £65 per annum.
Miners' pensions.—(a) Incapacity : the pension is : £2 2s. 6d. per
week for an unmarried man and £2 2s. 6d. plus 9s. for the wife (if
any) and 9s. for each child under the age of 15 years for married men.
The annual amount of the pension payable in respect of a child
or children is reduced by £1 for every pound in excess of £104 of annual
income other than pensions.
The maximum aggregate pension payments are £3 16s. 6d. a week.
(6) Death : in case of death of the beneficiary the following benefits
are granted :
Funeral expenses not exceeding £20 ;
15s. 9d. per week to the widow for two years after the husband's
death. 3
Pensions to the blind.—(a) Basic amount : an allowance of £45 10s.
per year, reduced in the same manner as old-age pensions in respect of
income and property (income exempted £39) ;4 no account is taken,
however, of personal earnings not exceeding £2 15s. a week.
1

B y Act No. 12 of 1934 the rate was increased t o £43.
Increased to £41 in 1934.
3
Prior to 1932 pensions were granted during widowhood. Widows in receipt
of pensions a t the time when the period was reduced to two years receive on termination of the pension an allowance corresponding t o an old-age pension during
widowhood or until receipt of old-age pension.
4
No. 12, 1934: £41.
2

303

NEW ZEALAND

(6) Subsidy to earnings : in addition to the pension a beneficiary
receives a weekly allowance of 25 per cent, of his average weekly
earnings, provided his aggregate receipts from all sources including
such allowance do not exceed £3 12s. Qd.
6.—Statistics.
The number of pensions granted in 1933-1934 and the number of
pensions as at 31 March 1934 were as follows :
Class of pensions
Old-age
Widows
Miners
Blind
Total

Pensions granted in
1933-1934

If umber of pensions as at
31 March 1934

6,342

43,300

5,509
703
70
60

37,507
4,619
736
438

Old-age : Pensions 65 years and over : 29,631 : pensions (female)
60-64 years : 6,155; Maori pensions : 1,687.
Thirty male and 4 female pensioners under the age of 65 and 60
respectively receive additional pensions in respect of children under 15.
Widows : Total number of children in receipt of pensions on
31 March 1934 : 9,442.
INCOME AND E X P E N D I T U K E

The gross expenditure in 1933-1934, the annual liability at the end
of the year, and the total expenditure since the estabhshment of the
pensions scheme were as follows :
Class of pensions

Old-age
Widows
Miners
Blind

Gross
expenditure
1933-1934

Annual
liability at
31 March 1934

1,350,982
302,020
56,810
19,306

1,403,375
301,388
56,184
20,399

Grand total
expenditure
to date
£

21,857,128
4,242,957
693,631
129,639

The average pension per year and the cost per head of the European
population for the year will be seen from the following figures :
Class of pensions
Old-age
Widows
Miners
Blind

Average pension
per annum
£
». d.

37 8
65 5
76 6
46 11

4
0
9
5

Cost per head of
European population
in 1933-1934
£
i. d.

0 18
0 4
0 0
0 0

4
1
9-2
3-1

The cost of administration of the Pensions Department, which
also deals with war pensions, epidemic pensions, and family allowances
amounts to £58,336.

304

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

n.—Unemployment Belief
Assistance for the unemployed is governed by the Unemployment
Act 1930, and the Amendments of 1931 and 1932, and by the Small
Farms (Relief of Unemployment) Act 1933.
Relief is granted in the greatest measure to cases of greatest actual
individual need. From time to time the eligibility of individual
applicants for relief is reviewed in the light of possible changes in their
family responsibilities or other relevant factors likely to affect their
qualifications for relief, and special attention is paid to the efforts of
the applicant to supplement his measure of relief by every means in
his power, such as the cultivation of a vegetable garden, etc. As far
as possible only unemployed contributors to the Unemployment Fund
who have registered at the Government Labour Bureaux and are
willing and able to accept the work offered are employed on relief
works.
The provision of employment for women is outside the scope of
the Unemployment Board's relief schemes, and a special committee
was set up by the Board in 1931 to co-operate with voluntary organisations for the relief of unemployment among women, for which
purpose grants have been made from the Fund.
The Unemployment Fund was set up under the provisions of
the Unemployment Act and is administered by an Unemployment
Board. This Board is composed of five members consisting of the
Minister of Employment, the Commissioner of Unemployment, and
three members appointed by the Governor-General. The functions
of the Board, in addition to the administration of the Fund, are to
initiate and develop schemes to provide employment and relief for
the unemployed.
The Small Farms (Relief of Unemployment) Act, which was passed
in May 1933 to facilitate the rapid settlement of unemployed workers
on the land, is administered by a Small Farms Board.
The Unemployment Fund derives its resources from (i) a levy of
20s. per annum payable by all males of 20 years or over, with certain
exceptions ; and (ii) an emergency unemployment charge at the rate
of Is. in the £ on all wages and salaries, on all other income received
by men, and on income other than wages and salaries in excess of £20
per annum received by women.
The cost of operations under the Small Farms (Relief of Unemployment) Act is borne by the Unemployment Fund.
The main form of relief is by partial employment on relief works
such as road-making and repairing and land reclamation. For the
greater part of 1933 rates of pay in the principal towns varied between
15s. a week for single men and 40s. a week for married men with three
or more dependants ; single men received 7s. 6d. for each day's Work done,
and married men 10s. Towards the end of the year these rates were
reduced by 10 per cent. In the smaller centres of population, where
the cost of living is assumed to be lower, the rates are also lower, the
number of days' work provided being smaller in proportion. Account
is taken in rationing the work available of variations in individual

NEW

305

ZEALAND

need. The Unemployment Fund bears the cost of wages, and local
authorities provide tools and supervision.
Employment is also provided under various building, farming,
gold prospecting, land improvement and development, camp and other
schemes financed wholly or in part by the Unemployment Fund.
The Act of 1930 authorises the payment of sustenance allowances
out of the Unemployment Fund, but this authority has been utilised
only to a very limited extent. In certain cases sustenance allowances
up to 50 per cent, of the scale of relief pay are made, but only where
it has been found impossible to provide suitable relief employment.
The 1932 Amendment authorises the Unemployment Board to
expend moneys in the purchase of food, clothing and other necessities,
and since the passing of this Amendment ration cards have been issued
in necessitous cases as a supplement to payment for relief work.
The total number of males who were wholly or partly a charge on
the Unemployment Fund on 31 December 1933, was 67,740 ; of this
number 42,174 were employed under the relief Works scheme, 8,263 on
farm schemes, 3,760 on gold prospecting schemes, 7,428 under the
building subsidy scheme, 3,098 on land improvement and development,
2,870 on subsidised employment (land development and roads) by
the Public Works Department, and 147 on subsidised employment in
various industries.
Unemployment Fund
INCOME AND E X P E N D I T U R E FOR T H E Y E A R E N D E D 31 MARCH
EXPENDITURE
INCOME
£

Cash in hand on 1 April 1933 424,426
Levy
428,550
Wages tax
2,891,715
Tax on income other t h a n
salary or wages ...
... 1,106,602
Miscellaneous
...
...
13,465
Total

4,864,758

1934
£

Grants, loans and sustenance
payments
4,026,408
Purchase of food, clothing,
etc., under 1932 amendment
104,278
Administration expenses ...
112,555
Cash in fund at end of year
621,517
Total

4,864,758

in.—Assistance for the Aged, Blind and Infirm
A.—BENEVOLENT

AND ORPHAN ASYLUMS

1.—Legal Basis.
See Hospital Boards under IV, page 308.
2.—Beneficiaries.
Assistance in benevolent and charitable institutions is afforded to
persons of insufficient means or who are indigent.
3.—Administration.
Benevolent and orphan asylums are conducted by Hospital Boards,
religious bodies and other institutions.
4.—Financial Resources.
Free accommodation is granted on a benevolent or charitable basis.
For financial resources of Hospital Boards see under IV : Hospital
Boards.
x

G 14041

306

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

5.—Benefits.
Assistance in the institutions concerned is afforded to old persons,
infirm, blind and afficted persons, orphans, girls and women in need
of assistance, and persons coming out of prison.
Maintenance in the institutions is generally free of charge.
6.—Statistics.
1.—Number of beneficiaries.
The number of institutions and the number of inmates in 1933 were
as follows :
Controlling authority
Hospital Boards
Church of England ...
Roman Catholic Church
Presbyterian Church ...
Methodist Church
Baptist Church
Salvation Army
Undenominated associations, etc.
Total

Number
of
stitutions

No. of
inmates
31 Dec. 1933

27
17
16
16
5
1
20
15

1,539
714
1,568
451
187
64
735
543

117

5,811

2.—Income and Expenditure.
Copies of annual accounts (Income and Expenditure Accounts,
'etc.) of controlling authorities of benevolent and orphan asylums, all
of whom are voluntary bodies, are not now required to be supplied to
the Government.
Clw/ritable relief expenditure of Hospital Boards is divided under the
headings " Indoor " and " Outdoor " (see also under IV).
Indoor relief represents the cost of maintaining Boards' charitable
institutions.
Outdoor relief consists of charitable aid granted to persons other
than inmates of charitable institutions. During the year ended
31 March 1934, outdoor relief was extended in 21,940 cases at a cost
of £172,692, made up as follows :
£

Rations (i.e., either from Boards' own stores or orders
on storekeepers) ...
...
...
...
...
...
Clothing, boots or bedding
...
...
...
Fuel
Board and lodging, including children boarded out
...
Rent
•
Medical and nursing attendance (other t h a n t h a t supplied
by the Board)
Burial expenses
...
...
...
...
...
...
Transport and board or assistance en route
...
...
Cash grants
Miscellaneous ...
...
...
...
...
...
...
Salary of charitable relief staff
Total

...

93,393
920
1,840
8,478
32,849
4,114
1,256
2,347
19,091
1,419
165,707
6,985
172,692

N E W ZEALAND

307

Hospital Maintenance charges are fixed a t rates estimated to cover
the average cost of treatment. Approximately 70 per cent, of the
total fees accrued are remitted or written off (see also under IV).
B.—MENTAL

DEFECTIVES

1.—Legal Basis.
The Mental Defectives Act No. 6 dated 21 October 1911 as amended
by No. 66, 1914, No. 28, 1921-1922, No. 46, 1926, No. 23,1928, No. 45,
1932.
2.—Beneficiaries.
Any mentally defective person m a y by a reception order made by
the magistrate on application by a relative or other competent person
be received in an institution under the Act. The application m a y be
submitted t o the superintendent of an institution and the person detained in the institution pending the decision of the magistrate to whom
the request is forwarded. Certificates signed by two medical practitioners must be submitted to or obtained by the magistrate.
A constable m a y also apply for a reception order where he has
reason to believe t h a t a person is mentally defective, and neglected or
cruelly treated or suicidal or dangerous, etc., and is not under proper
observation, care or control.
I n the case of persons under the age of 2 1 , application must be
made b y the parent or guardian to the Director-General.
3.—Administration.
The Mental Hospitals Department administers the Act under the
direction of a Minister, the Director-General of Mental Hospitals, and
t h e D e p u t y Director-General. Superintendents, medical practitioners,
nurses, etc., are appointed for every public institution.
A special Board is established for the supervision of certain classes
of mentally defective persons, consisting of the Director-General of
Mental Hospitals, t h e Director-General of Health, the Director of
Education, t h e Controller-General of Prisons, and a medical officer
specially qualified in psychiatry, and two other members appointed
by the Governor-General of whom one shall be a woman.
4.—Financial Resources.
The cost of maintenance of mentally defective persons in any
public institution is a debt due t o the Crown by (i) the person detained,
whose property (if any) is applied to the maintenance of the person b y
a trustee, (ii) by the husband a n d (iii) by t h e father (if the person is
under 21 years of age). Payments may be forgone or reduced in
certain cases.
The public institutions are maintained out of public funds in so
far as expenses are not defrayed out of the above-mentioned payments.
5.—Benefits.
(a) Definition of risks.
A mentally defective person means a person who, owing to his
mental condition, requires oversight, care or control for his own good
or in the public interest.
u 2

308

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(b) Benefits in kind.
Mental defectives are maintained in public institutions or private
institutions admitted for this purpose.
Registers are kept by the special Board, which provides for the
supervision of the persons registered, enquires from time to time as to
the mental state and circumstances of mentally defective persons,
where required, and provides for the establishment and conduct of
psychological clinics.
6.—Statistics.
1.—Number of beneficiaries.
Number of persons on the register of mental hospitals and one
private hospital at the end of 1932 : males 3,903 ; females 2,980 ;
total 6,883 ; or 42-45 per 10,000 of population.
The total number of admissions to mental hospitals during the
year 1932 was 1,071 including 290 transfers.
2.—Income and expenditure.
Receipts and expenditure in 1932-1933 were as follows :
£

Receipts from patients, sale of produce
Maintenance expenditure
...
...
Net expenditure

...

...
...

163,963
404,010

...

240,047

or 3«. 2d. per head of population.

IV.—Medical Assistance for Persons of Insufficient Means
1.—Legal Basis.
Hospitals and Charitable Institutions Act, No. 18, dated
9 September 1926, as amended by No. 39, 1928 and No. 16, 1929,
No. 11, 22 and 45, 1932.
2.—Beneficiaries.
The Hospital Board administers charitable aid in its district and
has the control and management of public hospitals and certain other
institutions, chiefly old people's homes, within its district.
Where relief is granted by a Board to a person who has not resided
in the Board's district for six months prior to the grant the cost may
be recovered from the Board in whose district the person last resided
for twelve months under certain conditions.
In any case the cost of relief is under Section 51 of the Destitute
Persons Act 1910 recoverable from the person relieved, the husband
of that person, or from the parent where the person relieved is under
21 years of age.
Charges for relief are remitted in whole or part where persons responsible for payment are of insufficient means, i.e., where payment
would involve hardship. Approximately 70 per cent, of total feesaccrued are remitted or written off.

H E W ZEALAND

309

3.—Administration.
The country is divided into hospital districts and a Hospital Board
is established for every district, consisting of one or more representatives
of each or of groups of the local authority districts (counties, boroughs)
comprising the hospital area. Members are elected at the ordinary
general (triennial) election of the contributory local authorities.
4.—Financial Resources.
The expenses of the boards are covered as follows :
(1) Patients' fees and recoveries of charitable aid from persons
liable for the maintenance of destitute persons ;
(2) Bequests, voluntary contributions and gifts;
(3) Levies on local authorities ; maintenance expenditure : the
estimated net expenditure, after deduction of the estimated receipts
from the above sources and the estimated subsidy from the Government
on the levies from local authorities, is apportioned among the contributing local authorities within the district in proportion to the
capital value of the rateable property. Capital expenditure : half the
capital expenditure is defrayed out of levies on local authorities ;
(4) Government subsidies out of moneys appropriated for this
purpose by Parliament :
(a) until 31 March 1932, a subsidy on voluntary contributions and
bequests of one pound for one pound ;
(b) a subsidy on the levies from local authorities; on capital
expenditure one pound for one pound ; on maintenance expenditure according to scale (ranging from 14 shillings to 26 shillings
per pound), average for the Dominion one pound for one pound,
the subsidy being relatively greater where the requirements of
a hospital district are relatively high as compared with the
rateable capital value of the district.
Contributions under (3) and (4) make up roughly two-thirds of the
maintenance receipts, and the total capital requirements.
Limited Government subsidy on receipts by way of voluntary
contributions is also paid to separate institutions under the Hospitals
and Charitable Institutions Act.
5.—Benefits.
(a) Definition of risks.
The Hospital Board may establish, control and manage the
following institutions :
(1) Hospitals and other institutions for the reception or relief of
persons requiring medical or surgical treatment or suffering from any
disease, infectious or not;
(2) Charitable institutions for the reception or relief of children
or aged, infirm, incurable or destitute persons (see under " Benevolent
and Orphan Asylums " ) ;
(3) Maternity homes ;
(4) Convalescent homes ;

310

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1 9 3 3

(5) Sanatoria for persons suffering from consumption or other
disease ;
(6) Institutions for inebriates ;
(7) Reformatory institutions for women and girls and any other
institutions for a public charitable purpose.
The Hospital Boards may provide residential treatment or maintenance in such institutions and outdoor aid to sick or infirm persons
and to indigent and destitute persons.
Hospital Boards have not thus established inebriates' homes or
(with one exception) reformatory institutions, both this type of institution being usually administered by voluntary bodies of a benevolent
character.
(b) Benefits in kind.
1.—Residential treatment and maintenance.
For the purposes above mentioned, the Hospital Board may acquire
land, establish, purchase, erect and equip or repair buildings and
institutions. It must provide for hospitals for infectious diseases and
hospitals for non-infectious diseases.
Maintenance and treatment in such hospitals and institutions is
provided in the cases specified under (a) either in return for fees, or
by recovering expenses from persons liable under the Destitute Persons
Act, or free of charge.
2.—Outdoor relief.
(i) Medicines, disinfectants, surgical requisites and medical,
surgical and nursing attendance are provided for sick or infirm persons
not inmates of an institution.
(ii) Charitable aid is granted by way of food or other requisites
being provided to indigent, sick or infirm persons not inmates of
institutions.
(c) Cash benefits.
(1) Charitable aid by way of grants of money is provided for
indigent, sick or infirm persons not inmates of institutions.
(2) Grants of subsidies to such medical or nursing institutions,
benevolent institutions or private philanthropic associations as may
be approved by the Minister for this purpose.
(3) The establishment of bursaries for students of nursing or massage.
6.—Statistics.
Total number of beneficiaries :
(a) Charitable Aid Cases in 1933-1934 (year ended 31 March).
Number of
cases
Inmates of Board's Charitable Institutions
Outdoor (see III, p. 306)
Total

3,861
21,940
25,801

Number of
persons
affected
3,861
48,703
52,564

NEW

311

ZEALAND

(£>) Residential treatment in public hospitals, sanatoria, maternity
homes, etc., in 1933-1934 :
Inmates treated
Outpatients :
Number treated
Attendances

91,062 (59-1 per thousand of population)
81,599
386,796

Number of institutions : 130 including 69 general hospitals (2
with old people's homes), 1 chronic diseases hospital, 2 convalescent
homes, 45 maternity hospitals, 5 tuberculosis sanatoria and 1 tuberculosis prevention institution, 2 chronic tuberculosis hospitals, 5 infectious
diseases hospitals.

INCOME AND E X P E N D I T U R E I N 1933-1934
INCOME
Amount

Government contribution ...
Local authorities' contributions ...
Voluntary contributions
Recoveries from those assisted (patients' fees
charitable aid recoveries)
Rents, interest and dividends
Miscellaneous

and

Cash in bank
Receipts (and cash in bank) from loans for capital
purposes ...
Total

Per cen

643,812
586,315
13,737

39-5
36-0
0-8

338,444
25,056
23,312

20-8
1-5
1-4

1,630,676
45,862

100-0

83,692
1,760,230

ExPBNDmXRE

Hospital maintenance
Charitable relief :
Indoor
Outdoor (see I I I , p . 306)
Medical associations...
District nurses
Ambulances ...
Miscellaneous maintenance expenditure
Administration
Interest on loans
National Provident Fund ...
Capital expenditure
Total

Amount
£

Per cent

999,201

68-1

103,316
172,692
8,961
9,054
7,468
6,518
73,666
71,196
14,284

7-0
11-8
0-6
0-7
0-5
0-4
50
4-9
10

1,466,356
180,697

100-0

1,647,053

—

The expenses include those of Government institutions and of the
Mercury Bay Hospital Trustees.

312

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

V.—Maternity Assistance
1.—Maternity Allowances
See under Voluntary Social Insurance (National Provident Fund),
page 295.
Maternity allowances of £4 for each birth are granted out of public
funds to persons insured in the National Provident Fund and to
members of an approved friendly society, provided the parents'
income in the preceding twelve months did not exceed £270.
2.—Maternity Services
(a) State maternity hospitals.
For the five State Maternity Hospitals (St. Helens) women are
admitted where the husband's income does not exceed £5, or, in the
case of a family of over two children under sixteen, £6 per week. The
charge for the services, which include midwives' and maternity nurses'
attendance at the confinement and a fortnight's hospital treatment,
is up to £5 4s. according to ability to pay.
An Out-patients' Department attached to each St. Helens Hospital
provides nursing services at a charge of £2. The above charges include
medical supervision at the antenatal clinic, at the confinement if
necessary and during the lying-in period.
(b) Public maternity hospitals.
Under the control of Hospital Boards (see under IV Medical Assistance) 67 hospitals with maternity accommodation are maintained.
They are open to any district resident irrespective of income; the
charge varies in different districts from £1 10s. to £5 5s. a week for
those able to pay. Special charitable institutions are established for
single girls.
Of the 67 institutions, 27 are general hospitals having maternity
accommodation whilst the remaining 40 are either solely maternity,
or are maternity hospitals with limited accommodation available
for emergency general cases.
Cases admitted to the 40 latter institutions during 1933-1934
were 935 general and 3,384 maternity. The total maintenance cost
was £38,018 and fees received totaUed £13,270.
The total maternity cases admitted to the 67 Hospital Board
institutions with maternity accommodation was 6,292.
(c) Antenatal services.
Thirty-three free antenatal clinics are established in connection
with State and Public Maternity hospitals or maternal welfare societies.
Registered midwives and nurses work in conjunction with medical
attendants or midwives attending the patients during labour.
The total number of attendances in 1933 was 23,794. Instruction
pamphlets were also distributed.

N E W ZEALAND

313

VI.—Assistance for Children and Young Persons
A.—CHILD

WELFARE

1.—Legal Basis.
Child Welfare Act No. 22, dated 1 October 1925 as amended by
Nò. 61, 1927.
2.—Beneficiaries.
Children under 17 years of age come under the provisions of the
Child Welfare Act.
3.—Administration.
The Child Welfare Branch of the Department of Education
administers the Child Welfare Act and undertakes other work for the
protection of children and young persons. (See B. Education of blind,
deaf, feeble-minded or epileptic children.) It consists of the Superintendent administering the Act, the Deputy Superintendent and
•clerical officers, managers, matrons, boarding-out officers, etc.
4.—Financial Resources.
The institutions provided for in the Act are established out of
moneys appropriated for this purpose by Parliament. Other costs
are paid out of moneys appropriated by Parliament out of the
Consolidated Eevenue Fund.
5.—Benefits.
(a) Definition of risks.
1.—Neglected, indigent or delinquent children.
On the complaint or application of a constable or Child Welfare
officer that a child is neglected, indigent or delinquent, or is not under
proper control, or living in an environment detrimental to its physical
or moral well-being, the Children's Court may make an order committing the child to the care of the Superintendent or placing it under
the supervision of a Child Welfare officer for a specified period. The
child committed to the care of the Superintendent is placed in an
institution or boarded out. The child under the supervision of a
Welfare officer may by order of the Court be maintained in an institution for the whole or part of the period of supervision. A child
brought before a Children's Court for an offence may also be committed to the care of the Superintendent by the Court. The Superintendent may assume control of a child on application of the parents or
guardian according to agreement.
2.—Illegitimate children.
Child Welfare officers investigate cases of illegitimate birth and
render advice to the mother (see under (b) 2).
3.-—Children in private institutions.
Provision is made for the inspection and registration of all private
institutions for children.

314

INTERNATIONAL SÜBVEY OF SOCIAL SEBVICES, 1933

(b) Benefits in kind.
1.—Besidential assistance.
The Child Welfare Branch establishes and maintains receiving
homes, probation homes, training farms and training schools, convalescent homes or any other institution for the purposes of the Act.
Certain private institutions are deemed to be institutions under the
Act. Children under the control of the Superintendent of the Child
Welfare Branch may be placed in such institutions.
2.—Other assistance.
Children under control as a general rule must be boarded out to
suitable persons. Apart from payment for board, free medical, dental
treatment and medicines, school books, and stationery are provided
by the Branch.
Assistance is rendered by Child Welfare officers to unmarried
mothers, either in placing the child in a suitable foster home or acting
for the mother in affiliation proceedings, or assisting her in obtaining
employment, etc.
3.—Infant Life Protection.
Under the provisions of the Infants Act 1908 (Part V) an infant
under six years of age must not be maintained apart from parents
for more than six consecutive days in any private home unless the
foster parent is licensed. While in such homes supervision is maintained by trained nurses employed by the Child Welfare Branch.
6.—Statistics.
Including B : education of deaf, blind and feeble-minded children.
1.—Number of beneficiaries and institutions.
The number of children under control of the Child Welfare Branch
in 1933 was as follows :
Boarded out, a t service, with friends, maintained in
institutions, receiving homes, hospitals or convalescent
homes, etc. ...
...
...
...
...
...
...
Under supervision of Child Welfare Officers by Order of
Courts
Infant Life Protection
...
...
...
...
...
Deaf children a t School for Deaf (Sumner)...
...
...
Feeble-minded children in Special Schools ...
...
...
Total
New Zealand Institute for the Blind. Number of Government pupils paid for by the Department
...
...

4,031
850
923
116
239
6,159
19

There were 2,125 cases dealt with by the Children's Courts for the
year ended 31 December 1933. Of these 572 were placed under
supervision of Child Welfare Officers and 423 were committed to the
care of the State, but most of these were suitably provided for in the
community during the year.

NEW ZEALAND

315

Institutions and special schools.—The Boys' Farm at Weraroa
provides for boys of all ages who require a period of reformative
detention. There is a similar institution for delinquent girls at
Burwood, near Christchurch. Feeble-minded boys are educated in
an institution at Otakaike. A special school at Richmond provides
for girls : a residential school at Sumner for the teaching of deaf
children and the New Zealand Institute at Auckland (a private
institution) for the blind. Special classes are established for mentally
retarded children and for children suffering from speech defects, or who
are hard of hearing.
2.—Income and Expenditure in 1933
Income,
Becoveries Tj,„„_j if „„
from parents, Expenditure

£
Child welfare ...
School for the deaf ...
Schools for feeble-minded

23,680
2,512
2,792

134,619
7,321
14,155

28,984

156,095

N e t cost to State : £127,111
B.—EDUCATION

BLIND,

DEAF, FEEBLE-MINDED
CHILDREN

EPILEPTIC

1.—Legal Basis.
Education Act No. 56, dated 5 November 1914 as amended by
subsequent Acts.
2.—Beneficiaries.
Children coming under the Act must be over 6 and under 21 years
of age.
The Minister of Education may provide that a child suffering from
any of the defects in question shall be sent to a special school or
institution for the education of blind or deaf or feeble-minded or
epileptic children, if the parent of such a child fails to provide suitable
and efficient education.
3.—Administration.
The Child Welfare Branch of the Education Department provides
for the maintenance, education and training of such children.
4.—Financial Resources.
The cost of maintenance is met out of moneys appropriated by
Parliament for this purpose, but where possible refunds are obtained
by:
(i) Contribution by parents according to agreement with the
Minister, or by any near relative as defined by the Destitute
Persons Act 1910 Pt. I, if necessary.
(ii) Where the parent or near relative proves his inability to pay
the full cost, the deficiency not exceeding 8s. a week is defrayed
by the Hospital Board (see under IV) of the district in which the
child is domiciled prior to the order for admission.

316

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(iii) If the full cost of maintenance is not paid and the child becomes
entitled to any real or personal property in New Zealand, the
Public Trustee may take possession of such property and apply
it to the maintenance and benefit of the inmate.
5.—Benefits.
(a) Definition of risks.
Blind child : A child who on account of defective sight cannot be
efficiently taught with other children in ordinary schools.
Deaf child : Same definition but for defective hearing.
Epileptic child : A child unfit by reason of severe or frequent
epilepsy to attend an ordinary school but not an idiot or imbecile
according to the Mental Defectives Act.
Feeble-minded child : A child who is not an idiot or imbecile and
not merely backward, but, by reason of mental or physical defect,
is incapable of receiving proper benefit from instruction in ordinary
schools, but not incapable of receiving benefit from instruction in
special schools.
(b) Benefits in kind.
1.—Residential treatment.
Maintenance and education and training in special schools is
provided for.
2.—Boarded out.
The child sent to an institution may at the direction of the Minister
of Education be boarded out with duly qualified persons under conditions securing proper care and efficient and suitable instruction.
If the person reaches 21 years of age but is not deemed proper to be
free from attendance or control, application may be made to a Magistrate
for extending the period of control in the institution.
(c) Gash benefits :
None.
6.—Statistics.
(See under A. (Child Welfare) 6.)

Vu.—Allowances to Large Families
1.—Legal Basis.
The Family Allowances Act, No. 30, dated 9 September 1926, as
amended by No. 5 of 1931, Nos. 8 and 11 of 1932.
2.—Beneficiaries.
Except where otherwise decided by the Minister the scheme does
not cover parents who are
(a) aliens;
(b) Asiatics, whether British subjects or not, and whether naturalised
or not.

NEW ZEALAND

317

1.—Parents.
In order to qualify for an allowance, the applicant and his wife
(where she receives the allowance) must satisfy the following conditions :
(a) permanent residence in New Zealand for not less than one year ;
(6) weekly income not exceeding £3 5s. plus 2s. for each child in
excess of two ;
The allowance may be refused where the applicant or his wife
(c) are of notoriously bad character, or guilty of a dishonouring
offence or misconduct ; or
(d) have deprived themselves of property or income in order to
obtain an allowance.
2.—Children.
Qualifications for the children are :
(a) residence in New Zealand of not less than one year, or child
to be born in New Zealand ;
(6) age under 15 years ;
(c) legitimate child ;
(d) member of family ;
(e) child not in receipt of a pension under the Pensions Act or
War Pensions Act.
Benefit may be extended in case of a child totally incapable of
earning a living b}r reason of any physical or mental defect.
3.—Administration.
The Act is administered by the Commissioner of Pensions (see
Non-Contributory Pensions Scheme). The allowance is as a rule paid
to the wife of the applicant.
4.—Financial Resources.
All moneys payable under the Act as well as costs of administration
are defrayed out of moneys appropriated for the purpose by Parliament.
5.—Benefits.
(a) Definition of risks.
The allowance is granted to the father of three or more children
in respect of every child in excess of two.
(b) Benefits.
The allowance consists of a weekly payment of 2s. for each child
in excess of two, subject to a maximum income of £3 5s. plus 2s. for
each child in excess of two (including allowance). Income does not
include sick allowance or funeral benefit from friendly societies, or
interest on the value of property on which the family resides, and
furniture and personal eifects.

318

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
1.—Number of beneficiaries.
Number of allowances on 31 March 1934 : 12,145.
Claims accepted in 1933-1934 : 3,022.
Number of children of families receiving allowances on 31 March
1934 : 53,367 (of these 29,077 in excess of two).
2.—Expenditure.
Amount paid in 1933-1934 : £146,766.
Weekly Rates at which Allowances granted
Weekly rate ... Is. 2s. 3s. 4s. 6s. 6s. 7s. 8s. 9s. 10s. 12s. 14s. 16s.
Number granted 2 1,653 5 758 5 332 1 155 2 73
21
12
3

Numbers according to Size of Family
Number of children in excess of two
1
2
3
4
5
6
Number of families
1,584 776 348 177 93
22

7
18

8
4

Cost of administration : See Non-Contributory Pensions Scheme.

Vin.—Shipowners' Liability towards Sick or Injured Seamen.
1.—Legal Basis.
Shipping and Seamen Act No. 178, dated 4 August 1908, as amended
by No. 36, 1909, No. 37, 1911, No. 77, 1913 and No. 59, 1922 (section
10) (other amendments do not affect the shipowners' liability in case
of injury or sickness).
2.—Beneficiaries.
Provisions concerning medical treatment, etc., apply to any
person employed or engaged in any capacity on board any British
ship, including masters and apprentices. Members of the crew of a
foreign ship are taken in charge by their consular representative.
3.—Administration.
The Act is administered by the Marine Department. Superintendents of mercantile marine are appointed to supervise the application of the provisions of the Act.
4.—Financial Resources.
The shipowner is liable for the provisions of sanitary and other
accommodation.
Expenses of medical attendance, maintenance, burial and wages,
in case of injury or illness as defined are defrayed by the shipowner
without any deduction from wages.
In other cases reasonable expenses incurred by the owner in
respect of illness or death may be deducted from the wages.
5.—Benefits.
(a) Definition of risks.
The shipowner is liable for maintenance and treatment (and
burial expenses if death ensues) in case of injury in the service of the

N E W ZEALAND

319

ship or illness (other than venereal disease or illness due to the own
wilful act or default or misbehaviour of the seaman), until the patient
is cured, or dies or is returned to a proper port of return ; for medical
treatment on board ship in any case, and for maintenance, medical
treatment and cost of removal in case of temporary removal from
the ship for the purpose of preventing infection, etc., on account of
any illness.
The benefits provided for where a seaman or apprentice is left on
shore by an inter-colonial or home-trade ship are granted only where
the illness or accident wholly incapacitates the seaman from the
performance of his duty, and is likely to require medical treatment
for a period of not less than fourteen days ; it must have been contracted or sustained on board or in the service of the ship from which
the seaman is so left on shore, or of its owners.
(b) Benefits in kind.
Where the seaman sustains any injury on board ship necessitating
medical treatment, the master or officer in charge shall as soon as possible procure the services of a registered medical practitioner, and
where the practitioner so advises send the seaman to hospital.
Every foreign-going ship (except inter-colonial) having one hundred
•or more persons on board shall carry on board a duly qualified medical
practitioner.
Sanitary and hospital accommodation must be provided on the
ship. Home-trade ships of a certain tonnage or foreign-going ships
registered in New Zealand must keep a supply of medicine and medical
stores as prescribed.
The cost of providing the necessary surgical and medical attendance
and medicine, as well as maintenance to a master, seaman or apprentice
on board ship or until return to a proper return port, or while away
from the ship temporarily on account of illness for the purpose of preventing infection, is payable by the shipowner.
A seaman (or apprentice) left on shore in New Zealand by an intercolonial or home-trade ship is entitled to the cost of maintenance and
of medical attendance, etc., during incapacity up to the end of his
engagement, but for not more than three months and not less than one
month, the cost not to exceed that of treatment in a public hospital.1
Where the ship is foreign-going, an amount required by the
superintendent of the port must be deposited for the maintenance and
treatment of the seaman left on shore.
(c) Gash benefits.
Wages are payable during illness on board ship, except if caused
by the own wilful act or default of the seaman.
A seaman left on shore by an inter-colonial or home-trade ship is
entitled to full wages for three months or to the end of his engagement,
but for not less than one month during incapacity, and for not more
than one week after recovery or until re-employment.1 Any amount
1
A seaman entitled to these benefits may as an alternative require free
passage to the port in New Zealand, where in accordance with his agreement he
would be entitled to be discharged, and wages until arrival.

320

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

thus paid may be deducted from compensation (if anj') under the
Workers' Compensation Act.
IX.—Coal Miners' Belief Fund
1.—Legal Basis.
The Coal Mines Act, No. 39 (Sections 152-156) dated 1 October
1925, as amended by Finance Act No. 2 No. 40 (Section 36) dated
25 October 1930. Regulations Nos. 25-50 of the Regulations under
the Coal Alines Act, 1925, page 2081 of N.Z. Gazette of 16 June 1927.
2.—Beneficiaries.
Any person employed or working in or about a coal mine is covered
by the scheme. Coal mines include claystone, fireclay or shale mines. '
3.—Administration.
A Coal Miners' Relief Fund is established. All moneys paid into
the Fund are administered by the Public Trustee.
Coal Miners' Relief Fund Local Committees may be, and some have
been, established to investigate claims and assist in administering
relief in their districts. A Committee consists of not less than three
members elected by the persons employed or working in or about the
mine or mines concerned.
4.—Financial Resources.
The owner of every coal mine pays one halfpenny a ton on all
marketable coal raised into the Fund.
5.—Benefits.
(a) Definition of risks.
1.—Death by accident.
Relief is granted to families or dependants of coal miners who may
be killed in the course of employment or work.
2.—Other cases.
Necessary relief may be granted to coal miners in case of injury or
to famines or dependants of coal miners who may be injured.
(6) Benefits in kind.
Payments may be made from the Coal Miners' Relief Fund to
Coal Miners' Medical Clubs the formation of which is authorised by
the Minister of Mines on application of a coal miners' society or a
representative group of the employees. These clubs provide medical
or surgical attendance, relief, or requisites to coal miners.
(c) Cash benefits.
1.—Incapacity.
When a workman is off work through an accident he receives 2s. Id.
per day for every day except Sundays. Payment to continue on certificate of Medical Officer and Inspector, but in no case for more than
two years.

321

NEW ZEALAND

A workman who is permanently totally disabled as a result of an
injury whilst employed in or about a mine shall be granted a sum of £50,
and a workman permanently partially disabled may be granted a
proportionate part of £50, based on degree of disability prescribed by
Second Schedule to Workers' Compensation Act, 1922.
The Public Trustee may pay to any coal miner who through any
injury sustained in the course of his employment as a coal miner is
permanently totally incapacitated from work of any kind such weekly
allowance as may from time to time, subject to such conditions as he
may impose, be authorised by the Minister.
2.—Death.
A lump sum not exceeding £50 is paid to the widow and the children
under 16 years at the date of the death.
If there is no widow or children a lump sum as above is paid to
any near relatives who were wholly or partly dependent on the deceased miner at the time of his death.
Payments from the Fund do not affect compensation under the
Workmen's Compensation Act. Moneys paid out of the Relief Fund
are not deducted from compensation.
6.—Statistics.
Number of persons insured in 1933 : 4,386.
Number of beneficiaries : Not available.
INCOME AND E X P E N D I T U R E FOR THE Y E A R E N D E D 31 MARCH

1933

EXPENDITURE

INCOME

Contributions from employers
Interest from investments ...

Total

3,805
920

4,725

Ordinary relief payments
...
L u m p sum p a y m e n t s . . .
...
Payments to Local Committees
Special allowances
Public trustees—(Commission
and expenses)
...
...
Total

£
1,376
716
2,494
98
38
4,722

Funds at credit of Relief Fund on 31 March 1933 : £23,125.

FOURTH

PART

HOUSING
1.—Legal Basis.
Legislation relating to workers' dwellings was introduced by the
Government Advances to Workers Act, 1906, and the Workers'
Dwellings Act of 1910 (amended in 1914).
The provisions of these Acts were incorporated in the Housing Act
of 1919 which was amended in 1920, 1921-1922 and 1925.
X

O 14fi ' 1

322

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

2.—Beneficiaries.
The scope of the Act is defined in Article 13 of the Act of 1919.
No person other than a worker shall be qualified to acquire a dwelling
under the provisions of the Act. " Worker " means any person
engaged in manual or clerical work (whether as employee or on his or
her own account) who is not in receipt of an annual income exceeding
£300, increased by £25 in respect of each child or other person dependent on him. The beneficiary may not be owner of any land other
than that offered as security. No advance can be made to any
applicants who do not take up their permanent residence on the
property.
3.—Authorities and Undertakings concerned in Building.
The institution administering the distribution of advances under
the Act of 1919 was the Housing Board attached to the Ministry of
Labour. In 1922 the functions of this Board were transferred to the
State Advances Board under the control of the Ministry of Finance.
The distribution of the advances may also be effected through the
agency of Associations of Public Servants, establishing settlements,
employers providing workers' dwellings for their staff, harbour boards,
erecting dwellings for workers in their employment, and by banks providing dwellings for their employees.
4.—Financing by Public Authorities.
The Board may place at the disposal of employees dwellings for
which the beneficiary has to pay a first deposit of not less than £10.
Payment of the balance may be effected by instalments within a
period not exceeding 30 years from the date of possession in the case of
a dwelling erected mainly of wood, or 36-£ years in the case of any other
dwelling. The beneficiary shall pay interest at the rate of 5 per cent.
per annum. on the amount of the purchase money outstanding.
Not more than £1,250 may be granted to any one borrower and an
advance must not exceed 95 per cent, of the cost of the dwelling house
inclusive of the cost of land and improvements. The Board may advance an amount not exceeding £100 for the purpose of improving the
land belonging to the dwelling.
Where an advance is required for the purpose of erecting a dwelling,
the appHcation form must be accompanied by evidence as to the
purchase price of the section and the tender accepted or contract entered into for the erection of the dwelling. The amount of the loan
granted by the Board may be advanced in progress payments as the
erection of the building proceeds. An inspection and report must be
made by an officer of the Valuation Department prior to any progress
payment being made on account of the loan, and for each inspection
a fee of 10s. 6d. is payable by the applicant. The Department requires that not less than three inspections be made, and that the
fencing be completed before all the loan is paid over.
Special advances may be granted to associations of public servants
for the establishment of village settlements or garden suburbs. Subsidies for this purpose may not exceed 90 per cent, of the value of the

323

SEW ZEALAND

land to which the application relates. The interest on the amount
thus advanced may not exceed 5 per cent, per year. The moneys
advanced are repayable by instalments extending over a period not
exceeding 30 years and such instalments may, by agreement with any
officer, be deducted from his salary or wages.
Loans may also be granted to employers for the provision of
dwelling houses for workers permanently employed by the employer.
Such loans shall not in any case exceed 75 per cent, of the value of the
security offered.
Exemptions from certain fiscal duties are provided for. Stamp
duties are not payable on any agreement of sale and purchase, or
lease, etc., made for the purposes of the Act.
The Government may set apart Crown land for workers' dwellings.
The Board may acquire land or dwellings and erect dwellings for the
purposes of the Act.
For the financing of the scheme the Board disposes of the moneys
in the Workers' Dwellings (later Housing) Account established by
the Act of 1910, now incorporated in the State Advances Account.
The Ministry of Finance may borrow £750,000 annually for the
distribution of advances to workers.
The amount which may be borrowed for the purpose of financing
settlements for public servants is £250,000.
For loans to employers under the Act, £250,000 annually may be
borrowed by the Minister.
The Ministry of Finance may also borrow money amounting to not
more than £1,000,000 for advances to local authorities by virtue of
the State Advances Act of 1913.
5.—Statistics.
The total advances current under the relevant sections of the Act
as at 31 March 1934 were £40,606,506 representing 23,739 loans, and
the arrears of interest as at the above date amounted to £862,832.

FIFTH PART
HOLIDAYS W I T H PAY
1.—Basis oî Schemes.
The regulation of holidays with pay where such holidays are
subject to regulation is contained in the arbitration awards and
collective agreements.
2.—Beneficiaries.
Holidays with pay are generally granted to shop and warehouse
employees, hairdressers' assistants, hotel, café and restaurant employees,
and to cinema operators, theatrical (front of house) employees, tramway and omnibus employees and passenger transport drivers, ships'
masters and officers, marine engineers and chief stewards.
X 2

324

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

As regards manual workers, only certain classes receive holidays,
Among these are the workers employed in the printing and kindred
trades, bakeries, butter and cheese factories, butchers' shops, artificial
manure factories (in so far as they work 7 days a week), aerated
water factories and some gold and coal mines, fire brigade employees.
cooks and stewards, seamen and firemen.
3.—Conditions under which Holidays are granted.
The employed person is usually entitled to his holiday after 12
months' service, with the exception of workers employed in butter
and cheese factories where the right to a holiday is acquired after 8
consecutive months of service during the season. In the case of cooks
and stewards and seamen and firemen the service must be 12 months
continuously on one ship.
4.—Length of Holidays.
The length of the holiday is generally one week. For bakers and
pastrycooks it is 6 working days; in chemical manure factories, 10
working days for persons working in shifts 7 days a week ; for passenger
transport drivers and for workers in butter factories and in the iron
industry (workers working in shifts 7 days a Aveek), two weeks. In
cheese factories, 3 weeks are granted. In coal mines a holiday is given
at Öhristmas of 10 days, from 24 December to 2 January inclusive;
in gold mines, from 24 December to 1 January, that is 9 days. Tramway
and omnibus employees, generally 12 working days. Chief stewards,
3 weeks, cooks and stewards and seamen and firemen, 14 days ; engine
drivers, 2 weeks for workers working seven shifts per week, 1 week
for workers working six shifts per week. Fire brigadesmen, 2 weeks
during first four years and 3 weeks thereafter. Ships' masters and
chief engineers (marine), 3 weeks, ships' officers and other marine
engineers, 2 weeks.
5.—Rate of Remuneration during Holidays.
During the holidays the employee is generally entitled to full wages.
6.—Statistics.
None available.

POLAND
SUMMARY
PAGE

FIRST PART :

Statistics

of Population

S E C O N D P A R T : Social Insurance

326
...

...

I.—Workmen's Compensation

...

326

...

326

...

329

I I I . — N o n - M a n u a l W o r k e r s ' I n v a l i d i t y , Old-Age
and Widows' and Orphans' Insurance ...

333

I V . — M a n u a l W o r k e r s ' I n v a l i d i t y , Old-Age a n d
Widows' and Orphans' Insurance...
...

336

II.—Sickness Insurance

...

V.—Unemployment Insurance
THIRD P A R T :

...

Social Assistance

...

344

...

348

I . — P u b l i c Social Assistance

...

348

I I . — S h i p o w n e r s ' L i a b i l i t y t o w a r d s Sick or I n jured Seamen
...
...
...
...

351

I I I . — M e d i c a l Assistance for A g r i c u l t u r a l W o r k e r s

352

F O U R T H P A R T : Housing

FIFTH PART:

Family

SIXTH P A R T :

Holidays

...

Allowances
with Pay

...

;..

...

353

...

356

...

360

...

326

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

FIRST

PART

STATISTICS OF POPULATION"
(CENSUS OF 9 D E C E M B E R

1931)

Total Population

32,133,000

N U M B E R AND D I S T R I B U T I O N OF E M P L O Y E D P E R S O N S

Salaried
employees

Branch of economic activity
Agriculture, forestry, stock-breeding, horticulture and fishing ...
Mines, quarries and industry
Commerce and insurance ...
Communications and transport ...
Public administration
The Church, social organisations
and institutions ...
Services (including servants)
Public works
Total

18,000
94,000
76,000 \
97,000/
160,000

15,000

Workers

Total

1,507,000
1,053,00o1
208,000
113,000
r
22,000

1,525,000
1.147.0001
381,000
273,000

420.000 2
52,000

\
460,000*

3,375,000

i- 457,000
52,000
3,835,000

Including 379,000 home-workers.
Including 331,000 servants.
Excluding the army, the police force, custom-house officers, the clergy and the staff of
foreign embassies.
2
8

SECOND

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1,—Legal Basis.
Compulsory insurance against industrial accidents is governed 1 :
In former Russian and Austrian territory, by the old Austrian Act
of 28 December 1887, as amended by the Acts of 1894, 1909 and 1917,
and by the Polish Acts of 7 July 1921 and 30 January 1924 ;
In former Prussian territory, by the Social Insurance Code of 1911
and by the Order of 12 April 1921 ;
In Upper Silesia, by the same Code as amended by the Provincial
Acts of 18 June 1924, 8 July 1925 and 1 October 1928.
1
As from 1 J a n u a r y 1934, the accident insurance system was revised and
consolidated for the whole of Polish territory by the Social Insurance Act of
28 March 1933, as amended by the Legislative Decree of 24 October 1934.

POLAND

327

2.—Scope.
(a) Former Russian and Austrian Territory.
Insurance is compulsory for all persons employed in any undertaking
(workshops, establishments) using motive power or boilers or any other
undertaking carried on for the purpose of gain, including agricultural
and forestry undertakings and all work implying a definite risk of
accident and expressly mentioned in the Act (building work, ice
breaking, etc.).
The Act does not apply to agricultural undertakings of less than
30 hectares in area.
(b) Former Prussian Territory.
Insurance is compulsory not only for industrial undertakings in
which there is a definite risk of accident such as factories (i.e. undertakings engaged in working up or transforming materials and regularly
employing at least ten workers) and undertakings using machinery
driven by mechanical power, but also for all agricultural or horticultural undertakings, iirespective of their size or the number of
workers employed, including small agricultural producers.
3.—Administration.
Insurance is administered by public institutions which have the
monopoly of insurance in their own area.
In former Russian and Austrian territory, the Industrial Accident
Insurance Institution at Lwow is the only authorised insurance carrier.
In former Prussian territory (upper Silesia excepted) insurance is
administered by the Social Insurance Institution at Poznan, with
the exception of agricultural undertakings which are insured with the
Agricultural Accident Insurance Institution, also at Poznan. Undertakings and establishments situated in Upper Silesia insure with the
Social Insurance Institution at Krolewska Huta.
4.—Financial Resources.
The sums required to cover the cost of benefits, administrative
expenses, and payments towards the reserve fund are derived from
contributions payable by the employers. Undertakings and establishments are divided into classes according to risks, and the contribution
of each employer is fixed in accordance with the class of his undertaking
and his total wages bill. Each class is divided into several sub-classes,
so that the actual risk in each undertaking or establishment and the
safety measures adopted can be taken into account. In the Western
Provinces, the total sum payable by the agricultural employers is
distributed in accordance with the amount of land tax paid by each
individual employer. The average contribution rate is :
In former Russian and Austrian territory : 1-2 per cent, of the total
wages bill in industrial undertakings as a whole ; 0 • 8 per cent, of the
total wages bill in agricultural undertakings as a whole.

328

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

In former Prussian territory : 1 • 8 per cent. (2 • 6 in Upper Silesia)
of the total wages bill in industrial undertakings as a whole.
5.—Benefits.
Insurance covers all accidents occurring in undertakings and
establishments hable to insurance and accidents occurring during
domestic or other work carried out at the order of the employer. In
former Russian and Austrian territory, insurance also covers accidents
occurring on the journey from the worker's home to his place of work
and back, on condition that the journey was not interrupted in the
workman's interests or for any other reason foreign to his work.
(a) Benefits in kind.
All victims of accidents are
surgical treatment and drugs.
following the accident the cost
insurance institution, thereafter

entitled to the necessary medical and
During a certain period immediately
of treatment is borne by the sickness
by the accident insurance institution.

(b) Benefits in case of incapacity.
1. In case of accident resulting in total incapacity, the workman
is entitled to a pension equal to two-thirds of his annual earnings.
The pension due to a workman who requires the constant attendance
of another person is equal to his annual earnings. In former Prussian
territory (Upper Silesia excepted) only one-third of the annual
earnings in excess of 1,800 zloty are taken into account in computing
pension rates.
2. In case of accident resulting in partial incapacity, the pension
is equal to a fraction of the total pension corresponding to the reduction
of earning capacity occasioned by the accident.
(c) Benefits in case of death.
The widow, children, and, in certain cases, other near relatives
of the deceased person are entitled to pensions.
1. The widow's (or invalid widower's) pension is equal to 20 per
cent, of the annual earnings of the deceased.
2. Each child of the deceased person under 15 years of age is
entitled to a pension equal to 15 per cent, of the annual earnings of the
deceased, or 20 per cent, for children who have lost both parents
(in the central and southern provinces).
The combined widow's and orphans' pensions may not exceed
two-thirds of the annual earnings of the deceased in the central and
southern provinces, and 60 per cent, in the western provinces.
3. When the combined widow's and orphans' pensions do not reach
this maximum, other near relatives are entitled to the difference
up to a maximum of 20 per cent, of the basic wage, in the following
order of priority : father and mother, grandparents, grandchildren
under 15 years of age.

329

POLAND

6.—Statistics.
Number of insured persons in 1933

3,115,825

. INCOME AND E X P E N D I T U R E FOK

1933

(in thousands of. zloty)
INCOME

EXPENDITURE

Contributions
outstanding "Ì
from previous years
... I
Contributions for current f
year
...
...
... J
Interest
Miscellaneous
...
...
Total

44-30«
'
6,225
94
50,657

Current pensions
Medical treatment ...
Accident prevention
General expenses
Administrative expenses .
Miscellaneous
Excess of income ...
Total

::}

33,326
1,749
542
6,281
5,701
3,058
50,657

BALANCE S H E E T AT 31 D E C E M B E R

1933

(iu thousands of zloty)
LIABILITIES

ASSETS

Cash in hand and at bank .
Securities
Mortgage loans
Outstanding contributions.
Real property
Furniture and fittings
Miscellaneous
Total

23,221
30,257
18,014
48,407
17,164
21,030
158,093

Caution money on deposit
and liabilities towards the
Staff Pension Fund
... )• 28,548
Sundry creditors
Temporary deposits
Excess of assets
...
...
129,545
Total

158,093

II.—Sickness Insurance
A.—GENERAL

SCHEME

1.—Legal Basis.
Sickness insurance is compulsory. In 1933, it was governed by
the Act of 19 May 1920 and the Presidential Decree of 29 November
1930 relating to the organisation and working of social insurance
institutions, and in Upper Silesia by the old German legislation
(Book II of the Social Insurance Code of 1911, as amended on several
occasions).1
2.—Scope.
Sickness insurance is compulsory for all persons employed as paid
workers, irrespective of their age, occupation, nationality and the
amount of their earnings.2 Domestic servants and home workers are
also covered.
1
Since 1 January 1934, sickness insurance is regulated for the whole of
Polish territory by the Social Insurance Act of 28 March 1933, as amended by the
Legislative Decree of 24 October 1934. By an Order issued on 29 September
1933 under the Act of 28 March of the same year, the provisions of t h e Act of
19 May 1920 were declared inapplicable for agricultural workers, in so far as
it was a question of risks materialising after 31 October 1933.
2
Under the Legislative Decree of 24 October 1934 sickness insurance no
longer applies as from 1 April 1935 to wage earners whose monthly earnings
exceed 725 zloty.

330

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Agricultural workers, who in certain parts of Poland were hable to
insurance, were exempted from this liability as from 1 November
1933. From that date onward, a special system of medical assistance
for agricultural workers and members of their family was introduced
in virtue of the Order of 24 October 1933 (V. Third Part : Social
Assistance : III).
3.—Administration.
With the exception of Upper Silesia, where there are several classes
of sickness funds as authorised by the Social Insurance Code, insurance
is administered by territorial funds of an inter-occupational nature.
The territory of Poland (with the exception of Upper Silesia) is divided
into 67 insurance districts. In each district there is a single insurance
fund insuring against sickness and maternity risks and acting as the
local organ of the Social Insurance Institution for invalidity, old-age
and widows' and orphans' pension insurance and workmen's compensation.
4.—Financial Resources.
The financial resources are derived from the contributions of the
insured persons and their employers.
The insured persons are divided into wage classes, according to
their earnings, and the contribution is equal to 6 • 5 per cent, of the basic
wage of the class to which they belong. This basic wage corresponds
to the lower limit in each class, and is fixed at 0-75 zloty a day in the
lowest class.
Three-fifths of the contribution is payable by the employer and
two-fifths by the insured person. The employer pays the entire
contribution for insured persons whose wages are not paid in cash.
The State must cover the cost of treatment of insured persons
who become unemployed ; such persons maintain their right to medical
assistance during a maximum period of 13 weeks. The State must
also refund one-half of the cost of cash maternity benefit to insured
women members of the family of insured persons.
5.—Benefits.
(a) Sickness.
1. Medical assistance, including medical treatment, medicines and
therapeutic requisites, and orthopaedic appliances, is granted for a
period of 39 consecutive weeks beginning on the first day of sickness.
2. Cash benefit equal to 60 per cent, of the basic wage is paid for a.
period of not more than 39 consecutive weeks beginning on the third
day of sickness.
3. Medical assistance and cash benefit maybe replaced by hospital
treatment with full maintenance; in such cases the sick person is
entitled, if he has one or several persons dependent on him, to an
allowance equal to one-half of the cash benefit.

331

POLAND

4. Family benefit, i.e. medical treatment and free medicines
during not more t h a n 13 weeks, is granted in case of sickness among
members of the family of the insured person who Uve in his household
and are entirely dependent on him, such persons to include the wife
(or husband), ascendants and descendants, brothers and sisters.
5. Under the heading of additional benefit, the rules of the fund m a y
grant medical assistance for a period of not more t h a n 52 weeks a n d
supplementary cash benefit of 5 per cent, of the basic wage in respect
of each child, provided t h a t the total cash benefit, including supplements, does not exceed three-quarters of the basic wage.
(b)

Maternity.
1. Women who have been insured for at least four months during
the year preceding confinement are entitled to maternity benefit
comprising :
(i) medical treatment and obstetrical assistance before, during
and after confinement ;
(ii) confinement benefit amounting to t h e basic wage, during t h e
whole period of absence from work, b u t not for more t h a n eight
weeks, six of which must be subsequent to the confinement ;
(iii) a nursing bonus, during not more t h a n 12 weeks after t h e
expiry of the right t o confinement benefit.
2. Members of the family of the insured person are also entitled t o
maternity benefit, which in this case consists of obstetrical aid and t h e
nursing bonus.
(c) Death.
The funeral benefit granted in case of the death of an insured
person amounts t o three times the weekly basic wage. Funeral
benefit granted to the insured person in case of the death of a member
of his family amounts to one-half of the funeral benefit granted in
case of the death of the insured person.
6.—Statistics.
All funds with the exception of those in Upper Silesia :
Average number of insured persons in 1933

...

INCOME AND E X P E N D I T U R E FOB

...

1,896,493

1933

(In thousands of zloty)
INCOME

Contributions for current
year
Contributions for previous
years
Refunds
Interest on property
Miscellaneous
Excess of expenditure

Total

EXPENDITURE

173,122
5,687
7,919
2,613
2,539
17,990

209,870

Cash benefits
...
...
Medical treatment ...
...
Medicines and dressings ...
Hospital
treatment
and
transport of siok persons
Cost of administration
...
General expenses ...
...
Administration of estate ...
Payment to redemption fund
Payment to reserve fund ...
Total

27,360
49,614
23,166
38,059
21,311
28,433
1,524
3,173
17,230
209,870

332

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in thousands of zloty)
ASSETS

LIABILITIES

Cash in hand and a t bank ..
Outstanding employers' con
tributions ...
Sundry debtors
Therapeutic and other sup
plies in stock
Furniture and fittings
Real property
Excess of liabilities
Total

15,773
115,626
22,782

Current liabilities
Redemption fund
Reserve funds

...
...

60,170
26,584
200,022

4,480
26,050
84,331
17,734
286,776

Total

286,776

B.—SPECIAL SCHEME FOR UPPEB SILESIA

The Silesian scheme differs in several respects from the general
scheme.
1.—Scope.
Insurance is compulsory for workers in all occupations, including
agriculture, except salaried employees whose remuneration exceeds
the amount fixed by the rules of the fund.
2.—Administration.
In addition to the territorial funds there are also works funds,
occupational funds, and special funds for persons employed in mining
undertakings. In the managing bodies of the funds, two-thirds of
the seats are held by representatives of the insured persons and onethird by employers' representatives.
3.—Financial Resources.
These are constituted by contributions amounting to 6 per cent.
of the basic wage ; two-thirds of the contributions are borne by the
insured persons and one-third by their employers.
4.—Benefits.
(a) Cash benefit is paid during a maximum period of 26 weeks and
is equal to half the basic wage.
(b) Medical assistance for members of the insured person's family
is an optional benefit, which the funds may introduce through their
rules, without being obliged to do so.
(c) Maternity benefit, granted during not more than 10 weeks to
the wives of insured persons, is equal to half the basic wage.
5.—Statistics.
Average number of insured persons in 1933

...

INCOME AND E X P E N D I T U R E FOR

...

172,113

1933

(in thousands of zloty)
EXPENDITURE

INCOME

Contributions
Miscellaneous
Deficit (in certain funds)
Total

...

19,678
2,801
1,465
23,944

Benefits in cash and in kind
Cost of administration
Miscellaneous
Total

Assets of sickness funds a t 31 December 1933 : 20,020,000 zloty.

21,591
1,772
581
23,944

POLAND

333

IH.—Non-Manual Workers' Invalidity, Old-Age and Widows' and
Orphans' Insurance
1.—Legal Basis.
Compulsory invalidity, old-age and widows' and orphans' insurance
for non-manual workers was regulated in 19331 for the whole of the
Polish Republic by the Presidential Decree of 24 November 1927 relating to the insurance of intellectual workers and by the Presidential
Decree of 29 November 1930 relating to the organisation and working
of social insurance institutions.
2.—Scope.
All non-manual workers who have attained 16 years of age are hable
to compulsory insurance, irrespective of sex, nationality, and amount of
earnings.
The following workers are deemed to be intellectual workers :
Persons performing duties of management and supervision, such as
managers of undertakings, engineers, technicians, builders and constructors, superintendents, foremen or other employees placed on the
same footing, who have the technical direction of work in an establishment or in a department of an establishment and are responsible for
such work ; officials in agricultural and forestry undertakings ; persons
exercising the fine arts and artistes employed in theatres, film acting
and broadcasting stations; journalists; the medical, dental, etc.,
professions; persons employed in offices and accountancy, draughtsmen, telephonists, telegraphists ; salesmen and shop assistants who
have passed six classes in a secondary school or secondary technical
school ; teachers and tutors ; masters and officers of the mercantile
marine.2
The following persons are not liable to insurance :
Persons incapable of engaging in their occupation on account of
infirmity ; persons in receipt of a pension amounting to not less than
40 per cent, of the first salary drawn by them in the posts which they
held after acquiring the right to a pension; permanent officials and
agents of the State and other institutions of a public character who are
already covered by a superannuation scheme ; clergymen and persons
belonging to religious communities who are engaged in social work
without remuneration ; foreign diplomatic and consular agents ; pupils
of secondary schools; employees of theatrical and orchestral undertakings which do not occupy fixed premises.
The following persons may be exempted from insurance liability
at their own request :
Students ; persons studying for the bar and articled pupils of the
legal profession ; doctors ; articled pupils to the professions of engineer,
architect and surveyor ; elected members of organs of bodies corporate ;
1
I n 1934, the Decree of 24 November 1927 was amended by the Act of
15 March 1934. Moreover, the organisation of intellectual workers' invalidity,
old-age and widows' and orphans' insurance was greatly changed by the Act of
28 March 1933, as amended by the Legislative Decree of 24 October 1934.
* B y the Order of 21 August 1934 t h e obligation to insure was extended t o
navigators and pilots employed in aerial navigation.

334

INTERNATIONAL SUBVEY Oï SOCIAL SEBVICES, 1933

clergymen of the denominations recognised by the State ; as well as
the wife (or husband), children, stepchildren and their husbands or
wives, parents and grandparents of the employer.
3.—Administration.
Insurance is administered by four territorial institutions, each of
which has the monopoly of insurance in its own area. 1
Each institution has four supervisory bodies :
(a) The council (the supreme authority), composed of a chairman,
a vice-chairman and representatives of the insured persons and
the employers, whose number is fixed by the rules of the institution at not more than 45 ;
(ö) The governing body, the executive of the institution, composed of a chairman, a vice-chairman and 9 to 15 members, of
whom two-thirds are elected by the insured persons and onethird by the employers ;
(c) The auditing committee, composed of six members and the
same number of substitute members, elected for one year by
the council of the institution from among its own members,
two-thirds from among the employers and nne-third from
among the insured persons ;
(d) The pension committee, composed of a chairman, a vicechairman and three members, including two representatives
of the insured persons and one employers' representative,
elected by the council of the institution from among its own
members.
4.—Financial Resources.
The financial resources are derived from the contributions payable
by the insured persons and their employers. No financial assistance is
required from the State.
Contributions are based on the remuneration in cash and in kind
and on any share in profits received by the insured persons. The
insured persons are divided into 14 wage classes, according to the
remuneration they receive. The first class consists of insured persons
who earn less than 90 zloty a month or who work without remuneration,
and the last, those who earn over 720 zloty a month.2
The joint contribution amounts to 8 per cent, of the lower limit of
the class to which the insured person belongs, this limit being fixed at
1
During 1934 the four territorial institutions were wound u p . Under the
Legislative Decree of 24 October 1934 t h e insurance system will in future be
managed by the Central Social Insurance Institute in Warsaw, in which there
has been set up a special pension insurance fund for intellectual workers.
4
As from 1 January 1934 the wage classes were abolished in pursuance of the
Order of 27 December 1933, contributions and benefits in kind being based on
the actual earnings of insured persons, in so far as these do not exceed 725 zloty
a month.

335

POLAND

not less than 60 zloty and not more than 720 zloty a month. The percentages of the joint contribution payable respectively by the employers
and the insured persons vary with the remuneration as follows :
Monthly remuneration
zloty
L e s s t h a n 60
...
F r o m 60 t o 400
F r o m 4 0 0 t o 800
O v e r 800

...

Percentage of
contribution
payable
by
employer
...
100
60
50
40

Percentage of
contribution
payable
by
insured person
—
40
50
60

5.—Benefits.
The benefits provided by insurance include invalidity, old-age and
widows' and orphans' pensions, and, in certain cases, lump sums paid
to insured persons and their dependants. In addition, curative and
preventive medical aid is granted.
In order to be entitled to a pension, the insured person must have
paid contributions during at least 60 months.
(a) The invalidity pension is granted to insured persons incapable
of exercising their occupation as the result of physical or mental
infirmity or a dechne in their physical and mental powers. A person
is deemed to be incapable if his capacity to exercise his occupation
has fallen at least 50 per cent, below that of a physically or mentally fit
person of similar occupational training. The pension consists of a
basic amount and an increment in proportion to paid-up contributions.
The basic amount is equal to 40 per cent, of the basic remuneration.
The increment, which is acquired after the completion of 120 contribution months, is fixed for each month after the 121st at one-sixth per
cent, of the basic remuneration.
For each dependent child the pensioner also receives an allowance
equal to one-tenth of the basic amount of the pension. The total
amount of the pension, including increment and allowances, may not
exceed the basic remuneration.
(6) The old-age pension is acquired at the age of 65, but insured
men who have completed 480 contribution months and have attained
their sixtieth year, and insured women who have completed 420
contribution months and have attained their fifty-fifth year, may claim
their pensions forthwith. Old-age pensions are calculated according
to the same principles as invalidity pensions.
(c) The widow's pension amounts to three-fifths, the pension of a
child who has lost its father or mother to one-fifth, and that of a child
who has lost both parents to two-fifths of the pension to which the
insured person was, or would have been entitled, if he had been an
invalid at the time of his death.
A lump sum is granted to the insured person, or to his widow
(widower), children or parents if he is incapacitated or dies before
completing the qualifying period. This sum is equal to the basic
remuneration for one year or, in the case of parents, to one-half of the
basic remuneration.

336

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Insured persons who have completed the qualifying period of
60 months in insurance and have exhausted their right to medical aid
from a sickness insurance institution are entitled without any time
limit to such aid at the expense of the pension insurance institution.
In order to prevent threatened invalidity, preventive treatment may
be granted by the insurance institution; similarly, when there is a
possibility of the rate of invalidity being reduced, curative treatment
may be sanctioned.
6.—Statistics.
Average number of insured persons in 1933

231,510

INCOME AND E X P E N D I T U R E FOB

1933

(in thousands of zloty)
INCOME

Contributions
Interest on capital and income from real property...
Miscellaneous

EXPENDITURE

68,840
29,741
369

Pensions
18,617
6,160
Other benefits
Medical treatment ...
... ^
Cost of establishment and
revision of pensions
Cost of collection of contri- - 3,580
butions
General administrative expenses
...
...
2,612
Miscellaneous
67,981
Excess of income
Total

98,950

Total

BALANCE S H E E T AT 31 D E C E M B E R

98,950
1933

(in thousands of zloty)
ASSETS

Cash in hand and at bank ..
Securities
Mortgage loans
Outstanding contributions..
Real property
Miscellaneous
Total

LIABILITIES

72,593
195,232
72,229
68,935
94,822
44,748
548,559

Caution money on deposit... ~)
Excess contributions charged )- 12,380
Other liabilities
...
... J
Excess of assets
...
...
536,179

Total

548,559

IV. -Manual Workers' Invalidity, Old-Age and Widows' and Orphans'
Insurance
This chapter contains an analysis and statistics of- the various
invalidity, old-age and widows' and orphans' pension insurance
schemes in force until the end of 19331 for the whole of the territory of
Poland. These schemes include :
A.—A manual workers' scheme in former Prussian territory ;
B.—A railwaymen's scheme in former Prussian territory ;
C.—A miners' scheme in former Austrian territory ;
D.—A miners' scheme in Upper Silesia.
1
Invalidity, old-age a n d widows' and orphans' insurance became compulsory, on 1 January 1934, for workers employed in industrial and commercial
undertakings in all parts of Polish territory ; these branches of insurance are also
compulsory for working miners, in pursuance of the Act of 28 March 1933.
The former local systems have been wound up, with the sole exception of the
two special schemes in Upper Silesia (manual workers' inter-trade pension
insurance scheme and the miners' pension insurance scheme).

337

POLAND
A.—MANUAL

WORKERS' SCHEME IN FORMER PRUSSIAN TERRITORY

1.—Legal Basis.
The insurance of manual workers is compulsory in former Prussian
Territory. I t is governed :
I n the Western Provinces by the Social Insurance Code of 1911,
as amended on various occasions and notably b y the Decree of 26 J u n e
1924, t h e Act of 13 May 1925 and the Decree of 30 November 1930 ;
I n Upper Silesia, b y the same Code as in force in 1922, as amended
on several occasions and notably by t h e Silesian Acts of 20 December
1922, 31 J a n u a r y and 17 October 1923, 3 J u n e 1924 and 7 December
1927, a n d by the Order of 22 September 1930. 1
2.—Scope.
Insurance is compulsory for all persons employed for remuneration,
irrespective of sex, nationality and the occupational branch in which
they are employed.
Salaried employees covered b y the pension insurance scheme for
intellectual workers do not come under the manual workers' scheme
of invalidity, old-age and widows' and orphans' insurance.
Railwaymen in former Prussian territory come under the manual
workers' scheme and the complementary occupational schénie (see
under B).
3.—Administration.
The scheme is administered in former Prussian territory (Upper
Silesia excepted) by the Insurance Institution a t Poznan, and in
Upper Silesia by the Invalidity Insurance Institution a t Chorzow.
The governing bodies of the Institutions consist of representatives
elected by the insured persons and the employers and of members
nominated b y the provincial governor.
4.—Financial Resources.
The financial resources of the Institutions of Poznan and Chorzow
are derived from contributions payable in equal parts b y the insured
persons and their employers. The State pays subsidies towards t h e
cost of current pensions.
Insured persons are divided into five wage classes, according to the
amount of their wages (six classes in Upper Silesia). The joint weekly
contribution amounts in the lowest class to 0-30 zloty (0-40 in Upper
Silesia) and in the highest class t o 0-90 zloty (2-50 in Upper Silesia).
The State subsidy is 50 zloty (100 in Upper Silesia) a year for each
invalidity, old-age and widow's pension, and 25 zloty (50 in Upper
Silesia) for each orphan's pension.
5.—Benefits.
The insurance funds grant invalidity and old-age pensions, pensions
or lump-sum payments t o survivors, as well as curative a n d preventive
treatment.
1
In 1934, the Social Insurance Code was amended by the Order of 26 April
1934 and the Act of 22 June 1934.

G 14641

338

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The right to a pension is dependent on the fulfilment of a qualifying
period of 200 contribution weeks, of which at least 100 must be
completed under compulsory insurance.
(a) The invalidity pension consists of a basic amount and an
increment in proportion to paid-up contributions. The basic amount is
fixed according to the wage classes to which the insured person has
belonged during the 500 contribution weeks, missing weeks being
counted in the lowest wage class, while surplus weeks are not taken into
consideration. The fraction of the basic pension payable for each
contribution week varies with the wage class between 0-15 and 0-24
zloty. The increment varies according to the number of paid-up
contributions and amounts, according to wage class and for each
weekly contribution, to between 0-04 and 0-14 zloty.
In Upper Silesia, the basic amount for all wage classes is fixed at
160 zloty a year, the variable increment varying according to wage
class, between 0-05 and 0-24 zloty for each contribution week.
The subsidy payable by the State amounts to 50 zloty (100 in
Upper Silesia) a year.
(6) The old-age pension is granted to insured persons who have
completed a qualifying period of 1,200 contribution weeks and have
attained their sixty-fifth year. In Upper Silesia, this pension is granted
from the sixtieth year and after a qualifying period of 200 contribution
weeks, of which at least 100 have been completed in compulsory
insurance.
Whereas in Upper Silesia the old-age pension is computed in the
same manner as the invalidity pension, in the Western Provinces it is
composed of a basic amount payable by the Institution of Poznan
and a State subsidy. The basic amount varies between 70 and 220
zloty a year, according to wage class, the State subsidy amounting to
50 zloty for all classes.
(c) The widow's pension is granted to widows suffering from
permanent invahdity or from temporary invahdity lasting more than
26 weeks. In Upper Silesia, every widow of over 60 years of age is
regarded as incapable. The pension amounts to 30 per cent, (40 in
Upper Silesia) of the basic pension, including the increment to which
the deceased person was or would have been entitled ; to this is added
a State subsidy of 50 zloty (100 in Upper Silesia) a year.
(d) The child's pension is granted to children under 15 years (18 in
Upper Silesia), and amounts to 15 per cent, of the pension of the
deceased person ; the State subsidy amounts to 25 zloty (50 in Upper
Silesia) a year. Widows who are themselves insured and orphans
already in receipt of a pension through the other parent are not entitled
to a pension.
The insurance 'scheme provides preventive and curative treatment
with a view to preventing or reducing the invalidity of an insured
person or pensioner.

339

POLAND

6.—Statistics.
Insurance Institution of Poznan
Average number of insured persons in 1933

approx. 452,000

INCOME AND E X P E N D I T U B E F O B 1933

(in thousands of zloty)
ExPENDITUItE

INCOME

Contributions
Interest
Income from property
Fines
Miscellaneous
Excess of expenditure

8,761
2,035
233
8
930
1,007

Pensions
Medical treatment ...
Treatment in institutions ...
Supplementary benefits
Cost of administration
Cost of establishment and
revision of pensions
Cost of appeals
Collection and checking of
contributions
Miscellaneous •

12,974

Total

BALANCE S H E E T AT 31 D E C E M B E R

11,162
387
1
10
996
91
59
235
33
12,974

1933

(in thousands of zloty)
ASSETS

LIABILITIES

Cash in hand and a t bank ...
Securities
Mortgage loans
Sundry debtors
Real property, furniture and
fittings
Total
B.—RAILWAYMEN'S

8,933
9,014
10,946
2,072
7,184
38,149

Creditors
Depreciation fund ...
Maintenance of property, etc.
Mortgage debts
Miscellaneous
Rosorve fund
Total

37
72
71
1,39ft
2
36,571
38,149

SCHEME IN FORMER PRUSSIAN TERRITORY

In addition to being liable to insurance under the manual workers',
old-age, invalidity, and widows' and orphans' insurance scheme in
force in former Prussian territory (see under A), railwaymen in this
territory are also covered by a complementary insurance scheme.
1.—Legal Basis.
This insurance is governed by section 1360 of the Social Insurance
Code of 1911 and by the Rules of the Railwaymen's Pension Fund of
Poznan.
2.—Scope.
Complementary insurance is compulsory for railwaymen. The
liability of railwaymen to insure under the annual workers' scheme in
force in former Prussian territory automatically entails insurance
under the complementary scheme.
3.—Administration.
The manual workers' scheme and the complementary scheme are
both administered by the Railwaymen's Pension Fund of* Poznan and
its three branch offices.
T2

340

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The resources of the complementary insurance scheme are derived
from contributions payable in equal parts by the management of the
railways and the railwaymen. Insured persons are divided into
nine wage classes. The Weekly contribution varies from 0-60 to
2 • 10 zloty, according to Wage class.
5.—Benefits.
Benefits are granted to persons in receipt of pensions under the
manual workers' scheme after the completion of a qualifying period
of five years in complementary insurance.
(o) The complementary invalidity pension amounts to not less than
135 and not more than 393 zloty a year after five years in insurance,
and to not less than 406 and not more than 1,239 zloty a year after
40 years in insurance.
(6) The complementary widow's pension amounts to not less than
121-80 (265-80) zloty, and to not more than 383-80 (868-80) zloty a
year, if the deceased husband has been insured at least 5 (40) years.
This pension is granted to a widow even if she is not in receipt of a
pension under the manual workers' scheme, provided that the deceased
completed the statutory qualifying period for complementary insurance.
(c) The complementary child's pension amounts to one-half of the
widow's pension (two-thirds for orphans), and is granted until the child
attains 18 years of age.
In addition to pensions, complementary insurance guarantees
the payment of funeral expenses to an amount varying between
105 and 240 zloty, according to the wage class of the deceased person.
6.—Statistics.
Railwaymen's Fund, Poznan
Number of insured persons a t 31 December 1933
INCOME AND E X P E N D I T U R E r o n

1933

...

(SECTIONS A

...
AND

34,447
B)

(in thousands of zloty)
EXPENDITURE

INCOME

Contributions
Interest
Miscellaneous
State subsidy towards current pensions

6,262
258
97

Benefits
Cost of administration
Miscellaneous
Excess of income ...

6,054
192
669
191

Total

7,106

489
7,106

Total

BALANCE S H E E T AT 31 D E C E M B E R

1933

(in thousands of zloty)
LIABILITIES

ASSETS

Cash in hand and a t bank ...
Securities
Keal property
Miscellaneous
...
...
Total

1,206
9,841
11,727
12,456
35,230

Sundry creditors
Excess of assets

Total

2,479
32,751

35,230

POLAND

341

C.—MINERS' SCHEME IN FORMER AUSTRIAN TERRITORY

1.—Legal Basis.
This branch of insurance is governed by the old Austrian Act of
28 July 1889, as amended by the Legislative Decree of 22 March 1929.1
2.—Scope.
Insurance is compulsory for all workers employed on former
Austrian territory in mining undertakings or undertakings engaged
in extraction of mineral Wax, irrespective of their age, nationality or
earnings.
Salaried employees and all workers regarded as such in the employment of mining undertakings are covered by the general scheme of
invalid^, old-age and widows' and orphans' insurance for intellectual
workers.
3.—Administration.
Insurance is administered by several mining funds of which the most
important are situated in Cracow and Boryslaw.
The general assembly of each fund consists of representatives of the
insured persons and the mine-owners, two-thirds of whom are elected
by the former and one-third by the latter. The governing body is
composed similarly and is presided over by a mine-owner or his
representative.
4.—Financial Resources.
The financial resources are derived from contributions payable by
the insured persons and their employers in equal parts. The contribution is uniform for all insured persons and the rate is fixed by the
rules of each fund. The minimum monthly rate prescribed by the Act
is 6 • 20 zloty.
Normally no financial assistance is required from the State. The
Cracow Fund, however, receives a subsidy to balance income and
expenditure when necessary.
5.—Benefits.
The scheme provides for invalidity pensions and for pensions and
allowance to dependants of deceased pensioners or insured persons.
(a) The invalidity pension is granted to insured persons who have
completed a qualifying period of 60 months, and whose capacity for
work in the mining industry is reduced by at least 50 per cent. The
pension is fixed and uniform for all insured persons irrespective of the
length of period in insurance or the amount of their earnings. The
pension rate is established by the rules of each fund and may not be
lower than the statutory minimum of 20 zloty a month. At present
the pension amounts to 20 zloty in the Boryslaw Mining Fund and to
25 zloty a month in the Cracow Fund.
1
I n pursuance of the Act of 28 March 1933, steps were taken to wind up this
trade system during 1934; while continuing to benefit from certain special
advantages, miners will in future belong to the general inter-trade insurance
system.

342

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(6) The widow's pension is granted to the widow of a deceased
pensioner or insured person who has completed a qualifying period of
60 months. The rate of a pension is not subject to any addition as
regards age or earning capacity. The pension amounts to one-half
of the pension of the deceased person.
(c) Children's pensions are paid up to 16 years of age, and the amount
paid in the case of each child is one-quarter of the deceased parent's
pension, or one-half of such pension if the child is an orphan.
The Cracow Mining Fund grants pensions to ascendants, brother»,
sisters and grandchildren dependent on the deceased person, if they
are living in necessitous circumstances.
The combined widow's and orphan's pensions may not exceed the
amount of the deceased person's pension (three-quarters of such
pension in the Boryslaw Fund), and the combined pension granted to
more distant relatives, one-half of such pension.
6.—Statistics.
Cracow and Boryslaw Funds
Average number of insured persons in 1933

7,092

INCOME AND E X P E N D I T U R E FOR

1933

(in thousands of zloty)
INCOME

Contributions
Interest
Miscellaneous
Excess of expenditure

EXPENDITURE

755
75
5
523

Pensions
Funeral benefit
)
Commutation of pensions .. >
Cost of arbitration ...
Medical fees
Travelling expenses...
General administrative ex
penses
Miscellaneous

1,178

1,358

Total

BALANCE S H E E T AT 31 DECEMBER

131
49
1,358

1933

(in thousands of zloty)
ASSETS

Cash in hand and in bank ...
Securities
...
...
...
Outstanding contributions
Real property
...
...
Miscellaneous
...
...
Total

D.—MINERS'

LIABILITIES

39
209
76
543
36
903

Caution money on deposit ...
Sundry creditors
Excess of assets

:::}

Total

S C H E M E nsr U P P E R

178
725

903

SILESIA

1.—Legal Basis.
In addition to the manual workers' scheme of invalidity, old-age
and widows' and orphans' insurance (see under A), miners in Upper
Silesia come under a complementary system of invalidity insurance
which is based on the old Prussian Act of 12 June 1912, relating to
mining funds.

POLAND

343

2.—Scope.
Complementary insurance is compulsory for all workers employed
in mining undertakings, smelting works and allied establishments.
Salaried employees and workers regarded as such in the employment
of mining undertakings come under the general scheme of invalidity,
old-age and widows' and orphans' insurance for intellectual workers
(see under III).
3.—Administration.
The scheme is administered by two occupational institutions, the
Pension Insurance Section of the Mining Fund at Tarnowskie Gory and
the Pension Insurance Section of the Pszczyna Mining Fund at
Katowice.
The general assembly of these funds consists of mine-owners and
elected representatives of the insured persons.
4.—Financial Resources.
The financial resources are derived from contributions payable by
the insured persons and their employers. No financial assistance is
required from the State.
The insured persons are divided into six wage classes according to
their earnings, the highest class consisting of those whose wages
exceed 225 zloty a month.
In 1930 the contribution rate was fixed for the three lower wage
classes at 8 per cent, and for the three higher wage classes at 12 per
cent, of the basic wage of each class. The contribution is paid in equal
parts by the insured person and his employer.
5.—Benefits.
The scheme provides for invalidity pensions and for pensions and
allowances to the dependants of deceased pensioners or insured persons.
Benefits in kind are also granted.
(a) The invalidity pension is granted to insured persons who have
completed a qualifying period of three years and are no longer able to
work in the mining industry. The pension rate is established by the
rules of each fund. The Tarnowskie Gory Fund grants a pension
consisting of a fixed amount of 160 zloty a year and of an increment
which varies with the number of paid-up contributions in the various
wage-classes. The total pension, including increments, amounts on
an average to 900 zloty a year. The Pszczyna Fund does not guarantee
a basic amount, but a pension varying with the number and amount of
the contributions paid by the insured person during the whole of his
working career.
(Ò) The ividow's pension amounts to 60 per cent, of the pension to
which the deceased person was or would have been entitled. In case
of re-marriage, the widow receives a lump sum equal to double her
annual pension.
(c) The children's pension, which is granted up to 15 or 16 years,
according to the fund, is fixed at 11 zloty a month and at 14-50 zloty
a month for orphans.

344

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Funeral benefit is granted on the death of an insured person or
pensioner and on the death of a member of his family. This benefit is
fixed at 120 and 50 zloty in the Tarnowskie Gory Fund and at 124 and
52 zloty in the Pszczyna Fund.
Persons in receipt of pensions may receive as an optional benefit
medical and pharmaceutical assistance ; similarly widows and children
under 16 years of age may be granted benefits in kind.
6.—Statistics.
Tarnowskie Gory and Pszczyna Funds
Number of insured persons in 1933
...
...
...
INCOME AND E X P E N D I T U R E FOK

...

53,827

1933

(in thousands of zloty)
INCOME

Ordinary contributions
Special contributions
Interest and income from
real property
Miscellaneous
Excess of expenditure
Total

ExPENDITUKE

14,649

.—
5,319
101
1,461

Cash benefits
...
...\ 20,502
Medical treatment ...
... J
Cost of administration : staff ~|
and material
...
... >
907
Upkeep of property
... J
Miscellaneous
121

21,530

Total

BALANCE S H E E T AT 31 D E C E M B E R

21,530
1933

(in thousands of zloty)
ASSETS

LIABILITIES

Cash in hand and in bank ...
Securities
Mortgage loans
Outstanding contributions...
Real property
Miscellaneous
Total

1,363
3,654
991
540
26,186
8,646
41,380

Caution money on deposit... \
Sundry credits
...
... j
Excess of assets

Total

1,978
39,402

41,380

V.—Unemployment Insurance
There are two unemployment insurance schemes, one for manual
workers, the other for non-manual workers.
A.—MANUAL WORKERS' SCHEME

1. —Legal Basis.
Workers' unemployment insurance is compulsory and is based on
the Act of 18 July 1924 as amended on several occasions and latterlv
by the Act of 17 March 1932 and the Decree of 27 October 1933.
2.—Scope.
Unemployment insurance covers all workers over 16 years of age
who are employed in industrial, mining, metal-working, commercial,
communication and transport undertakings, or in other estabUshments
operating on industrial lines, even if not carried on for purposes of
gain, provided that such undertakings employ at least five workers.

POLAND

345

The Minister of Social Welfare may exempt from insurance liability
all workers employed in undertakings operating for less than six
months in the year and workers employed on land improvement work
lasting less than eight months in the year. He may also exempt
from insurance liability workers employed on public Works. In 1933,
this class of worker Was exempted from insurance liability, with the
exception of persons employed on work financed with the help of loans
granted by the Employment Funds.
The Minister of Social Welfare may extend the right to unemployment benefit to persons on short time whose weekly earnings do not
exceed the normal earnings for three days' work. This provision has
never actually been put into practice.
For the computation of claims for unemployment benefit account
is also taken of work performed in undertakings situated in the following
countries : Austria, Belgium, Czechoslovakia, Danzig (Free City of),
France, Germany, Luxemburg, Netherlands and Rumania. Work
performed in other countries is taken into consideration if the worker
in question has been employed at least 13 weeks in Poland after his
return from abroad.
3.—Administration.
The insurance scheme is administered by the Unemployment Fund
attached to the Ministry of Social Welfare.1 The Fund has 22 district
committees; certain duties are entrusted to independent local
authorities.
4.—Financial Resources.
The financial resources are derived from contributions payable by
the undertakings and the insured persons and from State subsidies.
Contributions from undertakings employing workers liable to
insurance are fixed at 1 • 5 per cent, of the wages paid, and contributions
from insured persons at 0-50 per cent, of the wages earned. For
seasonal workers the contribution is 4 per cent, including 2 per cent.
payable by the employer and 2 per cent, by the worker.
The State subsidy amounts to 50 per cent, of the employers' and
workers' contributions, that is to say, to 1 per cent, of the wages
earned by insured workers, the State being entitled to demand a
refund of half the total subsidy from districts in which the principal
industrial and mining undertakings are situated.
5.—Benefits.
Unemployed workers who were liable to unemployment insurance
during at least 26 weeks during the 12 months immediately preceding
the notice of their claim are entitled to benefits. For the purposes of
unemployment insurance a working week is deemed to mean six Working
days. In case of unfavourable conditions in the labour market, the
Minister of Social Welfare may reduce the number of working days
deemed to constitute a working week. A decision of this kind was
actually taken in 1933 with regard to seasonal workers for whom the
working week was fixed at four working days.
1
I n pursuance of a Decree by t h e President of the Republic on 24 October
1934, the Unemployment Fund was abolished and its functions transferred to
the Employment Fund.

346

INTEKNATIONAL SURVEY OF SOCIAL SEEVICES, 1 9 3 3

During 1933 the benefit paid, after a Waiting period of 10 days, to
unemployed persons during a period of not more than 13 weeks1
amounted to :
30 per cent, of the basic wage, in the case of a single worker ;
35 per cent, of the basic wage, in the case of a Worker with one or
two dependants ;
40 per cent, of the basic wage, in the case of a worker with three to
five dependants ;
50 per cent, of the basic wage, in the case of a worker with more
than five dependants.
The worker's real wage is used as a basis for the computation of
benefit ; no account is taken of wages in excess of 6 zloty a day.
Benefit was originally paid weekly in arrears but subsequently it
was paid at the end of every fortnight.
Unemployed persons returning from abroad were divided into eight
classes according to their weekly wage, benefit being computed on a
basic wage varying from 15 to 36 zloty.
6.—Statistics.
Number of insured persons in 1933

...

696,023

INCOME AND E X P E N D I T U R E FOR 1933 1

(in thousands of zloty)
EXPENDITURE

INCOME

Contributions of insured
persons
Contributions of employers
Subsidies from the public
authorities
Interest
Miscellaneous

5,441
16,322
10,881
5

1,215

Cash benefits
Cost of administration
Commission on collection of
contributions
Upkeep of employment e x changes ...
Miscellaneous
Excess of income ...
Total

33,864

Total

BALANCE S H E E T AT 31 D E C E M B E R

26,360
3,799
495
282

1,673
1,255
33,864

1933

(in thousan ds of zloty)
LIABILITIES

ASSETS

Cash in hand
Current accounts at bank ...
Stocks and shares ...
Separate
account
with
Treasury ...
Outstanding
contributions
and fines ...
Suspense
account
(debit
balance) ...
Balance of sums owed b y
auxiliary institutions
Real property
Securities
Brought forward from previous years
1

1,555
46

3,964
12,611
1,105
186

1,731
117

138,205

Banks
Debt of Treasury ...
Reserve to cover doubtful
assets
Sums due to undertakings ...
Suspense account (credit
balance
Balance of sums owed to
auxiliary institutions
Depreciation of property ...
Sums due for insurance of
intellectual workers
Sums due by the Employment F u n d
Excess of assets

Total
Total
159,527
Report on the activities of the Unemploym*>nt Fund for 1933, Warsaw, 1934.

16,994
137,489
2,611
73
308
27
104
517
149

1,255
159,527

1
The Minister of Social Welfare may extend this period u p to a maximum of
17 weeks in cases of prolonged unemployment where the financial situation of
the Fund permits.

POLAND

347

B.—NON-MANUAL WOBKEES' SCHEME

1.—Legal Basis.
The compulsory "unemployment insurance of non-manual workers
is based on the Presidential Decree of 24 November 1927, as amended
on various occasions.
2.—Scope.
Unemployment insurance is compulsory for all non-manual workers
employed by other persons or by private or public bodies corporate,
irrespective of sex, nationality, the duration of employment and the
remuneration received.
The insurance does not cover persons under 16 years or over 60
years of age, provided in the latter case that they have not been insured
previously.
3.—Administration.
Assurance is administered by the insurance institutions for nonmanual workers. On 1 April 1935, these institutions were replaced by
a single Institution.
4.—Financial Resources.
The financial resources are derived from contributions payable by
the insured persons and their employers. No financial assistance is
required from the State.
The joint contribution amounts to 2-8 per cent, of the basic
remuneration corresponding to the Wage class. The maximum basic
remuneration has, however, been fixed at 720 zloty a month.
The employer pays the entire contribution of insured persons who
receive no cash remuneration or a salary of less than 60 zloty a month.
In wage classes from 60 to 400 zloty, the employer and the insured
person each pay 1 • 4 per cent, of the basic remuneration ; if the insured
remuneration is between 400 and 800 zloty, the employer pays 1-2 per
cent, and the insured person 1 • 6 per cent. ; if the remuneration exceeds
800 zloty, the employer pays 1 per cent, and the insured person 1 • 8 per
cent, of the basic remuneration. Insured persons whose remuneration
exceeds 720 zloty also pay a supplementary contribution amounting to
1-68 per cent, of the difference between 720 zloty and the actual
remuneration.
5.—Benefits.
The calculation of unemployment benefit is based on the average
remuneration during the 12 months preceding loss of employment.
The right to unemployment benefit is conditional on the completion
of a qualifying period of 12 contribution months during the 24 months
preceding the dismissal of the insured person.
Seasonal workers specifically mentioned in the Act are not granted
unemployment benefit during the dead season.
Unemployment benefit is paid during a period of six months.
This period is prolonged by three months for insured persons who have
completed 30 months in insurance and for persons of at least 60 years

348

INTERNATIONAL SURVEY OF SOCIAL SERVICES. 1933

of age who have completed 24 months in insurance. A prolongation
varying from one to two months with the length of the period completed
in insurance is granted in the case of persons responsible for the
maintenance of at least three members of their family.
Benefit is paid at the rate of 30 per cent, of the annual salary in the
case of unmarried unemployed persons and at 40 per cent, of the
annual salary for married persons. A special allowance equal to
10 per cent, of the basic benefit is granted for each member of the
family dependent on the unemployed person. The total family allowance may not exceed the basic benefit. Benefit may not be less than
30 zloty a month except in cases where the last salary received was lower
than that amount.
In 1933, the unemployment benefit was reduced by from 5 to 25 per
cent, in accordance with the different classes of basic remuneration.
No reduction was made in connection with remuneration of 60 to
120 zloty.
6.—Statistics.
Number of insured persons in 1933

231,510

INCOME AND E X P E N D I T U R E

TOR

1933

(in thousands of zloty)
INCOME

EXPENDITURE

Contributions
Interest
Miscellaneous
Excess of expenditure

19,494
2,728
25
2,983

Total

25,230

Benefits
Cost of administration
General expenses
Miscellaneous
Total

BALANCE S H E E T AT 31 D E C E M B E R

22,420
1,500
184
1,126
25,230

1933

(in thousan ds of zloty)
ASSETS

LIABILITIES

Outstanding contributions...
Miscellaneous
Total

16,536
5,530

Creditors
Miscellaneous
Excess of assets

22,066

Total

19,223
818
2,025
22,066

THIRD PART

SOCIAL ASSISTANCE
I.—Public Social Assistance
1.—Legal Basis.
Social assistance is regulated by Articles 102 and 103 of the Polish
Constitution of 17 March 1921, by the Social Assistance Act of
16 August 1923, and by a series of Decrees promulgated under that Act.
The fundamental legislative texts in force at present are :
The Act of 18 February 1925 establishing a Social Assistance
Council composed of persons taking an active part in social life, and
which is required to give an opinion on draft Bills and regulations
concerning social assistance ;

POLAND

349

The Decree of 22 April 1927 relating to the supervision and control
of the activities of social assistance institutions, as amended on
22 March 1928 ;
The Decree of 14 October 1927 for the suppression of vagabondage
and mendicity ;
The Decree of 25 May 1925 relating to the establishment of homes
and workhouses ;
The Decree of 16 January 1928 relating to the construction and
upkeep of establishments for the education and assistance of children
and young persons ;
The Decree of 6 March 1928 relating to social assistants and social
assistance committees ;
The Decree of 11 March 1927, issued under the Act of 2 July 1924
on the work of young persons and women, concerning the installation
and maintenance of day nurseries in undertakings employing at least
100 women.
2.—Beneficiaries.
According to the Act of 16 August 1923, social assistance granted
at public expense is intended to meet the indispensable requirements
of all persons who are unable to support themselves out of their own
means or the proceeds of their labour, and to prevent such a state of
affairs.
As necessary means of existence, assistance comprises maintenance,
clothing, housing with heating and lighting and medical aid. Provision
is also made for the supply of working tools and the taking of measures
calculated to restore earning capacity. In the case of children,
assistance includes the necessary education, and vocational training
for young persons.
Assistance also includes the grant of funeral benefit.
3.—Administration.
According to the Act of 16 August 1923, the organisation of social
assistance is entrusted in the first place to the communal unions.
The task of communal unions in the towns and in country districts
is to grant direct relief in the form of cash assistance or assistance in
kind.
The district communal unions and exempted towns are required
to set up and manage establishments for the assistance of mothers
and children, orphanages, and homes for the aged and disabled.
The communal unions of the Provinces, and until their establishment the district inter-communal unions and the exempted towns,
are required to set up and manage establishments for children and
adults in need of special assistance.
The district communal unions and the exempted towns may form
inter-communal unions with a view to setting up the special establishments mentioned above.
In order to ensure the efficiency of social assistance, communal
social assistance committees and communal social assistants have
been appointed.

350

IXTEKNATIONAX, SURVEY OB' SOCIAL SERVICES, 1933

At least one social assistant is appointed in each commune while
in the case of an urban or rural commune of over 5,000 inhabitants
there has been established a social assistance committee composed of
one representative of the communal administration, two members of
the communal council, a certain number of social assistants and
delegates from the social assistance associations and institutions.
The social assistance referred to above is granted in two different
ways. It may be granted by an institution to persons boarded and
lodged on the premises or by an institution open to persons living in
their own homes ; in the latter case assistance is granted on a temporary
or permanent basis as circumstances require.
There are assistance establishments for children and young persons
and separate establishments for adults.
In addition to institutions maintained in accordance with the law
by the communal and inter-communal unions there are a number of
social assistance institutions run by the public authorities, private
associations and foundations.
4.—Financial Resources.
The cost of poor relief is borne mainly by the communal and
inter-communal unions. The expenditure resulting for the unions is
covered by :
(a) The ordinary income of the communal and inter-communal
unions;
(b) The funds or income from property given for such purposes
by individuals or bodies corporate ;
(c) State subsidies, devoted in the first place to the assistance of
children and young persons but of which a part is also devoted
to the maintenance of establishments for adults ;
(d) Public charity.
Endowed institutions play an important part in this field. They
own a large amount of valuable property given for such purposes and
take over a large part of the work of the communal unions. These
institutions which provide both general and medical assistance usually
carry out their activities on premises under their immediate control.
(a) Assistance for children and young persons.
In 1933, there existed 887 residential institutions for children and
young persons, including 47 infant homes and 56 special establishments
for difficult, abnormal, blind, deaf and dumb children. During the
year these establishments housed 44,177 children, who received food
and clothing, medical treatment and the general or technical education
corresponding to their age and aptitudes.
In addition to the above, there are also a large number of nonresidential institutions such as day nurseries, maternity schools,
hostels for children and young persons, food kitchens, kindergartens
and night-shelters for the young.
Important work in oonnection with the assistance of children and
young persons is carried on by whole-time and part-time holiday camps
which are open both in the summer and winter.

POLAND

351

During the year, 100,612 indigent children were sent to holiday
camps and curative institutions in the country, while another 60,143
children passed through the part-time camps. During the winter
season 21,400 children were sent to whole-time and part-time camps.
In addition, 396 maternity assistance centres, the main object of
which is to reduce infant mortaUty, provided assistance for 1,215,000
children.
Labour legislation provides for the establishment of day nurseries
in factories and itinerant maternity assistance sections. During 1933,
34 nurseries were set up in factories, while 56 maternity posts were
organised in connection with 74 establishments employing an aggregate
of 19,830 women.
(b) Assistance for aged, disabled, infirm, incurable and abnormal persons
and for those incapable of work.
In this field, assistance was granted in the form of temporary or
permanent benefits in cash or in kind (foodstuffs, housing, etc.).
In addition, 22,119 persons were housed in the 616 assistance
institutions open in 1933. Special establishments for the deaf and
dumb housed 191 patients, homes for incurables—1,397, and compulsory
work houses—910.
(c) Measures to abolish mendicity, vagabondage and prostitution.
The number of workhouses where work is compulsory was three ;
beggars and tramps were also placed in workhouses where work was
voluntary.
(d) Free medical aid centres.
Attention must be called to the " health centres," which include
anti-tuberculosis dispensaries, anti-venereal disease dispensaries, dispensaries treating trachoma, maternity and child assistance centres, etc.
In 1933, 224 health centres provided assistance for 453,000 persons.
5.—Statistics.
STATISTICS FOR

1933

State subsidies for purposes of social assistance (1933—
1934 estimates of the Ministry of Social Welfare)
...
1933-1934 budgets of the communal and inter-communal
unions
Voluntary contributions (in round
figures)
...
...
Contribution of the Employment F u n d towards social
assistance in 1933-1934 :
I n cash
I n kind
Expenditure covered by assistance endowed institutions...
Total

zloty
57,991,000
85,100,000
10,000,000
17,972,000
13,850,000
27,733,000
212,646,000

H.—Shipowners'Liability towards Sick or Injured Seamen
1.—Legal Basis.
The individual liability of the shipowner towards sick or injured
seamen was based in 1933 on the provisions of the former German
legislation (Seamen's Code, Commercial Code).

352

IXTERNATIOXAL SURVEY OF SOCIAL SERVICES, 1933

From 1 January 1934, persons employed on Polish sea-going vessels
were also insured against the risks of sickness, invalidity, old age,
death and industrial accident in accordance with the Act of 28 March
1933 and subject to the conditions laid down in the Order of 29
December 1933.
2.—Scope.
The provisions concerning shipowners' liability apply to all members
of the crew and all other persons employed on board on behalf of the
shipowner.
3.—Benefits.
In case of sickness or accident occurring at sea or in a foreign port,
the shipowner must provide the seamen with maintenance, and medical
treatment and care.
A seaman who falls sick or is injured after the voyage has begun is
entitled to his wages until the date when he is disembarked.
The shipowner is further required to repatriate seamen who, by
reason of sickness or injury, have had to be left behind abroad.
If the seaman dies after the voyage has begun, the shipowner
must pay the expenses of burial.
4.—Statistics.
The number of officers and seamen covered by the provisions
concerning shipowners' liability was 187 in 1930.
During the same year the expense incurred by shipowners for the
medical aid of sick or injured seamen was 13,097 zloty.

III.—Medical Assistance for Agricultural Workers
1.—Legal Basis.
This branch of medical assistance is based on the Order of
24 October 1933 issued in pursuance of the Social Insurance Act of
28 March 1933.
2.—Beneficiaries.
Medical treatment and medicines at the employers' expense are
granted to agricultural workers employed in agriculture, forestry, or
horticultural undertakings, in fishing undertakings, and in allied
establishments.
The following persons are not entitled to benefits : persons employed
temporarily in agriculture whose period of employment with the same
employer does not exceed 25 consecutive days, and persons who do not
obtain their principal livelihood from agriculture and whose earnings
do not exceed 0 • 50 zloty a day.
A worker who is entitled to medical treatment and medicines is also
entitled to similar assistance for his wife and for his children under
15 years of age.
3.—Administration.
The cost of medical assistance and medicines is met by the
employer.

353

POLAND

Every employer who employs more than five agricultural workers
entitled to medical assistance and medicines is required to conclude an
agreement with one or more doctors or to subscribe to a collective
agreement concerning the allocation of medical assistance to agricultural workers and their families. In default of such agreement, a
medical adviser must be chosen by the administrative authorities.
Doctors' fees are subject to a tariff established by decree.
Employers are also required to come to an agreement with pharmacists with regard to the supply of medicines prescribed by the
medical practitioners or to purchase medicines on their own account.
4.—Financial Resources.
The employer pays the cost of medical assistance and medicines ;
he is authorised to deduct from the worker's wages one-tenth of the
cost of medical visits and consultations, and medicines supplied to
the worker and members of his family.
The employer also bears the cost of transporting the sick worker to
hospital, or the doctor to the home of the sick worker.
The cost of hospital treatment and maternity assistance is borne
solely by the employer.
5.—Benefits.
Assistance is granted in case of illness requiring medical attention
or entailing working incapacity for the worker ; similar assistance is
granted at childbirth to women employed in agriculture or to the wives
of agricultural labourers.
When a worker falls ill, the employer is required to provide, for not
more than 26 weeks :
(a) Medical assistance and medicines required by the sick person,
and hospital treatment when necessary ;
(b) Means of transport to the hospital for the sick person, or to the
sick person's home for the doctor ;
(c) The part of the remuneration paid in kind ; when this part is
less than half of the whole, the difference must be paid in cash.
The worker's wife and his children under 15 years of age are
entitled to medical (obstetrical) assistance and medicines during not
more than 13 consecutive weeks.
No statistics are available for 1933.

FOURTH PART
HOUSING
1.—Legal Basis.
The legislation referring to cheap dwellings is contained in the
Act of 22 April 1927, as supplemented by the Order of the Ministry of
Finance of 3 November 1927 and the Orders of 6 April 1928, 15 October
1931, and 31 March 1933.
x

a 14641

354

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

2.—Beneficiaries.
The. Act of 1927 sanctions the granting of short-term loans to
promote in particular the building of houses composed of small
apartments and house-building by public utility bodies. Loans are
granted to the various beneficiaries in the following order : communal
authorities, tenants' co-operative societies, welfare institutions,
co-operative societies for the sale of property, private individuals and
societies. In each group persons or institutions building small
dwellings are given priority.
3.—Authorities and Undertakings concerned in Building.
Short- and long-term loan transactions are in the hands of the
Building Fund attached to the Ministry of Finance and are administered
by the National Economy Bank. The principal builders are the State,
municipalities, social insurance institutions, co-operative societies, and
private persons building for their own requirements.
4.—Financing by Public Authorities.
The Building Fund is constituted by the remainder of the so-called
State Economic Fund and various State subsidies; another source of
income is the proceeds of the sale of building credit bills and building
bonds.
Short-term loans granted by the Building Fund may amount to
75, 80 or even 90 per cent, of the building costs, according as the work
is carried out by private enterprise, co-operative societies, or the communes, or tenants' co-operative societies. Building costs do not
include the actual cost of the site and its preparation or of preparing
the plans, or administrative expenses incurred during building
operations.
In order to encourage the building of small family houses and to
attract persons with small amounts of capital, the instructions governing the grant of credit for the year 1933 give priority to borrowers who
are themselves able to cover the greater part of the building costs,
and limit the amount of credit in most cases to 50 per cent, of the
estimates and to 4,000 or 5,000 zloty per house.
Once the building operations are completed, short-term loans are
converted into long-term loans. The interest on short-term and longterm loans is fixed at the uniform rate of 3 per cent, by the Order of
31 March 1933 (instead of 6 per cent, for short-term loans and 4 per
cent, for long-term loans, as previously). Long-term loans are
repayable over a period varying from 25 to 47 years (instead of 25 to
36 years, as previously).
In order to encourage building among persons who can put up at
least 50 per cent, of the capital required to build a small house, a special
society for the building of cheap dwellings has been founded. The
object of this institution, which is called the Workers' Garden City
Society, is to direct and finance the building of dwellings by providing
loans amounting to as much as 100 per cent, of the value of the building
at 2 per cent, interest, repayable in 50 years.

355

POLAND

Newly-built houses are exempted from the State and communal
property t a x , and no income t a x is payable on capital invested in the
buildings. All documents and accounts connected with the buildings
are exempted from s t a m p duty. Credit bills and bonds issued for the
financing of dwelling houses are exempted from the t a x on capital
and interest. Building materials intended for the construction of
dwellings are exempted from municipal dues payable on the transport
of these materials in towns. The exemptions and facilities mentioned
above likewise apply in t h e case of premises built b y institutions
which have not been set u p with a view to profit, a n d those built b y
private persons.
Land belonging to the State is transferred to the communes for
building purposes according as the plans for the extension of a town or
district approved by the State are carried out. The purchase price
of the land thus transferred is based on its estimated value, b u t rebates
are made according to the mode of payment proposed b y the commune,
its building requirements, and the kind of dwellings which it proposes
to build on the land in question.
Land thus transferred is used by the commune for the construction
of its buildings, or leased t o private persons for building purposes.
I n addition, some communes lease municipal land to private persons,
sometimes a t rates considerably lower t h a n the purchase price, or even
free of charge.
I n order to reduce the direct and indirect cost of building, a number of
measures have been taken with regard to the cost of building materials
(special rates for railway transport, pressure on industry, etc.) and
with regard to municipal taxes, building permits, etc., all of which
have been considerably reduced. I n addition, the National Economy
Bank provides persons building their own houses with model plans a t
the lowest possible prices.

5.—Statistics.
The number of dwellings built in 1933 with the help of S t a t e
subsidies is shown in the following table :
Size of dwelling
(kitchen counting as room)
1 room
2 rooms
3
„
4
5
6

„
„
„

Number of
dwellings

or more
Total

Number of
rooms

1,782
2,764
2,885
1,952
628
300

1,782
5,528
8,655
7,808
3,140
1,906

10,311

28,819
Z 2

356

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

The moneys employed in 1933 for the promotion of building were
obtained from the following sources :
zloty

1. State Building Fund :
(a) Remainder of the sum granted for the building
of small houses in 1932
(6) Sum granted for the building of small houses in
1933
(c) Fund for the building of collective houses, etc. ...
2. Fund of the National Economy Bank
3. Fund reserved for building by social insurance institutions
Total
The amounts spent by the various classes of builders
the following table :
Builder

State Fund
Loans 1 Amounts

Communes...
Co-operative societies ...
Institutions
Private
persons
Total

Fund of the
National Economy
Bank
Loans Amounts

450,000
14,000,000
11,374,225
957,700
3,250,000
30,031,925
are shown in

Total
Loans

zloty

Percentage

Amounts

zloty
433,300

1-5

863,300

75
35

7,153,000
3,627,900

24-6
12-4

94,100

4,288

17,860,480

61-5

957,400

4,406

29,074,680

100-0

zloty
433,300

69
35

6,289,400
3,627,900

4,279

17,766,380

4,391

28,116,980

F I F T H PART
FAMILY

ALLOWANCES

1.—Nature of Regulations.
Family allowances are granted in virtue of clauses in collective
agreements (industry, banking, communal undertakings), or under
the rules issued b y the management of the undertaking (State
monopolies), or in pursuance of legal provisions.
2.—Scope.
Family allowances are granted in coal mines (collective agreements
of 15 November 1929 for Upper Silesia and 19 J u n e 1929 for the
Dombrowa and Cracow coalfields), certain other branches of industry,
various public utility undertakings in large towns, and banks.
3.—Persons or Institutions undertaking Payment.
Family allowances are paid a t the employer's expense,

POLAND

357

4.—Conditions of Allocation and Amount.1
Coal Mines
The system of family allowances varies in the different coalfields.
In Upper Silesia, allowances are granted for each day's work and
for all holidays mentioned in the collective agreement. There are
two varieties : household allowances and children's allowances.
Household allowances are granted to married workers and to
divorced persons and widows who can prove that they live in a flat
and have their own household. Unmarried persons contributing
towards the maintenance of their families are also entitled to allowances.
The household allowance amounts to 0-18 zloty a day.
The children's allowance is granted for each child under 14 years
of age. In the case of illegitimate children not living with their
parents, the allowance is granted only if the father is legally bound to
support the child, and if the mother receives no such allowance.
Adopted children and stepchildren are regarded as the worker's own
children. The allowance amounts to 0-28 zloty a day for each child.
In the Dombrowa and Cracow coalfields the household allowance
is granted in the form of a bonus for regular attendance. In the case
of unmarried workers, the bonus amounts in the Dombrowa coalfield
to 6 per cent., and in the Cracow coalfield to 5 per cent, of the actual
weekly earnings. Married workers, widows, or widowers, with one
child receive a 12 per cent, bonus in the Dombrowa, and a 10 per cent.
bonus in the Cracow coalfield ; married workers with two or three
children, a 19 per cent, bonus in the Dombrowa, and a 17 per cent, bonus
in the Cracow coalfield; married workers with four or more children
receive a 29 per cent, bonus in the Dombrowa, and a 25 per cent.
bonus in the Cracow coalfield. The increased bonus is granted only
in respect of the worker's own children under 15 years of age.
Workers who have absented themselves from their work without a
good reason for more than two working days a month lose their rights
to this bonus. Illness of the worker, accidents to near relatives, and
regular holidays are recognised as good and sufficient reason for
absence from work.
In addition to the cash allowance, a coal allowance varying with the
size of the family is granted. Instead of coal, the mine management
may give the workers an allowance corresponding to the current sale
price of coal. Thus, in Upper Silesia, workers receive the following
quantities of free coal :
(a) Married workers such as watchmen, woodmen, carpenters,
hewers, and certain other skilled workers : 140 quintals.
(6) All other married men : 120 quintals.
If besides the head of the household, the family includes other
persons of between 16 and 21 years of age who work in the same mine
and five under the same roof, the head of the household receives an
extra 20 quintals for each such person, provided that the total allowance
for the family does not exceed 160 quintals.
1

The following information is given by way of example.

35*

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Workers who contribute towards the maintenance of their families
receive 80 quintals.
Divorced workers and widowers are regarded as married workers
if they can prove that they have set up their household in their own
house or in rented premises.
Married workers who live in a hostel receive three-quarters of the
amount of coal received by a married worker of the same group.
For each day lost without good reason the coal allowance is
reduced by
^
In the Dombrowa and Cracow coalfields, married or widowed
workers of the higher categories, with children under 15 years of age
dependent on them, receive 60 quintals of coal a year ; workers in other
categories receive 48 quintals. Widows with children under 15 years
dependent on them receive 40 quintals.
Petroleum Indiistry
Under the Bitkow-Boryslaw-Krosno agreement, married workers
receive double the lodging, heating and lighting allowances granted
to single workers.
Lead and Zinc Mines in Upper Silesia
Family allowances, which are granted under conditions similar to
those in coal mines, include a household allowance of 0-17 zloty a day,
and an allowance for children under 14 years of age, which amounts to
0-28 zloty a day for each child.
To the cash allowance is added a coal allowance varying with the
size of the family.
Potassium Mines
Family allowances are granted in the mines of Kalusz and Stebnik
in the form of a bonus for regular attendance. This bonus, which is
added to the monthly earnings, amounts to 15 per cent, for unmarried
persons, 20 per cent, for married persons, widows and widowers with
one dependent child, 25 per cent, for those with two or three children,
and 30 per cent, for those with four or more children. The increased
bonus is granted only in respect of the worker's own children under
15 years of age.
The coal allowance is 34 quintals a year (17 quintals in the case of
unmarried persons). Provision is also made for a rent allowance.
Salt Mines (State Monopoly)
The family allowance is granted at Wieliczka, Bochnia, Bolechow,
Dolina, Wrobrobyez, Kosow and Lack in the form of a bonus for
regular attendance ; it amounts to 5-25 per cent, of the basic earnings,
according to the size of the family.
In the salt mines of Inowroclaw, the allowance is granted in the form
of a supplementary payment of 0 • 02 zloty for each hour's work.
Cement Works
The collective agreement provides for a rent allowance of 4 to 10
zloty in the different works, a school allowance of 10 to 15 zloty a
quarter, and a coal allowance.

POLAND

359

Metal Industry
In the province of Poznan, the hourly wage rate of married workers
is equal to that of workers in the highest wage class.
Chemical Industry
The various works grant family allowances, including rent, heating
and lighting allowances, a coal allowance, a school allowance, and a
children's allowance.
In the chemical works of Upper Silesia, the same system of
allowances is practised as in the iron foundries.
Paper Industry
Several factories grant rent, heating and lighting allowances.
Food Industry
The sugar factories grant 8 kg. of sugar to married workers, besides
giving a school allowance.
In sugar refineries in the Western Provinces, workers with two or
more children under 14 years of age receive an extra allowance of
0-2 zloty an hour, widows receiving an extra 0-8 zloty.
Tobacco Works ; Distilleries
Workers, both men and women, receive an allowance of 0 • 5 zloty
a day for each child, legitimate or otherwise, under 16 years of age.
The payment of the allowance may be continued until 24 years of
age, in order to facilitate the children's education.
Communal Public Utility Undertakings
Public utility undertakings in the large towns sometimes provide
in the contract of employment for family allowances for their workers ;
as a rule, similar measures are adopted with regard to administrative
staff.
Salaried Employees of the Mining and Metal Industries
The collective agreement for salaried employees (intellectual
workers) in undertakings belonging to the Federation of Employers
in the Mining and Metal Industry of Upper Silesia states that salaries
are to be increased by : (a) a household allowance ; (b) a children's
allowance.
AH married employees and all employees over 21 years of age who
contribute towards the support of their families are entitled t o a
household allowance of 13 • 15 zloty a month. The children's allowance
is 15-25 zloty a month in respect of each child of under 14 years of
age, the payment of the allowance being continued until 18 years of
age if the child continues its studies, and does not receive an apprentice's minimum wage during the first year of apprenticeship. Employees
are also entitled to free living quarters or a rent allowance, and a coal
allowance.

360

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Banks
The agreement concluded in 1928 between the branches of the
principal banks of Katowice and the Salaried Employees Union
contains provisions relating to the payment of household and children's
allowances to the lower grade staff. Household allowances are
granted to married, divorced or widowed salaried employees or workers
with their own household. The children's allowance is payable to
salaried employees and workers in respect of each legitimate child,
and each child considered as such, who is under 18 years of age.
Legitimate stepchildren living in the worker's household and entirely
dependent on him are eligible for the allowance. The allowance is
suspended at the child's fourteenth birthday if the wage earned by the
child exceeds the amount of the allowance.
5.—Statistics.
The following information for 1933 refers only to specified
industries and to manual workers.
Iron
foundries

Zinc
foundries

71,524

26,522

4,217

8,794

1,937

2,214

61,548

21,812

3,226

4,819

2,179

zloty
10,744,971

zloty
1,809,697

zloty
443,060

zloty
1,190,540

814
approx.
zloty
232,369

6,597,398

1,321,807

326,471

Coal
mines
N u m b e r of w o r k e r s
e m p l o y e d in u n d e r takings
granting
family allowances
N u m b e r of w o r k e r s
in
receipt
of
family allowances
Cost
of
allowances
Value
of
allowances
1

family

Tobacco .
monopoly

Alcohol
Salt
monopoly monopoly

zloty
616,780

coal
212,440'

Value of coal and salt allowances.

SIXTH PABT
HOLIDAYS W I T H PAY
1.—Legal Basis.
The right of every worker to an annual holiday with pay is recognised by the Act of 16 May 1922.
2.—Scope.
Annual holidays with pay are granted to all persons employed
under a contract of service in industry, mines, commerce, offices,
communication and transport undertakings, hospitals, philanthropic
and public utility institutions and all other undertakings even if not
run on industrial lines, if a class of wage-earner similar to the classes

POLAND

361

mentioned above is employed. Holidays are not granted to wageearners in seasonal undertakings operating for less than 10 months in
the year or in craft undertakings employing not more than four workers.
3.—Length of Holidays.
The minimum period of service required is six months for intellectual
workers (including salaried employees in commerce, industry, and
offices), and one year for manual workers. Intellectual workers are
entitled to a fortnight's continuous holiday after six months' service
and to one month's continuous holiday after one year's service. For
manual workers, the length of the holiday due after one year's continuous work in a given undertaking is fixed at eight days. After three
years' work, the length of the holiday is increased to 15 days.
Young persons under 18 years of age are entitled to a fortnight's
continuous holiday; this also applies to apprentices to handicrafts
and other trades, including those in undertakings employing not more
than four workers.
Every worker on holiday is entitled to his ordinary pay for the
whole of the holiday period. If he works under contract or piece
rates, his remuneration for the holiday period is calculated on the basis
of his average remuneration during the three months preceding the
holiday. The remuneration corresponding to the holiday period is
paid in arrear, unless some other mode of payment has been laid
down by agreement.
Prior to the extension of the Polish legislation to Upper Silesia,
holidays with pay were regulated in that part of Poland by the
provisions of collective agreements. Thus, the collective agreement
of 15 November 1929 in force in coal mines, coke and briquet works,
provides for the following holidays : for the workers as a whole,
three days after one year's service ; for each extra year of service the
holiday is prolonged by one day up to a maximum of nine days after
seven years' service. Underground workers receive the same holidays,
but after ten years' service they receive an extra day for each period
of five years, up to a maximum of 12 days after 20 years' service.
During the holiday period the worker is entitled to his ordinary
pay, plus family allowances, whether he is paid by the day or by the
piece.
The collective agreement in force in 1930 in iron foundries provides
for holidays with pay after one year's continuous service. The
length of the holiday varies with the age of the worker as follows :
Age

L e n g t h of h o l i d a y
in working days

17-2X

21-23

23-25

25-27

27-30

30-35

35 and
over

When on holiday, workers paid by the day receive their ordinary
pay, while those paid by the piece receive wages corresponding to
the average pay earned during the last few months preceding the

362

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

beginning of the holiday period. There are similar provisions relating
to annual holidays with pay in the collective agreements in force in
zinc foundries.
The collective agreement in force for salaried employees (intellectual
workers), concluded with the Association of Employers in the Mining
and Metal Industry of Upper Silesia, grants holidays with pay to all
salaried employees after one year's continuous service, including six
months with the same employer. After one, two and three years of
apprenticeship, apprentices receive paid holidays of 12, 10 and 8
working days. Salaried employees under 21 years of age are entitled
to a holiday of 10 working days, those over 21 years of age to 12 working
days increased by one day for each year of service, up to a maximum
of 18 days. Salaried employees over 40 years of age are entitled
to a holiday of 24 working days. According to the agreement, salaries
may not be reduced during the holiday period.
The collective agreement for the chemical industry makes provision for the following holidays :
After one year's service:
for workers of
from 17 to 19 years
., 21 „ 23
„
„ 23 „ 25
„
27
>. 25
„ 27 „ 30
„
» 30 „ 35
„
35 and over

3 days' holiday
4
5
6
7
8 »>
it
9

The agreement signed on 30 June 1933 between the Polish Union
of Commercial Companies and the Union of Commercial Companies
of the Province of Silesia on the one hand and the salaried employees'
organisations on the other contain the following stipulations with
regard to holidays :
After one year's apprenticeship...
,,
2 years'
„
3
„
„

10 days' holiday
8
„
8
„

Workers
TJp to 21 years' service .
After 21
25
30
35

8 days' holiday
12
„
16 „
20
„
23
„

The Act of 16 May 1922 relating to holidays with pay for wageearners in industry and commerce was amended by an Order of
25 October 1933, the revised version of the Act coming into force on
1 January 1934 for the whole of Poland with the exception of the
Province of Silesia. By an Upper Silesian law of 26 March 1935,
the amended Act was extended to cover the Province of Silesia. The
new provisions introduced in the Act state that throughout the holiday
period the worker must receive the wages he would have been paid.
had he remained in employment.

3G3

POLAND

I n case of national or economic necessity, the Minister of Social
Welfare, in conjunction with the Minister of Commerce a n d Industry
and after consulting the employers' and workers' organisations
concerned, may suspend by the issue of Decrees the application of the
provisions of the Act for a given period not exceeding one year and
authorise exceptions to the clause which requires t h a t as a general
rule a t least 50 per cent, of t h e total number of persons employed in
a given enterprise are to be given holidays between 1 May and
30 September. The Decrees referred to m a y cover given branches of
labour or classes of undertakings and m a y apply to t h e whole of
Polish territory or only to certain administrative areas.
A Decree issued by the President of the Republic on 25 October
1933 relating to conditions of work of dockers in the port of Gdynia,
which came into operation on 1 April 1934, introduced a number of
provisions concerning holidays with pay. Dockers of t h e port of
Gdynia who have been employed in the port for not less t h a n 200 days
during the past year are entitled to holidays with p a y a t the rate of
three days a year during the first three years a n d six days a year after
three years' service.
Again, the Code of Obligations makes provision for holidays with
pay for workers who are not covered b y the legislation in force a n d
for whom the services rendered t o their employer are their main
source of subsistence.
STATISTICS FOB

Total

1933

Number
of Number
of
workers
days' holiday
employed
with pay
in thousands
725
8,007

Cost of holidays with pay
In millions of
zloty
62-7

A.—Workers (Total)

541

3,211

17-1

1. Large and average sized
manufacturing
establishments
2. Small-scale industry...
3. Mining industry
4. Metal working industry
B.—Salaried employees ...

340
79
89
33
184

1,759
243
881
328
4,796

8-1
0-9
5-6
2-5
45-6

Addendum to 1.
(Large and average sized
establishments. )
Total
Minerals
Metals ...
Chemical
Textile
Paper ...
Hides and skins
Wood
Food and drink
Clothing
Building
Printing

manufacturing
340

1,759

30
49
29
115
11
5
30
45
10
8
8

45
260
229
659
89
26
69
277
34
18
53

PORTUGAL
SUMMARY
PAGE

F I R S T PART : Statistics of Population

SECOND PART : Social Insurance

I.—Workmen's Compensation
II.—Social Insurance in the Corporative System
III.—Voluntary Social Insurance
THIRD PART : Social

Assistance

I.—Unemployment Relief
II.—Shipowners' Liability towards Sick and
Injured Seamen

366
366
366
368
370
372
372
373

FOURTH PART : Housing

374

FrFTH PART : Holidays with Pay

377

366

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

FIRST PART

STATISTICS OF POPULATION
Total population of Portugal and the adjacent islands
(Census of 1 December 1930)

6,825,883

OCCUPIED POPULATION CLASSIFIED BY FORM OF EMPLOYMENT AT
1 D E C E M B E R 1930

Public forces ...
...
...
...
...
National and municipal administrative services
Private employment ...
...
...
...
Independent work
Domestic work...
...
...
...
...

...
...
...

...

Total

55,665
147,546
1,628,173
1,002,076
1,169,501
4,002,961

OCCUPIED POPULATION CLASSIFIED BY B R A N C H OF ECONOMIC
ACTIVITY AT 1 D E C E M B E R 1930

Agriculture
...
...
Shipping and fishing ...
Mines and chemical industry ...
Building
Manufacturing industries
Eood and clothing
Transport
Hotel industry ...
Other industries
Commerce and banking
Liberal professions •
Miscellaneous occupations
Domestic servants
Public health and education ...

1,836,580
67,393
25,132
239,186
162,807
216,592
100,119
22,107
15.544
193,610
15,544
197,592
253,305
29,781

SECOND PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
Employers' liability in respect of industrial accidents is governed
by Act No. 83 of 24 July 1913, as amended by Decree No. 5637 of
10 May 1919.
2.—Scope.
Every employed person without exception, irrespective of the
method of remuneration, is entitled to compensation.
3.—Administration.
Insurance is optional. Employers may cover themselves by in-,
suring with a mutual insurance association or with an insurance
company working under the supervision of the National Labour and

PORTUGAL

367

Provident Institution. Employers who are not insured must, in the
event of death or permanent incapacity following an accident to a
person in their employment, deposit the capitalised value of the pension
with the Institution, which is responsible for the payment of pensions.
Disputes are dealt with by the labour courts that exist in each
department of the country.
4.—Financial Resources.
The expenses arising out of compensation for industrial accidents
and occupational diseases are borne solely by the employer.
5.—Benefits.
Industrial accidents are taken to mean any external or internal
injury or any nervous or psychic disturbance brought about by some
sudden and violent external cause, occurring in the course of employment.
The following are deemed to be occupational diseases : poisoning
by lead or mercury ; anthrax infection.
(a) Benefits in kind.
The employer pays the cost of medical or hospital treatment and
the cost of drugs and any other therapeutic measures required for the
treatment of the injured person.
(b) Cash benefits.
1. Pensions are calculated in accordance with the basic wage of
the worker—i.e. his total annual remuneration up to 700 escudos,
and half his annual remuneration beyond that figure.
2. In case of temporary incapacity, the worker is entitled, as from
the date of the accident, to a daily allowance equal to two-thirds of
his wage.
3. In the event of permanent total incapacity, he is entitled to a
pension equal to two-thirds of his basic wage.
4. In the event of permanent partial incapacity, he is entitled to
a pension equal to half the reduction in his basic wage resulting from
his infirmity.
5. In the event of death, the survivors are entitled to pensions
equal to the following percentages of the basic wage :
(i) 20 per cent, to the widow, so long as she does not remarry ;
if she remarries, a lump sum equal to three annual instalments
of the pension ;
(ii) 15, 25, 35 or 45 per cent, in respect of children under the
age of 14 years, according as there are only one, two, three or
four or more children ;
(iii) 20 per cent, for each full orphan, but not more than GO per
cent, in all ;
(iv) in the absence of a widow or children. 10 per cent, for each
ascendant or child under the age of 14 years maintained by
the deceased, but not more than 40 per cent, in all.

368

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6. The employer must pay the funeral expenses, up to 15 times the
daily wage.
6.—Statistics.
Number of insurance policies in force in 1933 ...
...
Sum total of wages insured in 1933 (millions of escudos)
Number of beneficiaries in 1933 :
(a) Permanent incapacity or death ...
...
...
(6) Temporary incapacity
...
...
...
...

...
...

41,333
790

...
...

5,771
63,274

INCOME AND E X P E N D I T U R E OF INSURANCE COMPANIES I N

1933

(millions of escudos)
INCOME

Premiums paid by employers

EXPENDITURE

...

Benefits for temporary incapacity
Permanent incapacity :
Pensions
...
...
...
Reserves
...
...
...

13
2
22

H.—Social Insurance in the Corporative System
Legal Basis.
On 23 September 1933 several Decrees were promulgated as a basis
for the corporative organisation of every branch of economic activity.
Provision is made for the foundation of social insurance institutions
within the corporations that are being set up for every type of industry
and trade, and also for the creation of a network of " people's
institutes " to cover the social risks of the agricultural population.
These Decrees were the Labour Code (Decree No. 23048) ; Employers'
associations (No. 23049); Trade unions (No. 23050); People's
institutes (No. 23051); National Labour and Provident Institution
(No. 23053).
A.—CORPORATIVE INSURANCE FUNDS

1.—Scope.
Insurance is compulsory for all the members of the trade unions
which, in pursuance of collective agreements entered into with the
appropriate employers' associations, have set up insurance funds.
2.—Administration.
The corporative bodies are responsible for the organisation of
insurance funds.
The trade unions must collaborate with the employers' associations
in setting up funds, both parties sharing in the management of the
institutions.
The National Labour and Provident Institution supervises the
funds.
3.—Financial Resources.
The resources of the insurance funds come from contributions paid
by the employers and the workers at rates fixed by collective agreement
and approved by the Institution.

PORTUGAL

369

4.—Benefits.
The extent of the risks covered and the rates of benefit depend on
the economic possibilities of the trade unions. The various branches
of insurance—against sickness, invalidity, unemployment and old
age—will be introduced gradually as circumstances permit.
5.—Statistics.
As the legislation was promulgated on 23 September 1933 no
statistics of its application can be given for the few remaining months
of that year.
B.—PEOPLE'S

INSTITUTES

1.—Scope.
All persons of Portuguese nationality resident in a parish are
entitled to become full members of the people's institute for that
parish.
Rural landowners are founding members of the institute for thenparish. Landowners whose social situation is the same as that of
rural workers are obliged to become full members.
2.—Administration.
People's institutes, which are intended to educate the people and
improve living conditions as well as to promote insurance, may be set
up, one in each rural parish, on the initiative of a group of individuals,
by the parish council or, ex officio, by the National Labour and Provident
Institution.
Every people's institute must establish a mutual benefit society
for its full members, provided the latter number riot less than 100;
this society is subject to the provisions of Decree No. 19281 of
29 January 1931 concerning mutual benefit societies.
The institute and the benefit society are managed by the general
meeting of full members who are heads of families and by the managing
committee it appoints.
The institutes are supervised by the National Labour and Provident
Institution.
3.—Financial Resources.
The resources of the people's institutes come from contributions
paid by the full members and the founding members and, possibly,
State grants.
The contribution for full members is 1 escudo a month, and that
for founding members not less than 5 escudos a month. The State
endows every institute with a single initial grant of 4,000 escudos.
4.—Benefits.
The mutual benefit societies of the people's institutes may engage
in insurance against sickness, unemployment, invalidity and old age.
They may also set up dispensaries, crèches, children's homes and homes
for the aged, in accordance with local possibilities.
X

G 14641

370

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

They are also responsible for the local protection of health, especially
against tuberculosis, and must use all the means of propaganda at
their disposal for this purpose.
5.—Statistics.
As the legislation was promulgated on 23 September 1933, no
statistics of its application for the few remaining months of the year
can be given.

HI.-—Voluntary Social Insurance
1.—Legal Basis.
The legal status of mutual aid societies is based on Decree No.
19281 of 29 January 1931 and the pertinent administrative regulations
(Decree No. 20944 of 27 February 1932), which replaced the Decree
of 2 October 1896.
2.—Scope.
Mutual aid societies may be open to men and women alike or may
be restricted to members of one sex, as prescribed by the rules.
Married women do not require the permission of their husbands to
become members, nor do persons over the age of 15 years require the
permission of their parents or guardians.
No candidate can be admitted until it is shown by medical
examination that he is not suffering from any chronic disease; this
provision does not apply in the case of old-age pensions insurance.
3.—Administration.
A mutual aid society may take the form of a fund with no special
occupational character, or of a private fund for the staff of an undertaking or establishment, or of a fund administered by a trade union.
As a general rule, the minimum membership for such funds is
1,000 persons in Lisbon and Oporto, 500 in the chief town of a department, and 300 in other places.
All mutual aid societies are strictly and constantly supervised by
the National Labour and Provident Institution.
4.—Financial Resources.
The expenses of the mutual aid societies are covered by the
contributions of members, possibly with the help of grants from the
public authorities.
The Decree contains scales of contributions for the various classes
of benefits, but other scales may be adopted provided they are
actuarially sound.
The societies may receive assistance out of public funds in the event
of epidemics or other public calamities ; they also receive such grants
as the municipal or other administrative authorities normally include
in their budgets for this purpose.

PORTUGAL

371

They are exempt from the following taxes :
(i) Taxes and stamp duty on lawsuits ;
(ii) Stamp duty on account books and on receipts for contributions and benefits ;
(iii) Duties and taxes on legacies, gifts or transfers of property
of all kinds used for the working of the society ;
(iv) Land tax on property used for the work of the society ;
(v) Taxes on invested capital and on pharmacies supplying drugs
to members.
5. —Benefits.
The mutual aid societies may have any or all of the following aims :
(i) To guarantee their members medical and surgical attention,
drugs, cash benefits, spa treatment, cost of convalescence in
the country, etc. ;
(ii) To grant, separately or simultaneously, old-age or invalidity
pensions and unemployment benefit ;
(iii) To grant survivors' pensions ;
(iv) To pay funeral expenses ;
(v) To maintain, either alone or in collaboration with other
societies, rest houses, sanatoria, maternity homes, crèches and
orphanages ;
(vi) To found, either alone or in collaboration with other societies,
pharmacies where they may be necessary ;
(vii) Any other aims approved by the public authorities.
Sickness benefit may be paid for periods of 365 days, with an
interval of six months between any two such periods. When a member
is ill more than once during the year, the number of days of each
illness are added together for calculating the period of benefit.
Members who draw benefit for 16 months in the course of two consecutive years must wait 8 months before becoming again entitled to
benefit. No sickness benefit is paid in respect of chronic diseases.
The societies may also provide benefits for the families of their
members.
6.—Statistics.
Number of mutual aid societies in 1933
Number of members in 1933
INCOME AND E X P E N D I T U R E

...

476
482,739

or MUTUAL A I D SOCIETIES I N

1933

(in thousands of escudos)
INCOME

Members' contributions
Other income (interest, income
from property, gifts, etc.)

Total

EXPENDITURE

34,283
21,864

56,147

Benefits in kind
Cash benefits :
S ickness • benefit
Invalidity pensions
Old-age pensions ...
Survivors' pensions
Funeral benefit
Unemployment benefit
Cost of administration
Total

10,145

1,742
1,005
549
15,300
2,082
122
7,849

38,794

Aa 2

372

INTERNATIONAL SURVEY OF SOCIAL, SERVICES, 1933

THIRD

PART

SOCIAL ASSISTANCE
I.—Unemployment Relief
1.—Legal Basis.
Decree No. 21699 of 19 September 1932, supplemented by
Decrees No. 22120 of 10 January 1933 and No. 22113 of 13 January
1933 and Legislative Decree No. 23279 of 30 November 1933.
2.—Beneficiaries.
In principle, all employed persons, with the exception of seasonal
workers, may receive relief. Foreign workers may receive relief on
condition of reciprocity and provided they have been resident in
Portugal for more than three years before the scheme came into force.
3.—^Administration.
The central body responsible for the administration of relief is the
Unemployment Commission attached to the Ministry of Public Works
and Communications. It has a central office in Lisbon and a branch
office in every chief town of a district. Its duties include : (a) the
management of the unemployment fund; (b) the payment of relief
and the placing of unemployed persons; (c) advising the authorities
concerned as to the districts which should be given preference in
carrying out public works, and as to the most suitable times for such
works.
District boards, under the chairmanship of the civil governor of
each district, collaborate with the Commission and are responsible for
relief and placing in cases not dealt with by the latter.
4.—Financial Resources.
The resources of the unemployment fund are obtained from :
(a) contributions paid by undertakings at the rate of one per cent, of
the amount paid in wages and remuneration of all kinds ; exemption
from this contribution is granted to undertakings run by or working
for the State, agricultural undertakings, undertakings which are
bound to constitute employees' funds to alleviate any exceptional
unemployment, and undertakings where payment for the services
supplied is made in accordance with scales laid down or approved by
the Government and which during the last two years have not yielded
a regular return on capital ; (b) a deduction of two per cent, from the
remuneration earned by any person working for a private employer
or for the State, with the exception of agricultural workers, persons
employed for less than four days a week and pensioners ; (c) an increase
of two per cent, in the property tax; (d) grants that may be made by
the local authorities, gifts, etc.

373

PORTUGAL

5.—Benefits.
The risk covered is that of involuntary unemployment. Except
in the case of those who are unfit for work, relief takes the form of
wage subsidies, in exchange for which the unemployed are required
to work for the public services, in public works or in private undertakings. Private undertakings may apply to the Commission for
permission to engage unemployed workers for not less than one month,
or unemployed salaried employees for not less than three months.
The application must indicate the number of workers employed
permanently or temporarily by the undertaking since 1 January
1932, stating their grade, wages and hours worked. In the light of
this information the Commission fixes the normal monthly number of
man-days (8-hour days) worked by the workers or salaried employees
of the undertaking in question. If this number does not exceed the
total number of man-days actually being worked at the date of the
application, the Commission refunds monthly to the undertaking, by
way of compensation, 50 per cent, of the wages or salaries of the unemployed persons it has engaged.
In the case of unemployed persons engaged by the public services,
75 per cent, of their remuneration is paid by the Commission and the
rest by the department concerned. The wages of unemployed persons
engaged for public works are paid either by the service concerned, or
by the Unemployment Commission or jointly by the two bodies in
varying proportions. The wages and salaries paid to unemployed
persons engaged by private undertakings or for public works are at
the standard rates. In the case of agricultural workers, a fraction not
exceeding 25 per cent, may be paid in kind. An unemployed person
who, without valid reason, throws up the job assigned to him is
excluded from the benefits of the scheme in future. The Commission
pays the cost of transport of the unemployed persons from their place
of residence to their place of employment.
6.—Statistics.
The unemployment relief scheme was not working completely
until December 1933, but the following contributions were collected
in the course of that year (in thousands of escudos) :
Undertakings' contributions
Workers'contributions...
Total

...
...

24,792
12,396
37,188

H.—Shipowners' Liability towards Sick and Injured Seamen
1.—Legal Basis.
The shipowners' obligations towards seamen in the event of sickness,
accident or death are laid down in the Commercial Code of 23 August
1888. The definition of " the crew " is given in Decree No. 15335 of
31 March 1928.

374

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

2.—Beneficiaries.
The legislation applies to the members of the crew of any Portuguese vessel. The crew comprises : (i) the master ; (ii) the officers—
i.e. mates, medical officers, engineers, wireless operators, pursers and
certificated apprentices; (iii) petty officers—i.e. boatswains, carpenters, sick-bay attendants, stewards and musicians ; (iv) lower ratings—
i.e. all other members of the crew, and likewise persons composing
fishing crews.
3.—Benefits.
The legislation covers the risks of sickness and death during the
voyage and of wounds or injury in the service of the vessel. The
shipowner is released from all obligation if the disease, wound or injury
is due to the fault of the member of the crew in question.
(a) Benefits in Mnd.
The shipowner is responsible for the cost of medical attention and
hospital treatment while the member of the crew is ashore, for a period
of four months from the date on which he was put ashore.
(b) Cash benefls.
1. The member of the crew is entitled to his full pay during the
period of incapacity up to four months from the date on which he was
put ashore.
2. When a member of the crew is put ashore during the voyage on
account of illness or injury, he must be repatriated, at the expense
of the shipowner, to his port of registration.
3. The heirs of a member of the crew who dies are entitled to the
whole or part of his pay. If he was engaged by the month, his pay
is due up to the date of death. If he was engaged for the duration of
the voyage, his full pay or half of it is due according as death occurred
on the outward or the homeward journey. If he had a contract for
a share in the profits, his heirs are entitled to his full share if death
occurred after the voyage began.
When a member of the crew has an accident from which he has
not completely recovered when the shipowner's liability expires, he
is covered from that date onwards by the provisions of the workmen's
compensation legislation.

FOURTH PART
HOUSING
1.—Legal Basis.
The methods of promoting the building of cheap dwellings are laid
down in the Decree of 23 September 1933.
2.—Beneficiaries.
There are two classes of economical dwellings : class A, intended
for persons earning up to 20 escudos a day, and class B, intended for

375

PORTUGAL,

persons earning up to 40 escudos a day. The maximum building cost
permitted for houses in the two classes and the rents charged are shown
in the following table (in escudos) :
Glass A.
Total cost, including site
Monthly rent
Class B.
Total cost, including site
Monthly rent

Typo 1

Type 2

Type 3

10,000
80

12,000
90

14,000
100

19,000
160

22,000
180

25,000
200

These cheap houses are intended for civil servants, members of the
armed forces, workers permanently employed by the State, and
members of recognised national trade unions. Persons wishing to
obtain such a house must be between the ages of 20 and 40 years and
in full possession of their civil rights ; their applications must indicate
their total earnings and the composition of the family.
In the case of class A, 75 per cent, of the houses are reserved for
members of recognised trade unions, and 25 per cent, for public
servants. In class B, half the houses are reserved for each group.
3.—Authorities and Undertakings concerned in Building.
The general supervision of the housing scheme is in the hands of
the Department of Public Buildings and Monuments, attached to the
Ministry of Public Works and Communications. A special service
supervises the actual building.
The National Labour and Provident Institution is responsible for
managing and allocating the cheap houses when they are built. This
task is entrusted to a Cheap Housing Department.
There is an Advisory Committee for Cheap Housing under the chairmanship of the secretary of the National Labour and Provident
Institution; the chief of the Cheap Housing Department acts as
secretary. The Committee consists of a delegate of the Ministry of
the Interior, representing the municipal councils, the General Director
of National Buildings and Monuments, and two delegates of recognised
trade unions.
4.—Financing by the Public Authorities.
The initiative in the building of cheap dwellings is taken by the
State, by an administrative authority or by the municipal councils,
which bear 50 per cent, of the total cost, the remainder being obtained
from special appropriations in the national budget. So long as
unemployment is acute, the Ministry of Public Works and Communications arranges for the Government subsidy to pass through the
unemployment fund in the case of houses being built by an
administrative authority or municipal council.
This capital bears interest at not more than 5 per cent., and the
money borrowed by the administrative authorities or municipal
councils from the General Deposit, Credit and Provident Fund also
bears interest at 5 per cent.

376

INTERNATIONAL SCRVEV OF SOCIAL SERVICES, 1933

For each financial year, the Cheap Housing Department places
at the disposal of the Building Service the sums supplied for that year
by the State, the administrative authorities and the municipal councils,
together with private gifts, the income from the rents of houses already
let, and the income from capitalised Government securities (Cheap
Housing Fund).
The houses in class A are built in groups of from 50 to 100 with from
100 to 200 square metres of garden. The maximum price that may be
paid for the land by the Building Service, including the cost of
preparing the ground, is 7-50 escudos per square metre. The houses
in class B are in groups of from 25 to 50 with the same area of garden.
The maximum value per square metre is fixed at 20 escudos. The
administrative authorities or municipal councils may acquire the land
more cheaply, either by agreement or by expropriation.
There are three types of house in each class :
(1) For households with no children the house contains a living
room, one bedroom, kitchen, bathroom and lavatory;
(2) For households with children of one sex only, the house contains
a second (double) bedroom ;
(3) For households with children of both sexes, or with large
families, the house may have two extra bedrooms.
The monthly payments to be made by the householder include :
(a) A fraction equal to the monthly rent, to cover interest and
redemption charges ;
(b) A fraction equal to half the monthly life insurance premiums ;
(c) A fraction equal to 5 per cent, of the sum of the two preceding
fractions, to cover sickness and unemployment insurance ;
(d) A fraction to cover fire insurance.
Redemption is spread over a period of 20 years. The first two
monthly instalments must be paid in advance, on taking possession
of the house ; the remainder fall due in the first week of each month,
except in the event of sudden death, permanent total invalidity, or
temporary incapacity for work due to illness or unemployment. In
the event of death, the life insurance policy covers the amount still to
be paid to acquire ownership of the house. In the event of permanent
total invalidity, the insurance pays the outstanding amount, subject
to an observation period of two years.
In case of incapacity due to illness or unemployment, the normal
redemption period of 20 years is extended by a number of months
equal to the duration of the incapacity, subject to a maximum of
four years.
The Decree lays down the general clauses of the insurance contracts
governing the liability of the various insurance companies—life
insurance, permanent invalidity insurance and fire insurance.
Insurance against sickness and unemployment is effected directly by
the Cheap Housing Department.

PORTUGAL

377

Certain temporary measures have been passed concerning the cities
of Lisbon and Oporto. By Decree of 31 July 1933, the Government
granted 10 million escudos to each city and authorised the municipalities to contract a loan of 10 million with the General Deposit,
Credit and Provident Fund for the erection of cheap houses of class A.
The loans bear interest at 5 per cent., and the municipalities have to
be repaid at 4 per cent, over a period of 20 years reckoned from 1935.

F I F T H PART

HOLIDAYS W I T H PAY
Section 28 of the Rational Labour Code (Decree No. 23048 of
23 September 1933) provides that undertakings must grant annual
holidays with pay, even if of short duration, to their workers.
Section 34 makes it compulsory for collective agreements to contain
provisions on this subject.
As the legislation is of such recent date, no account of the results
of its application for the remainder of 1933 can be given.
It should be noted that commercial employees have for a long time
been granted holidays with pay of from 8 to 30 days, according to
length of service and grade. The same is true of many of the larger
industrial concerns.

••

RUMANIA
SUMMARY
PAGE
FIRST PABT :

Statistics of Population

SECOND P A S T :

Social Insurance
I.—Workers' Social
Accident, Old
Death)

380
Insurance (Sickness,
Age, Invalidity and

380

II.—Invalidity, Old-Age and Widows' and
Orphans' Insurance for Miners
...
III.—Subsidised Benefit Schemes for Staffs of
Public Undertakings
...
...
...
A.—Railway Workers
...
...
B.—Workers
in State Monopoly
Undertakings ...
...
...
C.—Staff of Autonomous Department
of Ports and Waterways
...
THTRD PART

Social Assistance

...

380

...

387
389
389
391
393

...

395

...

395

II.—Shipowners' Liability towards Sick or
Injured Seamen ...
...
...
...

396

I.—Public and Private Social Assistance

FoTJBTH P Ä B T :

Housing

F I F T H PAKT :
SIXTH P A B T :

...

397

Family Allowances

...

399

Holidays with Pay

...

400

380

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1933

FIRST

PART

STATISTICS OF POPULATION
CENSUS OF 29 D E C E M B E R

Total population
Gainfully occupied population (estimated) 1 ...

1930

...

Number and Distribution of Employed

Economic brandies or occupational
groups

Exploitation of the land 2
Extractive industries
Industry ...
Commerce, banking, insurance ...
Transport (including postal, telegraph and telephone services)
Hotels and domestic service
Miscellaneous
Total 3

Administrative
staff
and
skilled
workers
134,700
65,000
322,900
73,700

...

18,052,896
10,347,700 s

Persons

Unskilled
workers

11,100
31,800
2,000

Lower
grade
senice
staff,
domestic
servants,
etc.1
64,000
4,600
27,500
51,900

198,700
80,700
382.200
127,600

Total

124,400
6,600
42,100

22,800
700

10,200
23,800
39,700

157,400
31,100
81,800

769,400

68,400

221,700

1,059,500

i Including the lower-grade service staff of the undertakings covered and domestic servants
employed in households.
2
Including specialised State officials in the relevant services.
3
Excluding public institutions, Army, etc.

SECOND

PART

SOCIAL INSURANCE
I.—Workers' Social Insurance (Sickness, Accident,
Old Age, Invalidity and Death)
1.—Legal Basis.
Social insurance is regulated by the Act of 8 April 1933 unifying
and co-ordinating the provisions for meeting the risks of sickness,
accident, maternity, invalidity and death throughout the country.
Accident insurance is governed by special regulations covering permanent incapacity and death, and applicable to all accidents, whether
arising in connection with employment or not. Old-age insurance is
still governed by the former scheme (Act of 25 January 1912), although
the necessary financial resources are provided for under the new
legislation.
1

Provisional official estimates by the Rumanian Government.
Including members of the family assisting the head of the family in his
business.
2

381

RUMANIA

Miners continue to enjoy special benefits against the payment of a
.special contribution, but only if they were members or pensioners of
a miners' fund on 1 June 1933. All persons entering the service of a
mining undertaking after that date are covered by the general
legislation.
2.—Scope.
In principle insurance is compulsory for all wage earners and
independent workers of small means. It covers workers in public or
private industrial and commercial undertakings whose monthly
wages do not exceed 6,000 lei, handicraftsmen and home workers,
whatever the amount of their earnings, and domestic servants.
Agricultural workers are not covered by the Act, nor are public
servants and workers in public undertakings, who are insured with
special funds set up under a compulsory clause in their regulations.
On the proposal of its governing body and with the approval of
the Council of Ministers, the general meeting of the Central Fund may
extend the scope of compulsory insurance to other categories of
workers.
3.—^Administration.
Insurance against permanent incapacity and death (pensions to
survivors) is administered by the Central Social Insurance Fund
through the medium of territorial-funds or mutual aid funds.
Insurance against temporary incapacity is administered by the
territorial funds or mutual aid funds acting as autonomous bodies.
A Higher Supervisory Board and a Government Commissioner are
responsible for supervising the management of the Central Fund.
4.—Financial Resources.
The financial resources of the social insurance scheme are formed by
contributions from the insured persons and their employers, an extra
contribution payable by the employers alone, a contribution from the
State, and other income from various sources.
These moneys go to form the Common Social Insurance Fund,
which is responsible for meeting the various risks covered by the new
legislation and also the risk of old age.
Contributions.—The contributions are payable by the employer,
who deducts the sum due from the insured person from his wages.
They are fixed according to wage classes and may not exceed 6 per cent.
of the average wage in each class.
The Central Social Insurance Fund has fixed the contributions
payable from 1 June 1933 as follows :
Wage class
1
2
3
4
5

Average
daily
wage

Weekly contribution
Employers

Workers

17
35
62
90
120

3
6
11
15
18

382

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1 9 3 3

Handicraftsmen and home workers (persons working on their own
account) pay the whole of the contribution due for their wage class,
Handicraftsmen are regarded as belonging to the highest wage class
if they employ journeymen, to the second highest if they employ
apprentices, and to the lowest but one if they work alone. All home
workers are regarded as falling into the lowest wage class but one.
The insured persons are hable for contributions up to the age of
65 years. Those who are not incapacitated for work at that age and
fulfil all the conditions as to qualifying period and contributions
required to confer the right to a pension maintain this right until they
become incapacitated without paying any further contributions. The
right to medical attendance and funeral benefit is maintained under the
same conditions.
Extra contribution payable by employers.—The extra contribution
payable exclusively by undertakings employing more than ten persons
(apprentices, workers or salaried employees) is at the rate of 1-2 per
cent, of the wage-bill. This contribution is borne entirely by the
employer and is payable at the same time as the ordinary insurance
contribution.
State contribution.—The State is required to contribute towards
the resources of social insurance by a subsidy of 15 million lei for the
first year of the working of the Act and 80 million lei from 1935
onwards.
5.—Benefits.
The scheme covers sickness, maternity, and also invalidity and
death, irrespective of the cause to which they are due, but the provisions
to meet the risks of incapacity and death differ according to whether
the risk is due to sickness, accident, whether arising out of employment
or not, or an occupational disease. Old-age insurance is still governed
by the conditions prescribed by the former legislation.
(a) Sickness benefits.
In case of sickness the insured person is entitled to benefits in cash
and in kind, and the members of his family living with him to benefits
in kind.
In addition to an allowance to cover funeral expenses, sickness
benefits are granted as follows :
1. Benefits in kind.—The insured person is entitled, from the first
day of sickness until recovery, to medical and surgical attendance
and to the supply of medicines, artificial limbs, dressings and other
medical and surgical appliances.
Medical attendance may be provided as out-patient treatment or in
hospital, or at the consulting room of the insurance doctor, or at the
insured person's home, if he is not in a condition to leave his house.
2. Cash benefit.—The insured person is entitled to cash benefit
while incapacitated for work.
Under the Act on contracts of employment, the employer is bound
to pay the worker the whole amount of his wages for the first seven days
of incapacity for work. The sickness fund begins to pay benefit from
the eighth day at the rate of 50 per cent, of the average wage for the
wage class in which the insured person's contributions were paid.

BUMAKIA

383

Sickness benefit is payable for not more than 26 weeks for the same
illness and for not more than 36 weeks during every period of 12 months
or different illnesses, but this period may be extended to 52 weeks
in exceptional cases.
3. Funeral benefit.—Funeral benefit is payable when the insured
person has paid 26 weekly contributions in the course of the past two
years. The amount varies between 2,000 and 5.000 lei according to
the insured person's wage class.
(b) Maternity benefit.
Insured women who have paid at least 26 weekly contributions
during the 12 months immediately preceding their confinement are
entitled to the following benefits : (i) attendance by a doctor or
midwife, and the necessary medicines and dressings ; (ii) cash benefit
at the rate of 50 per cent, of the average wage for the past 12 months,
payable for 12 weeks, at least six of which must be after confinement.
Nursing mothers are entitled to a special nursing allowance for
six weeks after the maternity benefit ceases to be payable.
At the insured woman's request, the insurance fund may have her
placed in a maternity home. In such cases the maternity benefit is
suppressed or, if the insured woman has dependants to support, reduced
by half.
The wives of insured men are entitled on confinement to the same
benefits as insured women, provided that the husband has paid at
least 52 weekly contributions during the two preceding years.
If the finances of the fund permit, the wives of insured men may also
be paid a cash allowance equal to 50 per cent, of the sickness benefit
due to the husband.
(c) Accident benefits.
In case of accident, whether arising out of employment or not,
every insured person is entitled to (i) medical and surgical attendance
and the supply of all necessary medicines, dressings, artificial limbs,
etc. ; (ii) a cash allowance during the whole period of temporary
incapacity ; (iii) a pension in case of permanent incapacity.
¿ l the case of fatal accidents, his heirs are entitled to (i) funeral
benefit ; (ii) a temporary or life pension.
1. Medical attendance and cash benefit for temporary incapacity.—The
medical attendance and cash benefit due for the whole period of temporary incapacity is governed by the rules applying to sickness benefits.
2. Pensions for permanent incapacity.—For permanent total incapacity the pension is equal to two-thirds of the insured wage. For partial
incapacity of not less than 20 per cent., this pension is reduced
proportionately to the reduction in working capacity. The insured
wage is the average wage on which contributions for the past 12 months
were based.
For incapacity of less than 20 per cent., compensation is payable
in the form of a lump sum at the rate of 100 times the average daily
wage for the 30 days preceding the accident.
For disabled persons who need constant attendance the pension is
at the rate of the full wage.

384

INTERNATIONAL SURVEY/ OF SOCIAL SERVICES, 1933

3. Pensions to survivors.—Pensions are payable to survivors in
accordance with the following rules :
(a) Widow, disabled widower and orphans.—In case of a fatal
accident, the widow of the deceased is entitled to a life pension at the
rate of 20 per cent, of the insured wage. The same pension is payable
to the widower of an insured woman if he is incapable of work.
Legitimate, legitimised or adopted children are entitled to a pension
at the rate of 20 per cent, of the wage for each orphan up to 18 years of
age, provided that the orphans' pensions may not exceed 40 per cent.
of the wage in all. For children who have lost both parents the pension
is at the rate of 30 per cent, and the orphans' pensions may not exceed
60 per cent, in all. The governing body of the Central Fund may
continue payment of the pension up to the age of 21 years in the case
of children who are continuing their education, and without limit of
age in the case of those unable to earn their own living on account of
infirmity.
(6) Ascendants and collaterals.—Pensions to ascendants and collaterals are payable at the rate of 20 per cent, of the insured wage for
each beneficiary, but only if the persons concerned were maintained
by the deceased and, in the case of brothers and sisters, up to the age
of 18 years. These pensions are, moreover, payable only in so far as
the widows' and orphans' pensions together do not amount to
60 per cent, of the wages of the deceased.
4. Funeral benefit.—Funeral benefit at the same rate as under
sickness insurance is due in all cases of death due to accident without
any condition as to the fulfilment of a qualifying period.
(d) Benefits in case of occupational diseases.
The compensation provided for accidents is also payable on account
of occupational diseases due to the continuous use of certain poisonous
substances and resulting in incapacity of more than 6 6 | per cent.
The following is the list of compensable occupational diseases
fixed by the governing body of the Central Social Insurance Fund in
a resolution of 16 December 19331 :
Treatment of ores containing lead,
including the lead-bearing ashes of
zinc works.
Fusion of old zinc and pig lead.
Manufacture of articles of smelted
lead or lead alloys.
Polygraphie industries.
Poisoning by lead, its alloys and com- Manufacture of lead compounds.
pounds, and the direct consequence < Manufacture and repair of accumuof such poisoning.
lators.
Preparation and use of enamels
containing lead.
Polishing with lead shavings or lead
putty.
Painting work involving the preparation or handling of coatings, p u t t y
or colours containing lead pigments.
1
This list was completed by another resolution of the governing body,
approved by the general meetine of the Central Social Insurance Fund in March
1935.

RUMANIA

385

' T r e a t m e n t of mercury ores.
Manufacture of mercury compounds.
Manufacture of measuring and laboratory instruments.
Poisoning by mercury, its amalgams Preparation of raw materials for hatand compounds and the direct c o n making.
sequences of such poisoning.
Gilding by fire.
Use of mercury pumps in the manufacture of incandescent lamps.
Manufacture of fuses of mercury
fulminate.
'Workers in contact with animals
infected by anthrax.
Anthrax infection.
Handling of animal remains.
Loading, unloading and transport of
goods.

(e) Old-age, sickness and survivors' benefits.
1. Old-age pensions.—Old-age pensions are payable in accordance
with the provisions of the 1912 Act, extended to cover the whole
country by the Act of 18 May 1932.
The pension is payable at the age of 65 years.
The award of the pension is conditional on the completion of a
qualifying period of 1,200 paid up weekly contributions.
The annual pension is at a uniform rate of 6,000 lei.
2. Invalidity pensions.1—An insured person whose earning capacity
is reduced by not less than 6 6 | per cent, may claim an invalidity
pension, provided that at least 200 weekly contributions have been
paid on his account.
The validity of the contributions is maintained only if the insured
person pays at least 16 weekly contributions each year.
In the event of an interruption in the payment of contributions,
the insured person can redeem his rights by completing a fresh
qualifying period of 100 weeks, if he had already paid 200 contributions
previously, or 200 weeks if he had not. Rights in course of acquisition
are not affected by interruptions due to sickness, incapacity for which
compensation is paid, or the period of military service.
The annual invalidity pension consists of a basic sum, varying with
the wage-class in which the insured person paid his contributions and
increased by 2 lei for every contribution week beyond 200.
For 1933 the basic sum was fixed at 400 lei a month for insured
persons belonging to the lowest wage class, increasing by 50 lei for
each wage-class up to a maximum of 600 lei in the highest.
Persons drawing invalidity pensions are entitled to free medical
attendance at the dispensaries and pharmacies belonging to the
insurance funds.
3. Benefits in case of death.2—On the death of a pensioner his heirs
are entitled to funeral benefit at the rate of four times the monthly
pension of the deceased and to a temporary reversionary pension.
The reversionary pension is at the rate of 50 per cent, of the pension
of the deceased for the widow, and 33£ per cent, for legitimate,
legitimised or adopted children under 18 years of age.
1
2

Other t h a n invalidity due t o accident.
Other t h a n death due to accident.
x

G 14641

386

INTERNATIONAL

SURVEY O í ' SOCIAL S E R V I C E S ,

1933

The widows' pension is awarded only if the recipient is unable to
earn her Hving and is indigent. The award of the children's pension
is conditional on their need.
The reversionary pension may not exceed the amount of the
pension of the deceased when paid to the widow or widower and
orphans, or § of the pension of the deceased when paid to orphans
alone.
All reversionary pensions are temporary and may be suspended
if the material circumstances of the recipients improve, or if their
working capacity is restored.
6.—Statistics.1
A v e r a g e n u m b e r i n s u r e d i n 1933 : 600,000.
INCOME AND E X P E N D I T U B E FOB

1933-1934

INCOME

EXPENDITURE

1 Apr. 1933- 1 Dec. 193330 Nov. 1933 31 Mar. 1934

Contributions from
insured persons ... 208,364,491 94,218,267
Contributions from
185,788,946 94,218,267
employers
Special contributions
from undertakings
employing
more
than 10 workers ... 49,700,212
33,072,701
Contributions from
public authorities :
7,500,000
1,950,000
(o) State grant ...
12,213,732
(6) Wages
24,427,464
Income from capital. .. 1,745,432
1,133,459
Other resources
28,648,365
506,174,910 236.806,426
Total

1 Apr. 1933- 1 Dec. 193330 Nov. 1933 31 Mar. 1934
Cash benefits
205,794,075 124,527,185
Benefits in kind ... 106,815,587
49,056,033
Extra
optional
343,446
benefits
Costs of administra106,789,935 55,371,671
tion
7,377,834
3,745,169
Other expendituio

Total

427,120,877

232,700,058

DlSTKIBUTION OF BENEFITS
(in lei)

incapacity
Temporary
(sickness)
Temporary
incapacity
(accident)
Permanent
incapacity
(accident)
F a t a l accidents
General invalidity
O l d a g e ...
Death

1 April 193330 November 1933

1 December 193331 March 1934

Benefits

In kind

In cash

in kind

in cash

93,053,787

42,833,190

44,756,033

26,782,536

2,363,752

1,183,053

—
—

12,197,847

—

60,688,221
819,243
90,079,218
2,470,500
6,920,851

—

—
—

19,343,244
635,238
59,567,052
1,434,955
3,769,188

4,300,000

—

1
A s t h e A c t of 8 A p r i l 1933 d i d n o t c o m e i n t o force u n t i l 1 D e c e m b e r of t h a t
year, t h e statistics for the former scheme relate to t h e 8 m o n t h s from 1 April
t o 30 N o v e m b e r 1933, a n d for t h e n e w s c h e m e t o t h e f o u r m o n t h s f r o m 1 D e c e m b e r
1933 t o 31 M a r c h 193-1.

RUMANIA

387

Annual Amount of Pensions Current at End of Financial Tear
Accident pensions
...
...
Invalidity pensions ...
...
Old-age pensions
...
...
W i d o w s ' a n d Orphans'Pensions

(in lei)
...
...
...

...
...
...

Total

80,031,465
149,646,270
3,905,455
12,967,882
246,551,072

H.—Invalidity, Old-Age and Widows' and Orphans'
Insurance for Miners
(Temporary provisions to wind up the scheme in force prior to the
Act of 8 April 1933.)

1.—Legal Basis.
Under the Act of 8 April 1933 the general social insurance scheme
is substituted for the special invalidity, old-age and widows' and
orphans' insurance scheme for miners in Ardeal.
The liquidation of rights acquired under the miners' scheme is
regulated by pro visiona adopted on 16 February 1934, with retroactive
effect from 1 December 1933.
2.—Scope.
The transitional scheme applies exclusively to workers who were
contributing members or pensioners of a miners' fund at 1 June 1933
and to their dependants.
3.—Administration.
The transitional scheme is administered by the Central Social
Insurance Fund.
4.—Financial Resources.
The workers admitted to the transitional scheme are divided into
three classes according to their occupation :
(a) Foremen, supervisors, overmen, skilled miners, etc. ;
(6) Helpers, truck loaders, etc. ;
(c) Labourers, wheelers, watchmen and unskilled workers.
For these persons an extra contribution, borne equally by the
employer and worker, is payable in addition to the contribution to the
general scheme. The rate of the extra contribution is fixed as follows :
1st wage class
2nd wage class
3rd wage class

...
...
...

•-.
...
•••

Monthly
...
...
•••

contributions
74 lei
62 „
49 „

These rates must be revised each year by the governing body of
the Central Social Insurance Fund when drawing up the annual budget.
Insured persons who have paid 1,750 weekly contributions retain
their right to a pension without further payments.
Persons who cease to be liable for compulsory insurance may
continue in voluntary insurance at the same contribution rates.
Bb2

388

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

In the event of an interruption in the payment of contributions,
the validity of the paid up contributions is maintained only if the
insured person pays at least 16 weekly contributions each year. Failing fulfilment of this condition, the rights in course of acquisition may
be redeemed by the completion of a fresh qualifying period of 100 weeks
if 200 weekly contributions had already been paid and 200 weeks if
they had not.
Interruptions due to sickness, incapacity for work for which
compensation is paid, and the period of military service do not affect
the validity of contributions.
5.—Benefits.
The transitional scheme covers the risks of old age, invalidity and
death for insured persons who have contributed for at least 8 years.
Benefits due under the miners' scheme are payable by the liquidation
fund only in so far as they exceed the amount of the pensions payable
under the general scheme. If rights have been acquired simultaneously
under the general scheme and under the special miners' scheme, only
the highest pension is paid, the liquidation fund making up any difference between the pension payable under the general scheme and that
payable under the miners' scheme.
(a) Old-age pensions.
The old-age pension is awarded at the age of 65 years for surface
workers and 60 years for underground workers.
The maximum pension payable after 35 contribution years is as
follows :
1st wage class
2nd wage class
3rd wage class

...
...
...

Monthly pensions
1,200 lei
1,000 ,,
800 „

The minimum pension payable after 8 contribution years is equal
to 40 per cent, of the maximum rates given above. The pension is
increased by 2 per cent, for every additional contribution year up to
29 and by 3 per cent, for every year from the 29th until the maximum
is reached.
(b) Invalidity pensions.
An invalidity pension is payable to insured persons whose earning
capacity is reduced by at least 6 6 | per cent. The pension is at the
same rate as the old-age pension.
(c) Survivors' pensions.
The widows' pension is equal to 50 per cent, of the invalidity
pension to which the insured person was or would have been entitled.
Children's pensions are payable up to the age of 16 years at the
rate of 20 per cent, of the widows' pension for children who have lost
one parent and 40 per cent, for children who have lost both parents.
Orphans' pensions may be continued after the age of 16 years in the
case of children who are unable to earn their living on account of
infirmity.
The total amount of the pensions paid to survivors may not
exceed the pension which was or would have been payable to the
deceased.

389

RUMANIA

(d) Funeral benefit.
The funeral benefit payable under miners' insurance varies between
3,000 and 4,000 lei according to the occupational category of the
deceased.
(e) Medical benefits.
Pensioners and members of their family are entitled to medical
attendance and medicines in the districts in which the social insurance
funds have a medical organisation. Pensioners are entitled to hospital
treatment for not more than 30 days in social insurance hospitals.
6.—Statistics.
Position of Fund at 1 March 1934 :
Number
1st
2nd
3rd

insured :
class ...
class ...
class ...

11,854
6,901
5,095
Total

Monthly contributions :
Insured persons ...
Employers

23,850
1,554,663
1.554,663

Total
Number of pensioners :
Pensioners ...
Widows
Orphans

3,109,326
5,960
6,092
2,061

Total

14,113
7,485,028 lei

llonthly total of current pensions

m.—Subsidised Benefit Schemes for Staffs of
Public Undertakings
A.—RAILWAY

WOEKEBS

1.—Legal Basis.
The scheme is based on the Act of 3 May 1930, to set up an Autonomous Provident and Relief Fund for Railway Workers.
2.—Scope.
The scheme covers all railway servants, except those insured
against invalidity and old age with the National General Pension Fund.
3.—Administration.
The scheme is administered by the Autonomous Provident and
Relief Fund for Railway Workers. This fund is managed by a
governing body with an executive committee elected from among its
members, and a general board divided into three sections (medical,
administrative and technical) with appropriate services. The governing body consists of eleven members, including two representatives of
the Ministry of Public Works and Communications, one representative
of the Ministry of Labour, Health and Social Welfare, two representatives of the State Railways Company, two representatives of railway
officials, two representatives of railway workers, and one representative
of the pensioners.

390

INTERNATIONAL SUEVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The financial resources of the scheme are derived from : (a) a tax
.of 5 per cent, on the annual gross takings of the State Railways
Company ; (6) a deduction of 0 • 5 per cent, from the gross earnings of
all railway servants for the Credit and Savings Fund ; (c) a deduction
of 5 per cent, from the monthly earnings of all railway servants who
do not belong to the National Pension Fund, for the constitution of
pensions ; (d) payments under various heads from the State Railways
Company, including special deductions from wages, fines, grants, etc.
5.—Benefits.
Insurance covers the risks of accident, sickness, maternity, invalidity, old age and death.
The risks of sickness and accident are covered in accordance with
the provisions of the Social Insurance Act and the general regulations
thereunder.
Medical and pharmaceutical benefits and hospital treatment are
provided free of charge by the Autonomous Fund, which sets up,
maintains and manages all the necessary institutions, including
dispensaries, infirmaries, hospitals, sanatoria and pharmacies.
Old-age pensions are awarded in accordance with the Pension Act
and invalidity pensions and pensions to survivors in accordance with
the general social insurance scheme.
Apart from the statutory benefits provided under the general social
insurance scheme, the Fund is bound to provide the insured persons
with additional benefits in case of sickness, accident, childbirth,
invalidity or death. The conditions of award and rates of these
benefits are fixed by the rules of the Fund.
Besides covering the risks of incapacity for work and death, the
Autonomous Fund also maintains a special Credit and Savings Fund
intended to enable railway servants to acquire small properties or
cheap dwellings.
6.—Statistics.
INCOME AND E X P E N D I T U R E FOR

1933

Income
Expenditure for all benefits provided by the fund, except
the Credit and Savings F u n d
Including :
Old-age pensions (19,774 pensions) ...
Medical and pharmaceutical benefits
Accident compensation
Orphans' allowances ...
Allowances for childbirth and death
Miscellaneous benefits...
Other expenditure :
Scholarships and prizes: 25,148,000 lei; erection
and upkeep of buildings : 25,764,000 lei, etc. ...

Lei
639,500,000
558,998,822
445,351,598
41,015,574
4,934,915
1,893,560
3,481,128
1,299,859
51,022,188

CREDIT AND SAVINGS F U N D

Number
Amount
Number
Amount

of
of
of
of

contributions : 91,677.
contributions : 17,400,834 lei.
borrowers a t 31 December 1934 : 34,695.
loans granted at 31 December 1934 : 311,767,250 lei.

391

EUMANIA

B.—WOBKEBS

IN STATE MONOPOLY UNDERTAKINGS

1.—Legal Basis.
The scheme is governed by the Social Insurance Act of 8 April 1933
and the regulations for the General Provident and Pension Fund of
1 April 1924. Two agreements have been concluded between the
Autonomous State Monopolies Fund and the Central Social Insurance
Fund with a view to applying the statutory provisions to industrial
and mining undertakings in the Former Kingdom, Bnkovina and
Bessarabia on the one hand and in Ardeal on the other.
2.—Scope.
The scheme covers workers in tobacco factories, salt works and
distilleries ; skilled and unskilled workers in the agricultural, industrial
and mining undertakings under the control of the Autonomous State
Monopolies Fund and also the supervisory staff excluded from the
provisions of the General Pension Act.
3.—Administration.
The scheme is administered by the Relief and Pension Fund of
the Autonomous State Monopolies Fund and by the Central Social
Insurance Fund.
4.—Financial Resources.
As regards the Central Social Insurance Fund, the workers pay a
weekly contribution based on the wage class to which they belong,
as follows :
Wage class
(lei)

I.
LI.
III.
IV.
V.

U p to 24
25 to 45
46 to 79
80 to 99
100 and over

Contributions
Former
Kingdom
Ardeal
Bukovina and
(lei)
Bessarabia
(lei)
3
2
6
4
11
7
15
11
18
14

The Autonomous State Monopolies Fund, as employer, pays a
contribution equal to the worker's contribution, plus 2 lei weekly for
the Apprentices' Institute Fund.
The contribution of the Autonomous State Monopolies Fund to its
own relief and pension fund is at .the rate of 7 per cent.1 of the worker's
total earnings, and the worker's contribution is 5 per cent, of wages
in the Former Kingdom and 3 per cent, for Ardeal.
5.—Benefits.
Insurance covers the risks of accident, sickness, childbirth,
invalidity, old age and death.
Insured persons are entitled to the ordinary benefits of the Central
Social Insurance Fund, completed as follows by the Relief and Pension
Fund of the Autonomous State Monopolies Fund :
1

The contribution varies slightly in Ardeal.

392

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

(a) Accident insurance.
In case of injury resulting from an accident incurred in the course
of duty and arising out of duty, insured persons are entitled to medical
attendance until recovery, and to the payment of the whole of their
wages during the first three months of incapacity, and half their wages
from the fourth month until recovery or until an invalidity pension is
awarded.
In case of permanent total incapacity, a pension is payable at the
rate of 80 per cent, of wages. This sum may be increased if the
pensioner requires constant attendance, but may in no case exceed
the amount of the wage received at the time of the accident.
In case of death resulting from an accident, a pension at the rate
of 20 per cent, of wages is granted to the parents of the deceased, and
an allowance for funeral expenses.
(b) Sickness insurance.
In addition to medical and pharmaceutical benefits, the insured
persons are entitled during the first three months of sickness to their
full wages, if they are married and have dependent children, 75 per
cent, of their wages if they are married but childless, and 50 per cent.
if they are unmarried. For the following three months the allowance
is at the rate of 50 per cent, of wages.
Funeral benefit is also granted at the rate of one month's wages,
and in no case less than that which would have been due under the
General Social Insurance Act.
(c) Invalidity, old-age and survivors' insurance.
Invalidity pension.—Every member of the scheme with at least 10
years' service is entitled, in case of incapacity resulting from illness,
to a pension at the rate of 20 per cent, of his average wage for the past
two years. The pension is increased by 2 per cent, for every extra
year's service up to the fifteenth, and by 2 • 5 per cent, for every subsequent year, up to a maximum of 80 per cent, of the average wage.
Old-age pension.—Insured persons with at least 15 years' service
are entitled on completing their 57th year (54th year for women) to
an old-age pension at the rate of 30 per cent, of the average wage for
the past two years, with an additional 2-5 per cent, for every extra
year's service up to a maximum of 80 per cent, of the average wage.
Survivors' pensions.—On the death of an insured man, his widow is
entitled to a pension at the rate of 50 per cent, of that to which her
husband was or would have been entitled, provided that the marriage
took place at least two years before death or retirement.
The legitimate or legitimised children of an insured person or
pensioner are entitled up to the age of 16 years to a fraction of the pension to which the deceased was or would have been entitled at the
following rates : fatherless children, 20 per cent, for one child, 35 per
cent, for two children, and 50 per cent, for three children or more ; full
orphans, 50 per cent, for one child, 65 per cent, for two children, 75 per
cent, for three children or more.

393

BUMANIA

<6.—Statistics.
Number of insured persons in 1933 : 8,843.
INCOME

AND

E X P E N D I T U R E OF THE R E L I E F AND P E N S I O N F U N D
AUTONOMOUS STATE MONOPOLIES F U N D FOB 1933

THE

(in lei)
EXPENDITURE

INCOME

Contributions from insured
persons ...
•Contributions from F u n d
Grants from F u n d
Other income
Total income
Deficit covered out
reserves...
Total

5,937.794
10,127,202
25,987,500
428,466

Benefits in kind ...
Cash benefits
Other expenditure

4,494,622
38,366,074
2,008,473

42,480,962
of
2,388,207
44,869,169

Total...

44,869,169

O.—STAFF OF AUTONOMOUS DEPARTMENT OF PORTS AND
WATERWAYS

1.—Legal Basis.
The scheme is governed by the Act of 3 April 1931, to set up the
relief fund for the staff of State shipping companies, and the rules of
the fund appended to the Act.
2.—Scope.
Insurance covers the permanent staff of all the services of the
Autonomous Department of Ports and Water Transport including
officials, lower-grade employees, domestic servants, workers, handicraftsmen and ships' crews.
3.—Administration.
The scheme is administered by the Relief Fund for the staff of the
Autonomous Department of Ports and Water Transport, managed
by a board consisting of five representatives of the governing body
and management of the Autonomous Department and four
representatives of the staff.
4.—Financial Resources.
The staff of the Autonomous Department who are members of the
relief fund but not of the National Pension Fund pay a monthly contribution of 6 per cent, of their wages, of which 5 per cent, is allotted
to the Pension Fund and 1 per cent, to the Relief Fund. Members
of the staff who belonged to the National Pension Fund pay a
contribution of 1 per cent, of wages to the Relief Fund.
The financial resources of the Relief Fund, which are provided
by the Autonomous Department, consist of an initial grant of
17,828,167 lei, a fraction varying between 20 and 25 per cent, of the
special 20 per cent, tax on charges and fixed at the beginning of each
financial year, an annual grant at the rate of 5 per cent, of the total
wages of the staff belonging to the Relief Fund and not to the National
Pension Fund, fines, gifts, bequests, etc.

394

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

5.—Benefits.
Benefits in cash and in kind are provided in case of accident, sickness,
childbirth, invalidity, old age and death.
Benefits in kind consist of medical attendance and medicines and
hospital treatment.
Cash benefits are provided as follows :
(a) Accident.
Compensation at the rate of 40 per cent, of wages for unmarried
men, 50 per cent, for married men without children, and 60 per cent.
for married men with dependent children, payable so long as incapacity
lasts up to a maximum of 12 months. At the expiry of this period an
injured person suffering from permanent total incapacity is entitled
to the retiring pension without any condition as to age.
(b) Sickness.
Compensation at the rate of 20 to 40 per cent, of wages for unmarried men, 25 to 30 per cent, for married men without children, and
30 to 50 per cent, for married men with dependent children, payable t a
insured persons whose wages are not payable during sickness.
(c) Maternity.
In case of childbirth, insured women are entitled to an allowancefixed by the board.
(d) Death.
Funeral benefit equal to one and a half times the monthly wage.
(e) Invalidity, old age and death.
Pensions are awarded to members of the Relief Fund who are not
covered by the National Pension Scheme, to their widows and children,
and also to the widows and children of pensioners, under the following
conditions :
Insured persons are entitled to a pension at the age of 57 years, or
60 years at the latest, and' after 35 years' continuous insurance.
The same pension is payable without any condition as to age to
persons incapacitated for work by sickness after 10 years' membership.
Insured persons are entitled after 10 years' membership to a pension
at the rate of 25 per cent, of the average wage for the past three years.
This pension is increased by 2 per cent, for every additional year from
the tenth to the thirtieth, and by 4 per cent, for every year from the
thirtieth to the thirty-fifth, subject to a maximum of 85 per cent, of
the average wage for the past three years.
Insured persons permanently incapacitated as the result of an
accident are credited with from 10 to 15 extra years' service, but the
pension awarded may not in any case exceed that due after 35
contribution years.
The widow of an insured person or pensioner is entitled to a pension
at the rate of 50 per cent, of that to which the deceased was or would
have been entitled at the time of death.
The legitimate children of a deceased pensioner or insured person
are entitled up to the age of 18 years to a pension at the rate of 15 per
cent, of the widow's pension for one child, 25 per cent, for two children

395

RUMANIA

and 30 per cent, for three or more children. Orphans who have lost
both parents are entitled to a pension at the rate of 25 (one child),
35 (two children), and 50 (three or more children) per cent, of the
pension to which the father was or would have been entitled.
6.—Statistics.
Number of insured persons in 1933 : 5,170.
INCOME AND E X P E N D I T U R E FOB

1933

(In lei)
INCOME

EXPENDITURE

Grants from services, etc
Contributions from in
sured persons ...
Interest on capital
Total

4,237,900
3,231,722
1,473,485
8,943,107

THIRD

Cash benefits
Benefits in kind ...
Cost of administration
Other expenditure
Total.

...

3,195,998
4,985,572
187,086
225,651
8,594,307

PART

SOCIAL ASSISTANCE
I.—Public and Private Social Assistance
1.—Legal Basis.
Social assistance is based on the following enactments : Act of
4 July 1921, concerning the prevention of mendicity and vagrancy;
Rumanian Civil Code (paragraphs 4, 8, 44, 304-308 : foundlings and
illegitimate children ; paragraph 329 : parental authority ; paragraphs
343-349 : guardianship) ; Act of 14 July 1930, concerning welfare
offices, the protection of mothers and children, assistance to the
infirm and social assistance in general ; Penal Code (paragraphs 61-65 :
juvenile offences) ; Act of 13 April 1925, to set up tutelar sections in
the law courts ; Act of 1928 concerning the employment of minors
and women; Assistance Acts concerning guardianship (Act X X of
1877), children's homes (paragraph 8 of the 1910 Act; paragraph 21
of the 1900 Act), and the protection of foundlings (Acts Nos. VIII and
X X I of 1901).
2.—Beneficiaries.
All persons whose economic position is insecure or who are unable
to support themselves from their own resources are entitled to
assistance under the above legislation.
3.—Administration.
There are 36 official institutions attached to the Ministry of Labour,
Health and Social Welfare, and 10 institutions working in collaboration
with private organisations.
The organisation of assistance is entrusted primarily to the municipalities, communes and districts, and comes within the jurisdiction of
the State only in exceptional circumstances.

396

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

According to the Act of 14 July 1930, each of the 71 districts must
organise its own welfare institutions, homes and dispensaries to provide
free assistance to the local population.
In 1933 the State, represented by the Ministry of Labour, Health
and Social Welfare, had at its disposal 20 establishments for the
infirm, the aged, orphans, foundlings and children in need of assistance ;
five establishments for the blind ; two establishments for the deaf and
dumb; and three institutions for the protection of delicate and
mentally deficient children. The number of persons placed in institutions during the year was 2,669.
Private social assistance is provided by 510 charitable organisations
of various kinds.
4.—Financial Resources.
The major part of the cost of social assistance is borne by the
districts and communes, which also support the hospitals and asylums.
As a result of the depression, however, the State has been obliged
to contribute to the maintenance of welfare institutions and departmental and communal hospitals.
I n 1933 a sum of 69,646,455 lei was allotted to the working and
maintenance of State welfare institutions in the national budget.

H.—Shipowners' Liability towards Sick or Injured
Seamen
1.—Legal Basis.
The shipowners' liability towards sick, injured and deceased seamen
is regulated by the Commercial Code of 10 May 1887, as amended in
1895, 1900 and 1906.
Persons employed by State shipping undertakings are covered by
the provisions of the Act concerning the Provident Fund for the staff
of the Autonomous Department of Ports and Water Transport.
2.—Scope.
The Code covers all persons belonging to the crews of ships of not
less than 50 tons.
3.—Benefits.
The Code covers the risks of accident occurring during employment
and sickness contracted or death occurring during a voyage.
The shipowner meurs no liability when the accident, sickness or
death is due to the seaman's own fault.
The shipowner's obligations include : (a) medical treatment and
drugs throughout the period of incapacity, but for not more than
four months after the seaman has been disembarked ; (b) full wages
to sick or injured seamen until the right to medical assistance
expires; (c) disembarkation and repatriation of the seaman; if the
captain considers that the seaman's state of health necessitates his
disembarkation, he must remit to the consular agent or competent
local authorities in the port of disembarkation the sum necessary to
cover the cost of medical treatment for the seaman during a period of

RUMANIA

397

four months and the cost of his repatriation ; (d) payment of a part or
the whole of the seaman's wages to his survivors. If the seaman was
engaged by the month, his wages are paid to his survivors up to the
date of his death. If he was signed on for the voyage, the whole or
half of his wages is paid according as his death took place on the
outward or homeward journey. Full wages are paid if the seaman
was engaged on a profit-sharing basis, or if he died in defence of the
vessel.
If, on the expiry of the shipowner's liability, the seaman is still not
restored to health, he automatically comes under the provisions of
the General Social Insurance Act of 8 April 1933, which also covers
persons employed in maritime shipping undertakings.

FOURTH PART
HOUSING
1.—Legal Basis.
By the Act of 30 May 1930, an Autonomous Building Fund was set
up under the Ministry of Labour, Health and Social Welfare. Amendments were introduced by the Acts of 8 August 1931 and 9 April 1933.
2.—Beneficiaries.
Under the Act, assistance may be granted to :
(a) permanent officials of the civil, military, ecclesiastical, State,
district, municipal and communal services, and officials of institutions
the financial estimates of which require parliamentary approval ;
(6) pensioners under the General Pensions Act and the Military
Pensions Act of 2 September 1920 ;
(c) incapacitated persons, war widows and ex-servicemen ;
(d) workers and handicraftsmen employed in State, district,
municipal and communal establishments and workshops ;
(e) private employees, workers and craftsmen not covered by (<2)
above ;
(/) public institutions ;
(g) all other persons and occupational associations not owning a
dwelling ;
(h) persons insured with the Central Fund (handicraftsmen,
workers and private employees).
3.—Administration.
The Autonomous Building Fund, set up in 1930 as a body corporate
entitled to manage and administer its own affairs, Was transformed by
the 1933 Act into the Building Fund Directorate, attached for budgetary
purposes to the Central Social Insurance Fund. The Fund may receive
grants from the Ministry of Finance and from the district and municipal
authorities.

398

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Measures to encourage Building.
According to the Act of 30 May 1930, the object of the Autonomous
Building Fund is to provide dwellings for the poorer classes. The
moneys available to the Autonomous Sund are used :
(a) to grant long-term loans for the construction of cheap workingclass dwellings. These are of two types : " popular ", with a floor
space of 80 metres, and " economic " with a floor space of 250 metres ;
(6) to build and sell, for cash or payment by instalments, and to
let houses of these types ;
(c) to buy land for re-sale, in plots or otherwise, to persons eligible
for assistance from the Fund ;
(d) to carry out hire-purchase operations ;
(e) to erect public buildings ;
(/) to undertake any other operations likely to mitigate or prevent
the housing shortage.
The Autonomous Building Fund is exempt from the payment of
State and local taxes. All documents concerning the Fund are exempt
from stamp and registration fees.
The special credit of 100,000 lei allotted in the national budget for
1928 to the Ministry of Labour, Health and Social Welfare for the
construction of dwellings for civil and military officials is transferred
to the Autonomous Building Fund.
Similarly, all sums advanced in the form of mortgage loans by
Government departments directly to their employees are transferred
to the Fund, which has also received an estate of about 15 hectares
from the Ministry of State Lands. The State grants subsidies to the
Fund out of the national budget and out of certain surpluses. The
Fund may also receive grants from the local authorities, and donations
and bequests with the approval of its managing committee, no other
special authorisation being required.
Dwellings of the " popular " type are exempt from taxes, stamp
duty and registration fees for 20 years, and those of the " economic "
type for 15 years.
Under the Act of 8 August 1931, all buildings completed before
31 December 1935, are exempt from State taxes. The local rates are
also reduced by 50 per cent, for periods varying according to the
nature of the rates up to a maximum of 20 years.
The Fund may issue bonds secured on its real estate and mortgage
loans up to an amount not exceeding 50 million lei, the approval of
the Government being required for any further issues. The money
realised from the sale of these bonds may be used only to carry out or
promote the building of cheap working-class dwellings.
Loans advanced by the Fund are redeemable within 15 years by
monthly instalments, and bear annual interest at seven per cent. No
interest is payable on the price of the land.
Redemption charges and interest on loans may be reduced for
families with at least two children under age. In such cases, half the
charges and interest may be paid by the Fund.

RUMANIA

399

5.—Statistics.
In 1933-1934, 62 dwellings were erected for persons insured with
the Central Social Insurance Fund whose monthly earnings were less
than 6,000 lei. These dwellings are of two types, type A consisting of
semi-detached one-storey houses, and type B of one-storey houses
containing four dwellings. The total number of tenants housed will
be 240.
During the same year a total of 7,305,000 lei was advanced to 63
borrowers, bearing interest at 2 per cent, and repayable within 20 to
30 years.

FIFTH

FAMILY

PART

ALLOWANCES

Under the terms of a collective agreement concluded in 1933,
workers employed in mines and factories in Ardeal (4,120 workers
employed in thirteen undertakings) are entitled to an allowance of
2 lei for each member of their family for every day worked. The
following are regarded as members of the worker's family : wife and
children under 16 years of age who are not engaged in paid employment ;
children who have been adopted or legitimised in accordance with the
law ; a woman living with a worker as his wife who received a cost-ofliving allowance in 1923 ; parents and grandparents of the worker or
his wife who are incapable of work and without personal means
(whether they live with the worker or not) ; parents drawing a monthly
pension of less than 150 lei who are without other means; mother,
sister or daughter over 16 of a widower who keeps house for him;
orphans of a worker who are dependent on another; illegitimate
children of an unmarried woman worker; wife with whom divorce
proceedings are pending. Young persons, apprentices and minors
with family responsibilities are also entitled to the allowance. Workers
who misrepresent the number or situation of the members of their
family with a view to obtaining the allowance unlawfully forfeit
their right to the allowance for a period of 6 months, and in the event
of a second offence are liable to dismissal.
The regulations for railway workers and the collective agreements
covering some private undertakings also provide for the granting of
certain extra privileges to married workers with or without children
in the form of higher housing or cost-of-living allowances, free wood for
fuel, etc.

400

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

SIXTH PART
HOLIDAYS W I T H PAY
1.—Legal Basis.
Provision for annual holidays with pay for workers and salaried
employees in industry and commerce is made by the Act of 28 March
1929, concerning contracts of employment and the Regulations of
4 October 1933, concerning workers and handicraftsmen employed by
the Rumanian State Railways.
2.—Scope.
The provisions of the Act of 28 March 1929 are of a public character
and apply to workers and salaried employees. Those of the Regulations of 4 October 1933 cover all permanent and temporary workers
employed by the State Railways.
3.—Conditions for the Granting of Holidays.
A hohday is granted after one year's uninterrupted employment
in the same undertaking.
4.—Length of Holiday.
Under the Act of 28 March 1929, the average length of the hohday
is different for manual workers and salaried employees respectively.
For manual workers the following scale is applied : 7 days after
one year, 10 days after three years, 14 days after five years; after 10
years' service an extra day's hohday is granted for each additional
year of service up to a maximum of 30 days.
For salaried employees the annual hohday is 10 days after one
year, 14 days after three years, 21 days after five years ; after 10 years'
service an extra day's hohday is granted for each additional year of
service up to a maximum of 30 days.
These are the minimum periods of holidays which may be granted.
Under the regulations for railway servants annual holidays are
granted as follows : (i) permanent workers with more than 10 years'
service, 30 days; (ii) permanent workers with less than 10 years'
service, 20 days ; (iii) temporary workers with not less than one year's
service, 10 days.
5.—Amount of Remuneration during Holidays.
During the hohday workers covered by the Act of 28 March 1929
are entitled to their average wage for the three preceding months,
including any supplements they would have received had they
remained at work.
Any employer who refuses to grant the statutory hohday is required to pay the worker compensation equal to twice the amount
which would have been due to him for the hohday period.
A worker who works for another employer during the statutory
hohday forfeits his rights and is bound to refund to the employer the
amount received during the hohday; he also forfeits his right to a
paid hohday during the following year.
Railway workers receive their ordinary wages for every working
day, the average wage being based on an eight-hour day.

SPAIN
SUMMABY
PAGE
F I R S T PART :

Statistica of Population

402

SECOND PAKT :

Social Insurance

402

I.—Workmen's Compensation
II.—Maternity Insurance

408

IV.—Voluntary Social Insurance

410

Social Assistance
II.—Benefits paid by Employers in Case of
Accident, Sickness and Death

FOURTH P A S T :

Housing

FIFTH PAST :

Family Allowances

SIXTH PART :

Holidays with Pay

G 14641

416
419

I.-—Assistance for Large Families

406

III.—Old-Age Insurance
V.—Subsidised Benefit Schemes for Staffs of
Certain Railway Companies
THIRD PART :

402

419
419
421

...

423
423

402

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
FIRST

STATISTICS

PART

POPULATION

CENSUS OP 31 D E O E M B E B

1920 1

G A I N F U L L Y OCCUPIED POPULATION CLASSIFIED B Y I N D U S T R I A L STATUS AND
M A I N BRANCHES OF ECONOMIC ACTIVITY

Branch of economic activity

Employers

Employed

Total

Agriculture, forestry, fishing
Mining and quarrying ...
Industry ...
Transport and communications
Commerce

1,183,695
2,037
186,425
18,002
161,487

3,395,087
132,210
1,345,482
222,809
210,560

4,578,782
134,247
1,531,907
240,811
372,047

1,551,646

5,306,148

6,857,794

Total

287,758
253,326
301,261
227,073

Public administration and defence
Liberal professions
Domestic service ...
Occupation not stated ...
Unemployed (persons temporarily
without employment)
Occupied population

35,204

7,962,416

Total population

21,589,842

Total population in 1930

23,563,867

1
Thefiguresgiven in the first edition of the Survey have been reprinted, as the detailed results
of the 1930 census are not yet available.
" Excluding housekeepers, persons of independent means and persons living mainly on income
from real property, retired persons and pensioners, students and pupils, beggars and prostitutes,
inmates of homes, hospitals, etc., prisoners.

SECOND

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
A.—INDUSTRY

AND COMMERCE

1.—Legal Basis.
Legislative Decree of 8 October 1932 consolidating the legislation
governing industrial accidents. Decree of 31 January 1933 introducing
administrative regulations.
2.—Scope.
The insurance scheme covers wage-earning and salaried employees
in industry in general, including transport and shipping undertakings ;
in commerce, hospitals, theatres ; and in all industrialised agricultural
undertakings regularly employing more than six wage-earning
employees or using machinery.

403

SPAIN

The staff of banking establishments and home workers are excluded
from insurance.
Insurance is compulsory only in connection with accidents entailing
the permanent incapacity or the death of the victim.
3.—Administration.
The administration of insurance is entrusted to three types of
institutions : (a) the National Industrial Accident Insurance Fund ;
(6) employers' mutual insurance societies; and (c) private insurance
companies. The institutions mentioned under (6) and (c) are required
to pay into the National Fund sums equal to the capital value of the
pensions for which they are liable.
When an employers' mutual insurance society or an insurance
company fails immediately to pay the capital required to cover a
pension it owes to an insured person, the pension is paid from a special
fund called the Guarantee Fund. This fund, which is administered
by the National Fund, then takes over all the claims which the insured
person possesses against the defaulting society or company.
4.—Financial Resources.
The cost of insurance is borne entirely by the employers. Insurance
premiums are fixed by the above-mentioned institutions in accordance
with the nature and the gravity of the risk to be covered ; they may
not, however, be lower than those fixed by the National Industrial
Accident Insurance Fund in its schedule.
5.—Benefits.
Insurance covers the risk of industrial accident. Insured persona
who are victims of a physical injury met with in the course of or arising
out of work performed for another are entitled to benefits in kind and
cash benefits.
(a) Benefits in kind.
Benefits in kind comprise medical treatment and medicaments;
and the provision of the necessary artificial limbs and appliances.
(b) Cash benefits in case of incapacity.
1. In case of temporary incapacity.—The injured person is entitled
to compensation at the employer's expense equal to three-quarters
of his daily wage from the day on which the accident took place to
that on which he is able to return to work or is declared to be
permanently incapacitated.
2. In case of permanent incapacity.—A wage-eamer permanently
incapacitated as the result of an industrial accident is entitled to a
pension fixed as a percentage of his wage at the following rates :
In case of permanent total incapacity ...
...
...
I n case of permanent total incapaoity for the habitual
occupation b u t not for all work
...
I n case of permanent partial incapacity for the habitual
occupation
...
...
...
...
...
...

Percentage
of wage
50
37-5
25

A supplement of 50 per cent, is granted to injured persons who
require constant attendance.
Cc2

404

INTERNATIONAL SURVEY or

SOCIAL SERVICES,

1933

(c) Benefits to surviving dependants in case of fatal accidents.
Surviving dependants are entitled to a pension fixed as a percentage
of wages which may not exceed :
50 per cent, of the annual wage if the deceased leaves a widow
and children or grandchildren who were dependent on him ;
50 per cent, of the annual wage if the deceased leaves only children
or orphan grandchildren or orphan brothers and sisters under age who
were dependent on him ;
25 per cent, of the annual wage if the deceased leaves a widow
without children or other descendants ;
20 per cent, of the annual wage if the deceased leaves parents or
grandparents of whom two have reached 60 years of age or are
incapacitated, and neither widow nor descendants ;
15 per cent, of the annual wage if the deceased leaves only one such
relative and neither widow nor children.
If the undertaking in which the accident occurs has failed to
comply with the rules laid down for accident prevention, the pension
payable is increased by 50 per cent.
Funeral expenses varying between 100 and 200 pesetas are payable
to surviving dependants in cases of fatal accidents.
6.—Statistics.
N U M B E R OF ACCIDENTS I N 1933 GIVING R I S E TO A P E N S I O N F O B
PERMANENT INCAPACITY OR A SURVIVOR'S P E N S I O N , AND
AGGREGATE AMOUNT O F COVERING CAPITAL 1

(Figures for the National Accident Insurance Fund, the employers' societies and
private companies)
Number of cases

Class of case

Capital covering
pensions in these
cases (in thousands
of pesetas)

Permanent incapacity :
79
680
Partial
22
391
Total
5
140
Absolute
245
4,180
F a t a l accidents
...
Cases regulated by the Guarantee Fund
54
240
(See under 3. Administration)
405
5,631*
Total
1
Benefits for temporary incapacity are borne entirely by the employers. According to the
Spanish Statistical Year-Book for 1932-1933, the number of accidents entailing temporary
Incapacity in 1932 was 139,099.
• Amount paid in 1933 and 1934 for accidents occurring during 1933.
INCOME AND E X P E N D I T U R E FOR

1933 1

(in thousands of pesetas)
INCOME

Employers' contributions
•Covering capital
Interest on capital
Subsidies .
•Overcharge on premiums

Total
1

EXPENDITURE

... 5,610
... 3,890
86
100
73
... 9,759

936
Benefits ...
3,911
Actuarial reserves
Reserves for outstanding claims 2,590
813
Cost of administration...
1,509
Credit balance ...
Total ...

9,759

Figures relating exclusively to operations of the National Industrial Accident Insurance
JFund.

405

SPAIN
BALANCE S H E E T AT 31 D E C E M B E R

1933 1

(in thousands of pesetas)
LIABILITIES

ASSETS

Central account
Securities
Outstanding securities
Collaborating and auxiliary
funds
Employers' mutual insurance
societies
Transitional accounts awaiting
settlement ...
Special administrative fund ...
Special welfare reserve
Outstanding premiums

Total
1

393
4,397
10
2,290
31
519
540
5
3,290

Actuarial reserves
Provision of premiums
Premiums
for
suspended
pensions
Pensions due ...
...
...
Industrial accident guarantee
fund
Agricultural guarantee fund
Reserves for outstanding claims
Premium reserves for current
risks
Guarantee and welfare fund
(initial capital)
Credit balance ...

11,475

Total

3,911
2,073
98
45
54
100
1,428
1,162
500
2,104
11,475

Figures for the National Industrial Accident Insurance Fund.
B.—AGRICULTURE

1.—Legal Basis.
Decree of 12 June 1931 approving rules for the extension of the
Industrial Accidents Act to agriculture. Decree of 25 August 1931
introducing administrative regulations.
2.—Scope.
Any person who works under a contract of employment for an
individual or body corporate on whose account work is performed in
agriculture or forestry is entitled to compensation for injuries resulting
from an industrial accident.
3.—Administration.
Employers may discharge their obligations towards persons injured
in their employment by insuring with the local mutual insurance
societies set up in every municipality or group of adjacent municipalities
with a membership of not less than 100 employers, or with regularly
constituted private accident insurance companies.
4.—Financial Resources.
The cost of insurance is borne entirely by the employer.
5.—Benefits.
Insurance covers the risk of industrial accident, i.e., any physical
injury met with by a worker in the course of or arising out of work
which he is performing on account of another.
Injured workers are entitled to benefits in kind and cash benefits.
Their dependants may also claim compensation.
(a) Benefits in kind.
Benefits in kind comprise medical treatment and medicamente.

406

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1 9 3 3

(b) Cash benefits.
(1) In case of temporary incapacity, the injured person receives
compensation equal to three-quarters of his daily wage from the day
on which the accident occurred to that on which he is able to return
to Work, no deduction being made for public holidays. If incapacity
still continues after a year has elapsed, compensation is fixed according
to the provisions relating to permanent incapacity.
(2) In case of permanent partial incapacity for the occupation or
kind of work in which the injured person was employed, he is entitled
to compensation equal to a year's wages.
(3) In case oí permanent total incapacity for the habitual occupation,
the injured person is entitled to compensation equal to 18 months'
wages.
(4) In case of total permanent incapacity for all work, the injured
person is entitled to compensation equal to two years' wages.
(c) Benefits to surviving dependants in case of fatal accidents.
If the accident results in the death of the victim, the surviving
dependants, i.e., the widow (or invalid widower dependent for maintenance on the deceased), children and grandchildren up to the age of
18 are entitled to the following compensation :
(1) A widow left without children or other descendants receives
a sum equal to the victim's wages for one year.
(2) A widow left with dependent children or grandchildren receives
two years' wages.
(3) Orphan children or grandchildren left without either parent
receive two years' wages.
(4) Parents or grandparents of a deceased person who leaves
neither widow nor descendants receive 10 months' wages provided
they are indigent and not less than 60 years of age or incapable of work.
If there is only one such relative, only 7 months' wages are paid.
The compensation due may be paid in the form of a pension.

6.—Statistics.
The National Industrial Accident Insurance Fund was unable to
supply any figures for 1933 with regard to the mutual agricultural
insurance societies and private insurance companies.

EI.—Maternity Insurance
1.—Legal Basis.
Legislative Decree of 22 March 1929 establishing maternity insurance. Decree of 29 January 1930 approving administrative regulations.
Act of 12 October 1931.

407

SPAIN

2.—Scope.
Insurance is compulsory for all women wage earners and salaried
employees covered by the compulsory workers' old-age pension
scheme, irrespective of their nationality and civil condition, that is
to say, all women workers between 16 and 50 years of age employed in
industry in general, agriculture, and the public services whose annual
remuneration does not exceed 4,000 pesetas. Women home workers are
also covered by insurance, but women employed in domestic service
are excluded.
3.—Administration.
Maternity insurance is administered by the National Provident
Institution and the district funds collaborating with it. These bodies
may delegate a part of their duties to the mutual institutions for the
protection of mothers and infants, or to the mutual sickness funds.
4.—Financial Resources.
The financial resources are derived from :
(a) An annual contribution (payable quarterly) of 7-40 pesetas
from all insured women between 16 and 50 years of age ;
(6) An employer's contribution, amounting to 7.60 pesetas a year
(payable quarterly) for each insured woman in his employment;
(c) State subsidies, including a grant of 50 pesetas for each confinement, a grant towards nursing allowances, and an annual contribution
varying with the amount of money at the State's disposal for the
establishment of maternity and infant welfare institutions.
5.—Benefits.
Insurance benefits include medical treatment and medicaments,
attendance by a midwife or in a maternity home and cash benefits.
Cash benefit is fixed at 15 pesetas for every quarterly contribution
paid by the insured woman during the three years preceding the first
week of the statutory rest period. It is paid in respect of every confinement and is granted during the six weeks preceding and the six
weeks following the confinement (the statutory rest period). To be
entitled to this benefit the woman must observe the statutory rest
period and must have completed a qualifying period of 18 months in
insurance before the confinement.
A nursing allowance of 5 pesetas a week is also payable during a
period of ten weeks.
6.—Statistics.
Insured Wotnen in 1933
Number of insured women registered during year
Total number of insured women registered a t end
of year
Women in Beceipt
Number of women in receipt of
Number of women in receipt of
Number of women in receipt of

of Benefit in 1933
medical benefit
...
cash benefit
...
nursing allowances...

90,865
591,243
26,514
15,509
24,074

408

INTERNATIONAL SURVEY O í SOCIAL SERVICES, 1933
INCOME AND E X P E N D I T U R E TOR

1933

(in thousands of pesetas)
INCOME

]

Contributions of insured women
and their employers ...
5,739
Public subsidies...
2,864
Income from capital
83
Other income
150

Total

8,836

EXPENDITURE

Benefits in kind :
Medical assistance ...
Cash benefits :
Allowance during rest period
Nursing allowance ...
Cost of administration ...
Credit balance ...
Total

4,459
1,604
1,360
287
1,126
8,836

Assets of the Maternity Insurance Scheme at the end of 1933 : 7,971,700 pesetas.

HI.—Old-Age Insurance
1.—Legal Basis.
The old-age insurance legislation is based mainly on the Royal
Decree of 11 March 1919. Since it came into operation, this Decree has
been amended by a number of Decrees and Orders, but so far no
fundamental change has been made.
2.—Scope.
The obligation to insure extends to all wage earners of either sex,
aged between 16 and 65 years, whose annual wages do not exceed
4,000 pesetas. The different economic branches liable to insurance
are : (1) industry (including mining), commerce, and transport
(including shipping and deep-sea fishing) ; (2) agriculture ; (3) municipal, provincial or district corporations and independent official
institutions, professional work and home work.
The following are exempted from insurance : civil servants,
teachers, domestic workers, and all employed persons whatever their
occupation who, when the Act came into force, were in possession of
a life annuity of at least 1 peseta a day.
The original Act divides insured persons into two classes, one
composed of those who have not reached the age of 45, and one composed
of those over 45 years of age, at the time of their admission to insurance.
Only persons belonging to the first group can be considered as coming
under a real insurance system, since that in force for persons in the
second group is merely a savings scheme.
3.—Administration.
The administration of insurance is entrusted to the National
Provident Institution and its collaborating funds. The Institution acts
as a central organ of supervision and reinsurance. The collaborating
funds are provincial and district institutions entrusted by the Institution with the administration of insurance in certain specified areas.
4.—Financial Resources.
The ordinary revenue of the insurance system is derived from (a)
compulsory contributions from employers, (6) an annual State subsidy
equal to one-third of the employers' contribution, (c) voluntary contributions from compulsorily insured persons, and (d) income from
capital.

SPAIN

409

The employers are required to pay a uniform contribution of
36 pesetas a year for each of their workers.
The State contribution towards the cost of compulsory insurance
consists of a subsidy amounting to a maximum of 12 pesetas a year for
each person covered by insurance.
Another source of revenue is the provisional fund formed from the
proceeds of the inheritance tax, which is used for insured persons
belonging to the second group, i.e., persons who were over 45 years of
age on entering insurance.
5.—Benefits.
Compulsory insurance covers the risk of old age and subsidiarily
that of invalidity.
(a) Old-age pensions.
Old-age pensions are paid to persons in the first group (those insured
before 45 years of age) on attaining the age of 65.
Insured persons who work uninterruptedly from the date of their
admission to insurance until they reach 65 years of age are entitled to
an annual pension of 365 pesetas. This pension may be increased by
means of voluntary contributions paid by the insured person. The
first old-age pensions payable to insured persons of the first group will
not fall due until 1 July 1941.
Insured persons in the second group (those insured after 45 years
of age) become entitled to all sums entered to their credit in their
insurance books at the age of 65 years.
(b) Provisional invalidity insurance.
The invalidity insurance scheme at present in force is a provisional
arrangement only, the risk of invalidity being covered only for persons
who make personal and voluntary contributions for an uninterrupted
period of 12 months, with a view to increasing their old-age pension.
The amount of such contributions must not be less than the additional
premium required to enable the pension acquired on the basis of
alienated capital to be payable, without reduction, as though acquired on
the basis of repayable capital.
The invalidity pension is payable only when the insured person is
wholly incapacitated as a result of one of the infirmities enumerated
in the administrative regulations. For insured persons who have
voluntarily paid the additional contribution it is fixed at 365 pesetas
a year, and consists of two parts : (a) the old-age pension, awarded
before the normal pensionable age ; and (6) the supplement, if any,
required to bring it up to the guaranteed minimum (365 pesetas).
6.—Statistics.
Statistics of the Institution and its collaborating funds for 1933 :
Number of insured persons registered at end of year ... 4,812,000
Number of insured persons registered during year
...
401,003
Number of persons in receipt of benefit :
1
First group
...
...
...
...
...
...
Second group :
During year ...
...
...
...
...
...
15,575
At end of year
107,025
1
These benefits will not become due until 1 July 1941. Up to the end of 1931,120,097 insured
women received provisional maternity benefit of 50 pesetas for each confinement.

410

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
INCOME AND E X P E N D I T U R E FOB

19331

(in thousands of pesetas)
INCOME

EXPENDITURE

Compulsory
contributions
from employers ...
...
Subsidies from public authorities
Voluntary contributions from
compulsorily insured persons
Transitional
supplementary
fund derived from the inheritance t a x
...
...
Income from capital 8
...
2
Other income
...
...
Total

43,598
14,532
269
4,563
12,156 s
8s

Benefits to the aged (second
group); payment of balances in insurance books ...
Supplementary benefits paid
Benefits to the infirm
Benefits to insured persons
paying voluntary contributions
Cost of administration 2
Other expenditure 2
Credit balance

75,126

Total

3,841
4,563
2
9
2,835«
813
r
63,063
75,126

1
Statistics for the Institution and ita collaborating funds.
* Statistics for the Institution ; nofiguresare available for the funds.
* Including figures for voluntary insurance. Annual interest on capital invested since the
introduction of the voluntary and compulsory insurance schemes.
* This figure includes the expenditure of all other branches of insurance except accident
insurance.

BALANCE S H E E T AT 31 D E C E M B E R

1933 1

(in thousands of pesetas)
LIABILITIES

Central account
963
Securities
.. 216,731
Loans of a social character . .. 29,710
Town property
3,690
Outstanding securities
1,271
State subsidies
.. 30,019
Collaborating funds ...
3,733

Total

286,117

Compulsory Scheme
Actuarial reserves :
Insurance ...
27,004
Reinsurance
136,598
Funds on deposit
48,409
Transitional accounts awaiting settlement
3,434
Supplementary benefit fund
5,263
Outstanding contributions ...
2,581
Special reserves
7,161
Credit balance
20,052
Supplementary Voluntary Insurance of
Compulsorily Insured Persons
Actuarial reserves :
Insurance ...
520
Reinsurance
3,337
Items of the corresponding
balance sheet for voluntary
insurance included in the
assets
31,758
Total

... 286,117

Statistics for the Institution.
Includingfiguresfor voluntary insurance.

IV.—Voluntary Social Insurance
A.—SICKNESS

INSURANCE

1.—Legal Basis.
Up to 1933 no special legislation had been introduced to regulate
sickness insurance. The institutions engaging in voluntary sickness
insurance (mutual benefit societies) are based on the provisions of the

SPAIN

411

Act of 30 June 1887 respecting freedom of association. These
institutions are however subject to certain measures of supervision on
the part of the provincial authorities and the central insurance and
public health authorities.
2.—Scope.
All persons complying with the conditions of admission fixed in the
rules of the institution are eligible for membership. These vary with
the different institutions and refer mainly, but not exclusively, to the
sex, age and state of health of the applicant. As a general rule, the
age of admission is limited to a minimum of 16 and a maximum of 40 to
45 years. Apart from conditions of a physical nature, certain funds
impose occupational, moral, denominational and legal conditions
varying according to the fund.
3.—Administration.
Voluntary sickness insurance is undertaken as a rule by mutual
benefit societies having the character of trade union funds, works
funds, occupational funds, denominational funds, or local public
funds. I t is to the last-mentioned class that the largest number of
societies belong.
4.—Financial Resources.
The funds of the societies are derived from contributions from the
insured persons, contributions and subsidies from the employers,
income from capital, and in some cases financial assistance from the
public authorities. The assistance of the public authorities is in no
way guaranteed and varies from one province to another. In practice,
the State assistance to certain funds takes the form of reimbursement
of expenses.
5.—Benefits.
The societies insure against the risk of sickness and, in some cases,
of maternity.
The benefits guaranteed under the rules of the societies may
include : (a) medical treatment and medicaments, or institutional
treatment ; (b) daily cash benefit intended to cover a part of the loss
of earnings.
While certain societies grant only benefits in kind, others have
been established on purpose to provide cash benefits. At present,
however, the general tendency among mutual benefit societies, especially
in industrial districts, is to provide for the granting of both benefits
in kind and cash benefits.
6.—Statistics.
The Office has no statistics relating to the working of voluntary
social insurance.
B.—VOLUNTARY OLD-AGE INSURANCE

1.—Legal Basis.
Voluntary old-age insurance is organised in three distinct forms,
namely :
(a) Individual voluntary insurance, which is governed by the
basic Act of 27 February 1908 relating to the establishment and

412

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

endowment of the National Provident Institution, the Rules of the
Institution published on 24 December 1908 and 26 January 1909 as
supplemented and amended in 1922 and 1931, and the Administrative
Regulations of 17 August 1910 ;
(b) Collective voluntary insurance, as provided for by the Regulations of 10 December 1929 as amended on 20 April 1932 ;
(c) Insurance of school-children, which is governed by the Royal
Decree of 7 July 1911 establishing school mutual insurance societies,
and the Regulations of 11 May 1912 as amended in 1922, 1923 and
1930. A Royal Decree of 20 December 1919 made the establishment
of mutual insurance societies compulsory in all State schools.
2.—Scope.
Voluntary old-age insurance is open to all Spanish workers and
workers of foreign nationality resident in Spain. Since compulsory
old-age insurance came into force, individual voluntary insurance has
become a supplementary means of insurance open to wage-earning
employees not liable to compulsory insurance and independent
workers.
Collective voluntary insurance is compulsory for all salaried
employees and lower-grade staff of the National Provident Institution,
but is optional for bodies and institutions having a similar need for
insurance. Collective insurance is the accepted system for salaried
employees.
The insurance of children was introduced to encourage the establishment of mutual benefit societies in elementary schools.
3.—Administration.
The institutions in charge of subsidised voluntary old-age insurance
are the National Provident Institution and its collaborating funds.
Collective voluntary insurance is generally undertaken by the mutual
benefit societies set up by the National Provident Institution. The
insurance of children is organised by the school mutual insurance
societies attached to the National Provident Institution, and is under
the supervision of the Ministry of Education.
4.—Financial Resources.
The resources of the various branches of the voluntary old-age
insurance system are derived from contributions from insured persons,
State subsidies, and income from capital. Deposits made by voluntarily insured persons may not exceed the sum required to produce
an annual pension of 3,000 pesetas.
The State grants a variable subsidy towards pensions, payable to
the National Provident Institution, which may amount to as much
as 12 pesetas a year for each insured person.
5.—Benefits.
The main object of individual or collective voluntary old-age
insurance is to provide deferred or temporary annuities. The main,
but not the sole, object of the school mutual benefit societies is to make
provision for old-age pensions and the payment of dowries. Other

413

SPAIN

risks, such as sickness, may be covered. Similarly, the school societies
may devote part of their activities to social work, such as hygienic
improvements, the estabhshment of holiday camps for school-children,
etc.
6.—Statistics.
T H E NATIONAL PROVIDENT INSTITUTION AND ITS COLLABORATING F U N D S
IN 1933
Individual
voluntary
insurance
During
year
N u m b e r of i n s u r e d
N u m b e r of m e m b e r s
in
receipt
of
benefits...

At end
of year

Collective voluntary
insurance
(mutual welfare)

Insurance
of
school-children

During
year

At end
of year

During
year

At end
of year

2,370

181,590

133

1,575

16,987

535,217

1,346

13,058

11,099

49,221

INCOME AND E X P E N D I T U R E POR

1933 1

(in thousands of pesetas)
EXPENDITURE

INCOME

Contributions of insured persons :
(a) Individual
voluntary
insurance ...
...
... 2,196
(b) Collective voluntary
surance
...
...
(c) Insurance
children .

in...

school1,533

S t a t e subsidies :
Individual
voluntary
surance

in-

Insurance of school-children
Income from capital 2
»Other income

Total
11

876

121
429

...

Benefits to insured persons :
(a) Individual
voluntary
insurance :
Payments in the form of
pensions
...
...
Payments to dependants
in the form of capital...
(6) Collective voluntary insurance :
Payments in the form of
pensions
...
...
Payments t o survivors...
Payments in the form of
capital
...
...
(c) Insurance of children :
Payments in the form
dowries ...
...
Payments to survivors
the form of capital

...

5,155

of
...
in
...

1,699
232

28
34
26

961
539

(d) Cost of administration 2 ...

—

(e) Other expenditure 2

...

—

...

3,510

Total

Figures for the Institution and its collaborating funds.
-* These figures are included in the statistics for compulsory old-age insurance.

414

INTERNATIONAL STTRVEY OF SOCIAL SERVICES, 1 9 3 3
BALANCE S H E E T AT 31 D E C E M B E R

1933 1

(in thousands of pesetas)
LIABILITIES

ASSETS

Total

279,616

Securities

6,501

Individual
voluntary
insurance :
Actuarial reserves
Outstanding
contributions ...
Initial capital ...

18,129
940
500

Collective
voluntary
insurance :
Actuarial reserves
Special reserve fund
Outstanding contibutions
Outstanding obligations
Funds on deposit

5,355
976
157
7
6

Insurance of school-children :
Actuarial reserves
Outstanding contributions

5,29»
390

Items of t h e compulsory oldage balance-sheet included
in the assets
254,359^
Total

286,117»

Total

286,117

Figures for the Institution.
' Including the assets of the compulsory old-age insurance scheme.
C.—UNEMPLOYMENT

INSURANCE

1.—Legal Basis.
A voluntary insurance scheme subsidised by the State, which was
established by the Decree of 25 March 1931 ; the Administrative
Regulations were approved by the Decree of 30 September 1931.
2.—Scope.
The scheme applies normally to all wage-earning employees capable
of work and aged between 16 and 65 years, provided their earnings
do not exceed 6,000 pesetas a year. Public officials and domestic
servants are excluded. The admission of alien workers is subject to the
principle of reciprocity, except in the case of nationals of Andorra,
Portugal and the Latin-American Republics.
3.—Administration.
The axlministration of insurance is entrusted to :
(a) the primary organisations specially authorised by the National
Unemployment Fund to carry on unemployment insurance on behalf
of their members ;

SPAIN

415

(6) the National Unemployment Fund, a department of the
National Provident Institution, which among other things is responsible
for the management of the sums put at its disposal and their distribution among the primary organisations, and for the administration of
a Joint Fund, which is used to meet any temporary increase in unemployment.
4.—Financial Resources.
The financial resources of insurance are derived from :
(a) Contributions from the insured persons and, in some cases,
from other members of the primary organisations; 5 per cent, of
these contributions must be paid into the Joint Fund ;
(b) State subsidies, including :
1. sums granted through the National Unemployment Fund to
the primary organisations to increase by 50 per cent, the allowances
made by these organisations to the unemployed;
2. sums which allow the Unemployment Fund to pay to compulsory
social insurance schemes the employers' and workers' contributions
due for unemployed insured persons ;
3. subsidies to the Joint Fund, equal to the total amount received
by this Fund from the primary organisations ;
(c) Private gifts.
5.—Benefits.
(a) Insurance covers the risk of lack of employment brought about
by causes beyond the control of the worker who is unable to find
employment corresponding to his habitual occupation. I t does not
cover the risk of unemployment due to the physical incapacity of the
worker, or resulting from an industrial dispute in which the unemployed
person is directly involved.
(b) Benefits are variable, but may not be higher than 60 per cent.
of the wage paid in the district for a normal day's work to workers of
the same occupational category as the insured person. If this limit
is exceeded, the supplement of 50 per cent, granted by the National
Employment Fund to the allowance paid to the unemployed person
by the primary organisation must be reduced in proportion. Throughout the period during which supplementary unemployment allowance is
granted, the Unemployment Insurance Fund also pays the contributions
due from unemployed persons and their employers in respect of
compulsory social insurance. The supplement to unemployment
benefit is not granted for more than 60 days in the course of twelve
consecutive months.
6.—Statistics.
Number of insured persons in the primary organisations
recognised by the National Unemployment F u n d in
1933
57,392
Number of persons in receipt of benefit in 1933
(approx.) 11,000

416

INTERNATIONAL SURVEY OS SOCIAL SERVICES, 1933
INCOME M D

E X P E N D I T URE FOR

1933

(in thousands of pesetas)
INCOME

EXPENDITURE

State subsidies :
(a) Grants towards supplementary unemployment benefit :
Brought forward from 1932 417
1933
... 1,000
(6) Grants towards contributions t o compulsory social
insurance :
1932
...
51
1933
120
(c) Subsidy towards costs of
publicity and aolministration 127
Joint F u n d :
Brought forward from 1932 ...
35
1933 State subsidy
53
Payments received from the
primary organisations
...
53
Total
... 1,856
1

Supplement of 50 per cent, on
benefits paid ...
...
...
Contributions t o social insurance
Joint Fund
...
...
...
Cost of administration...
...

478 1
35
—
127

Credit balance in December 1933 1,216

Total

1,856

Aggregate amount of benefits paid : 1,057,707 pesetas.
BALANCE S H E E T AT E N D OF

1933

(in thousands of pesetas)
ASSETS

Central fund
Securities

...
...

Total

...
...

1,134
363
1,497

LIABILITIES

State subsidies ...
Collaborating funds
Joint Fund
Total

1,142
70
285
1,497

V.—Subsidised Benefit Schemes tor Staffs of Certain Railway
Companies
A.—PROVIDENT

FUND OF THE NORTHERN RAILWAY COMPANY

The Provident Fund of the Northern Railway Company was
founded in 1879.
1.—Financial Resources.
Up to 1912 a deduction varying from 0-5 to 1 per cent, was made
from wages. The proceeds from fines and the sale of platform tickets
also went to swell the revenue of the Fund.
From 1 January 1913, deductions from wages were discontinued,
and at present the revenue of the Fund consists solely of the proceeds
from fines and the sale of platform tickets and direct contributions
from the Company.
2.—Benefits.
The Provident Fund covers the risks of sickness, old age and death.
Throughout any period of sickness a wage-earning or salaried
employee receives an allowance equal to 50 per cent, of his
remuneration.

417

SPAIN

The Fund has a special medical service comprising 37 emergency
consulting rooms, and a medical institution in Madrid with a hospital
where injured Company servants are received and treated.
The Fund also grants old-age and survivors' pensions to its members
who reach the retiring age.
3.—Statistics.
During 1933 the Provident Fund paid out 1,417,077 pesetas in
sickness benefit.
It granted 4,696 retiring pensions, 4,022 widows' pensions and 241
orphans' pensions. The total expenditure on pensions was 9,119,722
pesetas.
A further sum of 784,038 pesetas was granted in the form of special
compensation to sick persons and survivors of workers who died
before reaching the pensionable age.
B.—PROVIDENT

SCHEMES ORGANISED BY THE MADRID-SARAGOSSAALICANTE RAILWAY COMPANY

The Madrid-Saragossa Railway Company has organised a number
of provident schemes for its staff.
1.—Benefits.
(a) Sickness benefit.
Sickness benefit includes the provision of medical treatment and
medicaments for wage-earning and salaried employees incapacitated
for work as the result of sickness or accident. It is administered by
doctors having a contract with the Company; medical practitioners
not in the Company's employment intervene only in cases of urgency.
Members of the Company's staff are entitled to full pay during the
first 60 days of sickness. This period may be extended by 30 days
with the approval of the competent chief of service ; in exceptional
circumstances it may be prolonged indefinitely by agreement with the
managing committee of the Company.
(b) Old-age and survivors' pensions.
Non-contributory old-age and survivors' pensions are paid to
members of the staff who reach the retiring age, and to their dependants.
In case of premature death of a member of the staff, the Company
grants subsidies to his family.
2.—Statistics.
(a) Sickness benefit.
During 1933 the Company spent 1,933,324 pesetas on doctors' fees
and 154,973 pesetas on medicaments. Sick pay to sick wage-earning
and salaried employees amounted in the same year to 3,306,115 pesetas.
(b) Old-age and survivors' pensions.
During 1933 the Company paid 2,740 old-age pensions, 2,623
widows' pensions and 58 orphans' pensions, the total expenditure
incurred under these heads being 7,077,136 pesetas.
A further sum of 145,511 pesetas was spent in the form of compensation to the families of deceased members of the staff.
*

G 14641

418

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

G.—PROVIDENT

SCHEMES OBGANISED BY THE ANDALUSIAN RAILWAY
COMPANY

1.—Sickness Benefit.
The Company gives full p a y to wage-earning a n d salaried employees
unable t o work as t h e result of sickness for 64 days in a n y twelve
consecutive months. This period may, when necessary, be increased
b y 30 days for persons with a given length of service t o their credit.
2.—Old-Age and Survivors' Pensions.
The Company has established a non-contributory old-age pension
scheme.
I t also provides special grants a n d medical a n d surgical t r e a t m e n t
for survivors of wage-earning a n d salaried employees who die before
reaching t h e pensionable age.
3.—Statistics.
(a) Sickness benefit.
The expenditure under this head in 1933 amounted t o 500,000
pesetas.
(b) Old-age and survivors' pensions.
I n 1933, t h e Company paid 1,102 old-age pensions, 726 widows'
pensions a n d 67 orphans' pensions, the total expenditure incurred
under these heads being 2,258,631 pesetas.
A further sum of 105,222 pesetas was spent on special relief.
D.—PBOVTDENT

SCHEMES ORGANISED . BY THE NATIONAL RAILWAY
COMPANY OF THE W E S T o r SPAIN

1.—Accident Benefit.
A s u m of 200,000 pesetas is paid b y the Company towards t h e
compensation of accidents incurred by members of its staff.
2.—Sickness Benefit.
I n case of sickness, the worker or salaried employee continues t o
receive full p a y for a period of 60 days. I n exceptional cases this
period m a y be doubled with t h e approval of t h e managing committee
of the Company.
The staff of t h e Company is also entitled t o free medical t r e a t m e n t
a n d medicaments.
3.—Old-Age and Survivors' Pensions.
A pension fund has been formed by combining t h e relief funds of
the various lines which amalgamated t o form t h e National Railway
Company of the West of Spain. This fund began operations in October
1933, a n d grants higher pensions t h a n those formerly paid by t h e
various relief funds.
The minimum pension is equal t o 40 per cent, of t h e p a y drawn
b y the beneficiary a t t h e time of his retirement, a n d m a y in no case
be less t h a n 1,000 pesetas, except in the case of level-crossing keepers,
or more t h a n 12,000 pesetas.

419

SPAIN

4.—Statistics.
Sickness relief in 1933.—During 1933 the Provident Fund spent
160,337 pesetas on medical treatment and 20,577 pesetas on
medicaments.
The cost to the Company of granting full pay to workers and
employees during periods of incapacity for work is not recorded.
The capital of the pension fund formed from the existing relief
funds amounted at the date of amalgamation (1 October 1933) to
724,655 pesetas.

THIRD PART

SOCIAL ASSISTANCE
I.—Assistance for Large Families
1.—Legal Basis.
Decree issued by the Prime Minister on 27 December 1932 and
the Decree of 4 February 1933.
2.—Administration.
By the Decree of 4 February 1933 the Minister of Education
entrusted the administration of the legislative provisions governing
assistance for large families to the manager of the public educational
establishment with which the person fulfilling the conditions of
ehgibihty for assistance laid down in the Decree of 21 June 1926 is
registered.
3.—Benefits.
Assistance for large families in the form of cash allowances has
been abolished. At present, it merely includes free admission for
children to all State educational establishments and the free issue of an
identity card of the sixteenth class.
Statistics are not available.

II.—Benefits paid by Employers in Case of Accident, Sickness
and Death
A.—SICKNESS

BENEFIT

1.—Legal Basis.
The rights of wage-earning and salaried employees to all or part
of their pay during sickness are governed by collective agreements,
the general principles of which are fixed by the Act of 21 November
1931 concerning contracts of employment.
Del 2

420

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

2.—Scope.
The Act regulating contracts of employment applies to all persons
carrying out work on account of and under the authority of another
person, or rendering services under similar conditions, including
domestic service.
The Act does not apply to persons carrying out work of a family
nature, or work which, while not of a family nature, is carried out
from time to time by so-called friendly, charitable or neighbourly
services.
3.—Benefits.
A wage-earning or salaried employee living in his employer's house
is entitled in case of sickness to accommodation, board and medical
treatment at the employer's expense for a period of four weeks. With
regard to other wage-earners, the Act of 21 November 1931 concerning
contracts of employment contains no stipulations regarding sickness
benefit at the employer's expense and all such matters are therefore
regulated by collective agreement.
4.—Statistics.
In 1933 the sums spent by 68 employers employing about 120,620
wage-earning and salaried employees in the electrical, building, mining,
metal-working, forestry, chemical, inland and maritime transport,
textile, shipbuilding, etc., industries were as follows :
Sickness benefit ...
Maternity benefit
Accident pensions
Old-age pensions ...
Invalidity and survivors' pensions
Family allowances
Medical benefit (transport undertakings)

...

Pesetas
6,965,130
2,683
211,928
869,925
17,085,152
2,176,284
1,974,505

B.—SHIPOWNERS' LIABILITY TOWARDS SICK, INJURED on DECEASED
SEAMEN

1.—Legal Basis.
The shipowner's liability towards sick, injured or deceased seamen
is defined in sections 644 and 645 of the Commercial Code and the
Royal Decree of 26 March 1925 approving regulations respecting the
engagement of crews for merchant vessels, and by the provisions of
the Royal Decree of 26 August 1926 approving the Labour Code
(Chapters I I I and IX).
2. Scope.
The legislation covers all persons forming part of the crew of a
merchant vessel.
3.—Benefits.
*
The legislation covers the risks of sickness and accident occurring
in the course of service and of death during the voyage.
The shipowner's liability towards the seaman includes the provision
of benefits in kind and cash benefits.

SPAIN

421

(a) In case of sickness, the seaman is entitled to :
(i) Medical treatment and medicaments while at sea, and if
he is put ashore, until his contract expires. (In practice, the
contract is terminated not more than one month after the
seaman is put ashore) ;
(ii) Full pay throughout the whole period of sickness on board
ship, and if he is put ashore, for not more than one month ;
(iii) The payment of his passage to the port of discharge.
(b) In case of accident, shipowners are required to insure their
ships' crews against maritime accidents in accordance with the legislative provisions governing the general compulsory accident insurance
scheme. At the same time, the right to benefit under accident
insurance in no way prejudices the rights granted to seamen under the
Commercial Code. Seamen therefore keep their right to full wages and
medical treatment and medicaments at the shipowner's expense in
case of temporary incapacity for work due to injuries.
(c) In case of death, the shipowner is required, independently of
any benefits granted under compulsory insurance, to pay to the
deceased's dependants the wages earned and not received by the
seaman prior to his death or, following the method of payment laid
down in the contract of employment and the circumstances of death,
the whole or part of all wages, profits or other moneys due to the
deceased seaman.
4.—Statistics.
No statistics for 1933 are available.

FOURTH PART

HOUSING
1.—Legal Basis.
The legislation governing cheap housing is based on the Administrative Regulations of 8 July 1922 as amended on 30 October 1925
and subsequently, and on the Legislative Decrees of 10 October 1924
and 29 June 1925, which were converted into an Act on 9 September
1931.
Special legislation is in force for public servants.
2.—Beneficiaries.
Persons occupying cheap dwellings may not earn over 8,000 pesetas
a year from their employment. As regards " economic " dwellings,
this figure is increased to 15,000 pesetas.
The cost of building cheap dwellings may not exceed 40,000 pesetas ;
that of " economic " dwellings 75,000 pesetas.
3.—Authorities and Undertakings concerned in Building.
The construction of cheap dwellings may be undertaken by provincial authorities, municipalities, co-operative building societies, commercial undertakings and philanthropic institutions.

422

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

The co-operative building societies are in receipt of wider privileges
than those granted to societies putting up cheap dwellings with a view
to profit.
The administration of legislative matters is left to the Social
Building Service of the Ministry of Labour, Health and Social Welfare,
while financial questions and the management of houses seized for
debt are dealt with by an independent body called the State Social
Building Service which is under the authority of the Under-Secretary
of State for Labour.
4.—Financing by Public Authorities.
The State itself does not undertake the construction of cheap
dwellings, but it provides material help in the form of :
(a) Exemption from dues and taxes on all building plans clearly
intended for cheap dwellings. This exemption is granted for
twenty years, or for longer if the plan is financed by State
loans and the redemption period exceeds twenty years; for
" economic " dwellings the redemption period is fifteen years ;
(b) Participation in the building costs, by means of nonrepayable subsidies amounting to 10-20 per cent, of the general
building estimates ;
(c) Loans amounting to not more than 55 per cent, of the value
of the site and 70 per cent, of the value of the building,
repayable within not more than thirty years at not less than
3 per cent, interest ;
(d) Payment of a part of the interest on bonds issued by cheap
housing societies, provided this fraction does not exceed
3 per cent.
The State also lends free of charge the services of its technical
departments (verification of estimates, inspection of works, fixing of
rents, etc.) and may pay part of the interest on mortgage loans.
Savings funds and certain credit societies also contribute towards
the building of cheap dwellings by granting loans to co-operative
building societies.
5.—Statistics.
During 1933 the sums provided by the public authorities to finance
the building of cheap dwellings amounted to :
Pesetas
2,891,197
5,853,932

Grants
Loans
Total

8745,129

SPAIN

423

F I F T H PART
FAMILY

ALLOWANCES

There is no legislation to compel employers to grant allowances to
wage-earning and salaried employees with family responsibilities.
Some large undertakings do, however, grant special allowances to
members of the staff with large families. For example, during 1933,
shipbuilding undertakings paid a total of 1,474,561 pesetas to members
of their staffs in the form of family allowances.
The railway companies (Northern, Saragossa-Alicante, a n d Andalusian) also grant special relief in the case of large families. During
1933 the sum so spent was 872,762 pesetas.

SIXTH PART
HOLIDAYS WITH PAY
1.—Legal Basis.
Holidays with pay were introduced by the Act of 21 November
1931 relating to contracts of employment for all workers whose contract
has lasted one year.
2.—Scope.
According to section 6 of the Act, the term " worker " includes
apprentices, paid or unpaid ; persons employed in domestic service ;
home workers ; skilled or unskilled workers in any trade, manual or
mechanical work, and persons who perform ordinary unskilled work ;
persons in charge of undertakings, foremen and heads of workshops ;
salaried employees employed in commercial undertakings, banks,
offices, book-keeping and administrative work ; professional workers ;
and all other persons employed in any similar occupation.
3.—Length oí Holiday.
The minimum length of the holiday is seven consecutive days.
4.—Amount of Remuneration during Holiday.
Throughout the holiday, no reduction m a y be made in the worker's
wages, and the part of his remuneration paid in kind must be paid
as usual or equitable compensation granted. If during the holiday
a worker performs work either for himself or for others which is counter
to the purpose of the holiday, he loses all right to his remuneration for
the holiday. Dismissal for reasons for which the worker is responsible
cancels the right to a holiday with pay. If, on the other hand, t h e
employer is responsible for the cause of dismissal, he must p a y the
worker a sum equal to the number of days' holiday to which the latter
is entitled, in addition to any other compensation which m a y be due.
5.—Statistics.
During 1933, 71 undertakings granted holidays with p a y ; the
number of wage-earning and salaried employees occupied in these
undertakings was 121,170, while the total expenditure on annual
holidays was 9,579,138 pesetas.

SWITZERLAND
SUMMARY
PAGE

FIRST PABT:

Statistics of Population

SECOND PART : Social Insurance

426
...

...

I.—Workmen's Compensation

...

... 426

...

... 430

II.—Sickness Insurance

...

426

III.—Invalidity, Old-Age and Widows' and Orphans'
Insurance
...
...
...
...
... 432
IV.—Unemployment Insurance

...

... 441

V.—Subsidised Benefit Schemes for Staffs of Public
Undertakings ...
...
...
...
... 450
THIRD P A B T :

Social Assistance

458

I.—Non-Contributory Old-Age Pensions ...
II.—Assistance for the Aged
III.—Unemployment Relief

...

IV.—Assistance for the Infirm

...

... 465

...

... 465

...

... 473

...

... 473

...

... 474

V.—Medical Assistance for the Indigent
VI.—Maternity Assistance

...

... 458

...

VII.—Poor Relief

475

VIII.—Assistance for Swiss Citizens in Indigent Circumstances abroad ...
...
...
... 476
IX.—Health of School Children

477

X.—Assistance for Large Families ...

...

... 478

XI.—Sickness Benefit paid by Employers ...

... 478

XII.—Table summarising Social Assistance Charges
for 1933
479
FOURTH P A R T : Housing

479

FIFTH P A R T :

Family Allowances

481

SIXTH PART :

Holidays with Pay

...

483

426

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

FIRST

PART

STATISTICS OF POPULATION
CENSUS OF 1930
GAINFULLY

OCCUPIED POPULATION CLASSIFIED B Y BRANCHES O F ECONOMIC
ACTIVITY AND INDUSTRIAL STATUS

Branch of economic activity

Higher Lower
Indépen- salaried salaried
dants
ememployees ployees

Agriculture
193,864
561
Industry and handicrafts 134,499 12,092
Commerce, banking, insur47,932 9,727
ance
26,555 1,181
Hotels
Transports and communi4,343 1,635
cations ...
Public administration and
20,819
15,514
liberal professions
Domestic servants and day
16
workers
Staff of hospitals, boarding
622 4,192
schools, prisons, etc. ...
Gainfully occupied population
428,650 44,902
Total population

Workers

Apprentices

Total

2,826 221,732 1,835
79,117 581,933 59,396

420,818
867,037

86,992
12,026

33,662 12,000
55,372 1,187

190,213
94,321

29,049

48,509

1,462

84,998

13,585

1,571

102,394

50,905

140,350

399 139,935
5,127

32,043

511

42,495

264,341 1,126,791 77,962 1,942,626
4,066,400

...
SotiKOE : Statistical Year-Booh, 1935.

SECOND

PART

SOCIAL INSURANCE
I.—Workmen's Compensation
1.—Legal Basis.
Federal Act of 13 June 1911 concerning insurance against sickness
and accidents, Part I I ; amended by the Federal Acts of 18 June 1915,
19 October 1920 and 29 June 1927. Order I of 25 March 1916, Order
II of 3 December 1917, Order l a of 20 August 1920, Order 16 of
8 December 1922, Order Ic of 8 November 1927 and Order I I I of
2 March 1928.
2.—Scope.
The insurance covers salaried employees and workers employed
in Switzerland in industry, handicrafts, transport and navigation
(restrictive list of undertakings covered).

SWITZERLAND

427

3.—Administration.
The Swiss National Accident Insurance Fund is responsible for the
application of compulsory insurance. It is an independent establishment working on the mutual aid principle and enjoying full legal
personality. Its headquarters are in Lucerne and it has district
branches.
4.—Financial Resources.
The cost of insurance against occupational accidents is borne
entirely by the employers. The premiums vary according to the risk
group to which the undertaking belongs and according to the danger
of accidents in the work performed by the insured person.
The cost of insurance against non-occupational accidents is divided
between the insured persons, who pay three-quarters, and the public
authorities (the Confederation), who pay one-quarter.
5.—Benefits.
The insurance covers the risks of occupational and non-occupational
accidents.
The term " accident " is considered to include any disease solely or
mainly due to the action of any substance the production or use of
which is liable to cause serious diseases.
The substances which, within the meaning of the Act, may give
rise to occupational diseases for which benefits are payable are the
following :
Acetaldehyde, acetylene, acetylene tetrachloride (tetralin), acridine,
quicklime, alkalis (potash lye, soda lye, caustic potash, caustic
soda), alkaloids, formic acid (concentrated), ammonia, aniline
and its homologues, arsenic and its compounds, benzidine, benzine
(petroleum benzine), benzol (benzine or benzole), benzoylchlori.de and
benzoylbromide, lead, lead compounds and alloys, manganese peroxide,
tartar emetic, bromine, ethyl bromide, methyl bromide, calcium
carbide, carbolic acid (phenol), quinine, preparations and derivatives
of quinine, chlorine, ethyl chloride, chloroformic ester, chloride of lime
(bleaching powder), methyl chloride, chloroform, chlorate of potash,
chlorate of soda, sulphur chloride, chromium compounds, cyanogen
and its compounds, cyanamide and calcium cyanamide, diamines,
dianisidine, dimethyl sulphate, dinitrophenol, acetic acid (concentrated),
acetic anhydride, fluorine compounds (silicon fluoride, hydrofluoric
acid, hydro-fluosilicic acid, carbon tetrafluoride), formaldehyde,
hydroxylamine (phenylhydroxylamine), iodine, ethyl iodide, methyl
iodide, carbon monoxide, nitraniline, nitro- and chloronitro-compounds
of benzene and its homologues, nitroglycerine, gaseous oxides of
nitrogen, nitroso-diethyl-aniline, nitroso-cfimethyl-aniline, nitrosocresol,
nitrosophenol, methyl ether of paratoluenesulphonic acid, persulphates,
Phenylhydrazine, phosgene (carbonyl chloride), phosphorus (yellow
modification), chlorides of phosphorus, phosphoretted hydrogen,

428

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

picric acid (trinitrophenol), mercury and its compounds, nitric acid,
nitrites, hydrochloric acid, carbon disulphide, sulphide of soda,
sulphuric acid, sulphuric anhydride, sulphurous acid, sulphuretted
hydrogen, carbon tetrachloride, turpentine oil and turpentine
substitutes, tar and its gases and oils, pitch, toluidine, toluene
sulphochloride, trichlorethylene, chloride of tin, radium and its
compounds, mercury amalgams, anthrax virus.
In case of accident or occupational disease, insured persons are
entitled to benefits in kind and in cash.
(a) Benefits in hind.
These benefits comprise medical attendance and drugs, including
curative treatment, the provision and renewal of the necessary appliances, any nursing needed, and free transport if required. The
insurance institution may, instead of providing medical attendance
and drugs at home, have the insured person treated in hospital.
(b) Cash benefits to victims of accidents.
' 1. For temporary incapacity.—An insured person who is temporarily
unable to earn his living is entitled to a daily allowance equal to
80 per cent, of his wages (up to a maximum of 21 francs a day) from
the third day following the accident and during the whole of the
succeeding period of sickness.
2. For permanent partial incapacity.—An insured person who is
permanently and partially disabled is entitled to a pension in
proportion to the degree of incapacity.
3. For permanent total incapacity.—An insured person who is
permanently and totally disabled is entitled to an invalidity pension
fixed at 70 per cent, of his annual earnings (up to a maximum of
6,000 francs). If his infirmity is such that he must have constant
attendance and other special care, the pension may be increased so
long as that condition continues, but it may in no case exceed his
total earnings.
(c) Benefits to survivors in case of fatal accident.
If the accident involves the death of the victim, his survivors, that
is his widow (invalid widower) so long as she does not remarry, his
legitimate, legally adopted or legitimised children up to the age of
16 years, his parents and grandparents during their lifetime, and his
brothers and sisters up to the age of 16 years, are entitled to pensions.
1. Widmv or invalid widower.—A widow or an invalid widower is
entitled to a pension equal to 30 per cent, of the annual earnings of
the deceased insured person.
2. Orphans.—Each legitimate child, even if born posthumously, is
entitled to a pension equal to 15 per cent, of the annual earnings of
the insured person, until the child has completed its sixteenth year.
This pension is increased to 25 per cent, in the case of orphans who
have lost both parents.

429

SWITZERLAND

Children who, at the time of the accident, had been legally adopted
or legitimised are treated as legitimate children. The same is true of
illegitimate children in respect of rights deriving from the death of
their mother. The same abo holds good in respect of rights deriving
from the father of illegitimate children whose parentage has been
established in a court of law, or who have been recognised by the
insured person in a valid written statement.
3. Other survivors.—Ascendants in the direct line are entitled
during their life (and brothers and sisters up to the age of 16 only)
to a total pension of 20 per cent, of the annual earnings of the
insured person.
The total survivors' pensions may not exceed 60 per cent, of the
annual earnings of the deceased.
(d) Funeral benefit.
The principal fund also pays up to 40 francs towards funeral
expenses.
6.—Statistics.
The number of insured persons for 1933 is not known.
INCOME AND E X P E N D I T U R E FOB

1933

(in francs)
(a) Insurance against Occupational
Number of accidents

...

37,093,246
11,622,099
253,618
48,968,963

Total

Cash benefits
25,724,039
Benefits in kind
7,498,893
Administrative expenses ... 4,528,876
Total

(6) Insurance against Non-Occupational
Number of accidents

Total

... 37,751,808

Accidents

...

INCOME

Insured persons' contributions
Contributions of the public
authorities
Income from investments
Other income

130,395

EXPENDITURE

INCOME

Employers' contributions
Income from investments
Other income

Accidents

...

45,206

EXPENDITURE

9,741,349
3,238,307
4,063,979
939,714
17,983,349

Cash benefits
10,559,653
Benefits in kind
3,082,009
Administrative expenses ... 1,584,956
Other expenditure...
...
19,156

Total

15,245,774

430

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in francs)
ASSETS

LIABILITIES

Cash in hand
33,032
Postal cheque account ...
68,154
Securities ...
6,793
Cash in bank
2,758,700
Investments
345,543,927
Furniture and fittings ...
1
Real property
5,195,000
Contributions to be collected ...
3,797,684
Debit accounts
5,614
Pensions to be carried
forward
1,500,963
Interest
3,728,646
New account
150,581
Payments due to the Reserve fund by the nonoccupational accidents
branch of compulsory
insurance
63,874

Total

362,852,969

Working capital account
5,000,000
Reserve fund
20,249,085
Outstanding
accident
account
7,500,000
Capital to cover pensions 298,115,000
Premium reserves
1,953,896
Equalisation fund
3,059,449
Mortgages
1,500,000
Contributions to be refunded ...
3,765,801
Contributions
to
be
carried forward
8,815,121
Relief fund
219,373
Staff provident fund
12,305,934
Endowment for the building of houses ...
35,635
Outstanding items
83,675
Account for compulsory
insurance against occupational
accidents,
carried forward to new
account
250,000
Total

362,852,969

n.—Sickness Insurance
1.—Legal Basis.
Federal Act of 13 June 1911 concerning insurance against sickness
and accidents (Part I) ; Order I concerning sickness insurance, laying
down rules for the recognition of sickness funds and the examination
of their accounts, dated 7 July 1913, and Order II, laying down rules
for reckoning Federal subsidies, dated 30 December 1913; Federal
Orders of 3 July 1918, 20 December 1918, 14 February 1920, 21
December 1923, 22 December 1927 and 21 June 1932, concerning
special Federal subsidies.
Federal Act of 13 June 1928, concerning measures against tuberculosis (Section 15) and Order of 31 March 1931 regulating, in pursuance
of the said Act, the grant of subsidies to sickness funds and federations
of such funds.
The Confederation encourages sickness insurance by granting
subsidies to funds recognised by it. Any insurance fund complying
with the provisions of the Act may obtain recognition. So far as the
Confederation is concerned, insurance is optional, but within each
canton the public authorities may make insurance compulsory
either generally or for certain categories of persons, or again they may
transfer these powers to the communes.
2.—Scope.
Any person domiciled within the territory of the Confederation
may, in principle, become a member of a sickness fund if he satisfies the

SWrrZEKLAND

431

conditions laid down in the rules. In recognised funds Swiss citizens
may not be treated less favourably than other insured persons. The
funds are not permitted to discriminate between the sexes in admitting
insured persons.
The cantons can at present be divided into four groups as regards
•compulsory insurance :
(a) Cantons which have made sickness insurance compulsory for
certain groups of the population : Appenzell (Outer Rhodes), Appenzell
(Inner Rhodes), Basle Town, Fribourg, Geneva, St. Gall, Thurgau,
Vaud and Zug.
The cantons of Fribourg, Geneva and Vaud have made sickness
insurance compulsory for school children.
(b) Cantons which have delegated to the communes (or districts) the
right to make insurance compulsory : Berne, Grisons, Lucerne,
.Schaffhausen, Schwyz, Soleure, Ticino, Uri, Valais and Zurich.
Compulsory sickness insurance has been introduced by order of
the communes (or districts), chiefly in the cantons of Grisons, Ticino,
Soleure and Valais. The communes of the cantons of Soleure and
Valais have made insurance compulsory for children or school children.
In the cantons of Berne, Lucerne, Schaffhausen, Schwyz, Uri and
Zurich compulsory sickness insurance has been introduced by a certain
number of communes, including the city of Zurich.
(c) Cantons which have made sickness insurance compulsory within
their territory and have given the communes the right to extend the
obligation to wider circles of the population : Appenzell (Outer Rhodes),
Fribourg, St. Gall and Thurgau.
(d) Cantons which have not made use of the rights conferred upon
them by the Federal Sickness Insurance Act.—In the cantons not
mentioned in (a), (£>) and (c) above insurance is not compulsory either
for the population in general or for that of the communes.
3.—Administration.
Sickness insurance under the Federal Sickness and Accident
Insurance Act is aclministered solely by recognised funds, which may be
private funds organised as associations or as co-operative societies,
funds set up by institutions and public bodies (e.g., funds set up by the
communes for the insurance of their employees), and public funds
set up by decision of the cantonal or communal authorities for any
given group of persons.
4.—Financial Resources.
The resources of the funds comprise : the contributions of insured
persons (active members) ; the contributions of passive members ;
Federal subsidies; cantonal subsidies; communal subsidies; regular
subsidies or lump-sum payments by employers; gifts, legacies and
interest.
The insured person's contribution is calculated on the average
duration of sickness, which, for the population of Switzerland, is from
7 to 14 days a year, and on an estimate of the cost of medical treatment and drugs. The subsidies from the public authorities are in

432

INTEBNATIONAL SUBVEY OF SOCIAL SERVICES, 1933

proportion to the number of insured persons. Apart from the
ordinary subsidies, the Confederation grants a supplementary subsidy
to sickness funds in sparsely populated mountain districts where
communications are difficult; this supplementary subsidy may not
exceed 7 francs per insured person per year.
The Federal Act also makes provision for the granting of subsidies
to cantons or communes on behalf of institutions set up or subsidised
by them for decreasing the cost of treatment in case of sickness or
childbirth in mountain districts.
The Confederation also pays special subsidies to cantons and
communes which make insurance compulsory for the whole population
or for certain groups of persons, provided that they pay the whole or
part of the contributions for indigent insured persons. These subsidies
may not exceed one-third of the cantonal or communal expenditure.
5.—Benefits.
The benefits granted by the sickness funds may' include : sickness
benefit; the payment of the whole or part of the cost of medical
attendance ; the payment of the whole or part of the cost of drugs ;
the payment of the cost of a cure or treatment in a hospital ; assistance
to convalescents ; nursing bonus ; funeral benefit.
The Federal Council grants special subsidies varying between 0'50
and 3 - 50 francs for each day spent in a specified establishment, to
recognised sickness funds, and federations of these funds which
provide a supplementary benefit for members suffering from
tuberculosis.
6.—Statistics.
Number of insured persons in 1933 : 1,841,896.
INCOME AND E X P E N D I T U R E FOR

1933

(francs)
EXPENDITURE

INCOME

Contributions of insured/58,683,488
persons
\
253,458
Employers' subsidies
...
915,016
Contributions from the
public authorities :
(a) Confederation
... 10,141,740
(6) Cantons
3,202,976
(c) Communes
2,335,424
Income from investments
2,952,219
Other income
3,685,150
Total

...

82,169,471

Cash benefits :
(a) sickness
Benefits in kind :
(a) sickness
(6) maternity ...
Funeral benefit ...
Administrative expenses
Other expenditure
Total

TOTAL ASSETS AT 31 DECEMBER

All recognised funds

(6) maternity ...

...

24,055,710
1,664,695
463,419

{

42,204,712
1,358,613
642,384
7,087,859
1,422,101
78,899,493

1933

77,943,570 francs

HI.—Invalidity, Old-Age and Widows' and Orphans' Insurance
A.—FEDERAL LEGISLATION
The powers of the Confederation with regard to invalidity, old-age
and widows' and orphans' insurance are based on an Article of the
Constitution (Article 34 quai.tr). This Article, which was accepted

433

SWITZERLAND

by the nation (referendum of 6 December 1925), imposes on the
Confederation the obligation to set up, subject to certain conditions,
first of all old-age and survivors' insurance and, at some later date,
invalidity insurance1.
Since 1926 the revenue from the tobacco duty has been used, in
accordance with the Article of the Constitution referred to above, to
establish a fund for old-age and widows' and orphans' insurance. On
31 December 1933 the amount accumulated in that fund was
223 million francs.
B.—CANTONAL LEGISLATION
CANTON OF APPENZELL (OUTER RHODES)

Compulsory Old-Age Insurance
1.—Legal Basis.
Compulsory insurance was introduced by the Act of 26 April 1925,
supplemented by the Order of 24 November 1925.
2.—Scope.
Insurance is compulsory for all persons between the ages of 18 and
64 having their legal domicile in the territory of the canton.
3.—Administration.
Compulsory insurance is administered by the public old-age
insurance fund set up by the cantonal authorities.
4.—Financial Resources.
The cost of the insurance is covered by annual contributions from
the insured persons (10 francs a head), an annual subsidy from the
canton (1-50 francs per insured person) and an annual subsidy from
the communes (0-50 franc per insured person).
5.—Benefits.
The insurance covers the risk of old age and also provides that the
widow and children who are under age may obtain a refund of the
contributions paid (without interest) in the event of the premature
death of an insured person. The pensionable age is 65. The amount
of the pension varies according to the age of entry into insurance, the
age and the sex of the pensioner.
Minimum benefits
Maximum benefits

...

Men
fra.
200
400

Women
ire.
150
30O

The benefits are considerably lower in the case of insured persons
who were over the age of 40 years when the Act came into force.
1
An Act of 17 J u n e 1931 for the application of old-age and survivors' insurance was rejected by a referendum on 6 December 1931. Nevertheless the
Article of the Constitution remains in force.

G 14641

434

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

6.—Statistics.
Number of insured persons in 1933 : 27,717.
INCOME AND E X P E N D I T T O E F O B 1933

(in francs)
INCOME

Insured persons' contribu
tions
Cantonal contributions
Communal contributions
Income from investments ..
Total

EXPENDITUBE

267,055
129,204
24,488
334,195

Old-age pensions
Administrative expenses
Other expenditure ...

. 513,311
8,401
. 28,198

Total

. 549,910

754,942

CANTON OF B A S L E

TOWN

Compulsory Old-Age and Survivors' Insurance
1.—Legal Basis.
Cantonal Act of 4 December 1930 instituting old-age and survivors' insurance, amended 8 June 1933. Executive Order of
6 December 1932.
2.—Scope.
Insurance is compulsory for every person between the ages of
20 and 65 who has resided in the canton for two years without interruption, unless they are over 50 years of age at the end of the second
year of residence. Certain categories of persons, the number of whom
is limited (for instance, persons employed in foreign public services),
are exempted.
3.—Administration.
Compulsory insurance is administered by the Cantonal Old-Age
and Survivors' Insurance Fund. Recognised public and private
insurance institutions are placed on the same footing as the fund.
4.—Financial Resources.
The financial resources of the scheme are derived from : (1) contributions payable quarterly by insured persons, ranging from 5-00
to 9-35 francs per month for men, and from 4-20 to 7-80 francs for
women, according to age at the time of entry into insurance (married
women do not pay contributions during the marriage) ; (2) a cantonal
subsidy to cover part or the whole (from one to four quarters) of the
contribution due from persons of small means, and (3) cover provided
for the initial deficit and taking over of expenditure for relief for the
aged by the canton.
5.—Benefits.
The insurance covers the risks of old age and death. The following
benefits are payable :
(a) Old age.
A life annuity is paid to persons who have completed their
sixty-fifth year ranging from 180 to 720 francs for men and from

SWITZEELAND

435

150 to 600 francs for women, according to the number of years between
15 and 45 for which contributions have been paid. For married
Women the pension is reduced by one-half.
A reduced old-age pension is payable, on certain conditions, at the
age of 60 to unmarried men and women who are permanently disabled
and to widows who have lost their husbands after reaching the age
of 60.
(b) Death.
Up to the age of 18 years, children of insured persons who have
died receive a pension ranging from 300 to 1,000 francs according to
their number (one to five orphans or more).
Widows of insured persons receive an allowance of 500 francs
provided they are not already in receipt of an old-age pension at the
time of their husbands' death.
6.—Statistics.
Number of insured persons registered with the Cantonal Fund, or
with funds placed on the same footing, in 1933 : 66,132. Of these
51,518 were registered with the Cantonal Fund alone.
INCOME AND E X P E N D I T U R E FOB

1933

(in francs)
EXPENDITURE1

INCOME

Insured persons' contributions
1,165,765
State subsidies
1,275,753
Income from investments ...
491,278
Amounts transferred from
other t h a n official funds...
19,789
Emoluments
3,793

Total

Widows' allowances
Orphans' pensions ...
Re-purchase of expired insurance policies ...
Refund under t h e Act of
8 J u n e 1933
Payments to other t h a n
official funds (actuarial
reserves, differences on
contributions,
State
subsidies) ...

... 2,956,378

Total

40,000
20,425
42,884
278,248

350,479
732,036

Old-age pensions become payable for the first time when the oldest age category of insured
persons reaches the pensionable age. Indigent persons who are not insured and have reached the
pensionable age receive non-contributory pensions from the canton. The administrative expenses
are borne by the canton.
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in francs)
LIABILITIES

ASSETS

Initial deficit guaranteed b y
the canton
10,500,000
Mortgages ...
500,000
Securities ...
850,000
Current account with t h e
cantonal treasury
1,781,047
Loans to and amounts due
from insured persons ...
52,248
Cash in hand and postal
cheque a c c o u n t . . .
8,020
Interest due and other
assets
11,349
Total

13,702,664

Capital reserve including
emergency reserve
... 13,691,653
Other reserves
...
...
11,011

Total

13,702,664
Ke2

-A36

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
C A N T O N O F GLABITS

Compulsory Invalidity and Old-Age Insurance
1.—Legal Basis.
Invalidity and old-age insurance was established by the Cantonal
Act of 7 May 1916 as amended by the Order of 3 May 1925, and by an
Executive Order of 20 June 1917.
2.—Scope.
Insurance is compulsory for every person between the ages of
17 and 50 having a legal domicile within the territory of the canton.
Insurance does not extend to persons who are disabled or become
disabled during the first five years.
3.—Administration.
Compulsory insurance is administered by the public invalidity and
old-age insurance fund set up by the cantonal authorities.
4.—Financial Resources.
The cost of insurance is met by an annual contribution from the
insured persons (6 francs a year), an annual lump-sum subsidy from
the public authorities (85,000 francs), and a contribution from the
communes of 1 franc per insured person per year.
5.—Benefits.
The insurance covers the risks of old age and invalidity.
(a) Invalidity.
The right to an invabdity pension is acquired after a qualifying
period of five years. The amount of the pension varies from 150 to
300 francs.
(b) Old age.
The right to an old-age pension is acquired at the age of 65. The
annual pension varies from 180 to 300 francs.
8.—Statistics.
Number of insured persons in 1933 : 20,389.
INCOME AND E X P E N D I T U R E FOR

1933

(in francs)
INCOME

EXPENDITURE

Insured persons' contributions
122,074
Cantonal contributions
162,075
Communal contributions
35,653
Income from investments ... 331,581
Other income
1,000
Total

652,383

Invalidity pensions ...
Old-age pensions
Other expenditure

86,499
19,474
435

Total

106,408

INSURANCE FOR THE STAFFS OF
c- -COLLECTIVE
CERTAIN UNDERTAKINGS
In the absence of social insurance legislation against invalidity,
old age and death, a number of private employers have recognised

437

SWITZERLAND

the desirability of protecting their staffs against these risks. In the
case of undertakings with a large number of workers the insurance is
generally administered by works funds, some of which have the legal
status of associations, others of co-operative societies. Sometimes,
more especially when the employers have made themselves responsible
for practically the whole cost of insurance, these institutions take the
form of trust funds.
Collective insurance for the staffs of undertakings is also practised
by private life insurance companies in the form of group insurance,
under conditions determined by agreement between representatives of
the undertaking and the staff on the one hand, and representatives of
the insurance company on the other. Although group insurance may
be carried out through private companies which may be commercial in
character, the accounts for the collective insurance of the staffs of
undertakings are kept separately and the scheme has a definitely
social character.
The resources for collective insurance for the staffs of undertakings,
whether administered by a private fund or by an insurance company,
generally comprise employers' contributions, contributions from the
insured persons, and income from investments.
The risks covered are generally invalidity, old age and death, but
quite a number of institutions also provide for benefits in the case of
loss of employment. In works funds the benefits normally take the
form of pensions, but the agreements entered into with private
insurance companies quite often make provision for lump-sum benefits.
Statistics.
Number of insured persons in 1925 1 : 114,041.
INCOMB AND E X F E N D I T U B E FOB

1925

(in francs)
INCOME

EXPENDITURE

Ordinary
contributions
from insured persons ... 8,172,466
Ordinary
contributions
from employers ...
... 13,145,835
Payments in respect of
wage increments
and
entrance fees
...
... 2,144,369
Special payments by employers to constitute the
necessary capital reserve 9,743,180
Income from investments
20,753,694
Other income
802,719
Total

54,762,263

Benefits :
(a) lump sums ...
(6) pensions
Other benefits
Administrative expenses ..
Other expenditure

Total

1,729,000
9,769,001
432,672
83,346
385,589

12,399,608

Capital to meet the obligations of the insurance institutions :
436,696,340 francs.
1
As no fresh enquiry has been possible, only the figures from enquiries
carried out in 1925 can be given.

438

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1 9 3 3

D.—CANTONAL LIFE ASSURANCE
CANTON or NEUCHÂTBL

Subsidised Life Assurance
1.—Legal Basis.
Act of 29 March 1898 for the creation of a Cantonal Insurance
Fund ; Act of 15 May 1906 concerning the working of that institution.
2.—Scope.
All persons domiciled in the canton are entitled to become insured
voluntarily with the Cantonal Fund. Citizens of Neuchâtel domiciled
outside the canton can purchase annuities.
3.—Administration.
The Cantonal Fund, subsidised by the State, works strictly on the
principle of mutual aid. It practises under the most favourable
possible conditions various forms of life assurance with or without
medical examination, and it also tries to encourage thrift by offering
a sound organisation for that purpose.
4.—Financial Resources.
The Cantonal Insurance Fund obtains its resources from the insured
persons' premiums and cantonal subsidies. The premiums payable by
the insured persons depend on the age of entrance. The canton meets
all the administrative expenses of the Fund, including the cost of
medical examination of insured persons. It also covers the cost
of any increase in the risk resulting from the admission, without
increased premiums, of insured persons whose health is below normal.
The canton further pays a fraction of the annual premium of any
person becoming insured between the ages of 18 and 39 years.
5.—Benefits.
The Fund covers the risks of old age and death by various forms
of life assurance (mixed life assurance, assurance with premiums paid
for life or for a fixed term, annuity assurance, etc.).
A mixed life assurance policy can be obtained only after medical
examination, but the Fund also admits persons whose health is below
normal. Such persons must complete a qualifying period of three
years. If they die within that period, the premiums paid by them are
refunded to their survivors.
The capital sum insured may not be less than 100 francs or more
than 10,000 francs, and the annuity insured may not exceed 300 francs
a month.
6.—Statistics.
Number of insured persons in 1933 ...
Capital insured
Annuities insured

28,972
frs. 21,508,358
, 1,648,615

439

SWITZERLAND
INCOME AND E X P E N D I T U R E FOR 1933

(in francs)
EXPENDITURE

INCOME

Insured persons' contributions
State subsidy
Income from investments
Other income

Total

2,016,229
25,000
717,278
164,241

Payments to insured per
sons
Administrative expenses ..
Agents' expenses and com
missions ...
Other expenditure.
Amortisation

BALANCE S H E E T AT 31 D E C E M B E R

36,604
52,492
3,599
1,781,665

Total

2,922,748

1,575,208
113,762

1933

(in francs)
LIABILITIES

Cash in hand
18,568
Public funds
13,698,500
Mortgage credits ...
2,151,316
Real property
160,000
Loans on policies ...
490,926
Cantonal Bank
21,764
Debtor correspondents
36,216
Premiums due on 31 Dec.
1930
21,204
Furniture and fittings
1
Interest due
119,013
Total

16,717,508

Actuarial reserve for cur14,904,953
rent risks
Reserve for annuities to be
100,092
settled
Reserve for premium re4,414
ceipt books
1,000,000
Guarantee fund
Fund for distribution to
393,713
insured persons ...
301,145
Reserve and provident fund
12,000
Relief fund
1,191
Creditor correspondents ...
... 16,717,508
Total

CANTON OF V A U D

Subsidised Life Assurance
1.—Legal Basis.
Act of 2 December 1920 for the creation of the Pension Fund of
the Canton of Vaud.
2.—Scope.
Any person domiciled in the canton or any citizen of Vaud living
outside the canton may become a member of the Fund with a view to
obtaining a pension falling due between the ages of 50 and 65.
3.—Administration.
The Pension Fund of the Canton of Vaud is an independent insurance institution subsidised by the canton and working strictly on the
mutual aid principle.
4.—Financial Resources.
The resources of the Fund comprise the premiums due by the
insured persons and the subsidies paid by the canton. The premiums
are fixed in accordance with the age of entry into insurance.
The canton pays the administrative expenses by means of a fixed
allowance equal to 4 per cent, of the payments made under the system
of repayable or alienated contributions.

440

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Mutual aid institutions whose work is directly connected with the
operations of the Cantonal Fund also receive a cantonal subsidy to
cover the cost of collecting premiums.
The canton further participates in the constitution of old-age
pensions by paying a premium on behalf of every person in respect of
whom not less than 6 francs have been paid in the course of the year.
The annual premiums thus paid by the canton vary as follows :
6 frs. in respect of individual payments from 6 to 11.99
8
„
„
„
„
12 „ 23.99
10
„
„
„
„
24 „ 71.99
12
„
„
„
„
72 „ 120

frs.
„
„
„

5.—Benefits.
The insurance covers principally the risk of old age and subsidiarily
the risks of invalidity and death.
The old-age pensions are constituted by the payments made by
insured persons and the premiums granted by the canton. Payments
by insured persons are voluntary and may be made at any time. The
insurance may follow the principle of repayable contributions or that
of alienated contributions. Any insured person who is disabled
prematurely may request the immediate payment of a pension corresponding to his age and the premiums paid. The amount of the
pension is definitely fixed at the end of every year for all payments
made during the year on the basis of the rates in force at the date of
payment.
No pension may exceed 3,000 francs a year.
6.—Statistics.
Number of depositors (insured persons) in 1933 : 30,345.
INCOME AND E X P E N D I T U R E r o n

1933

(in franca)
INCOME

Payments by insured persons
Cantonal subsidies
Income from investments
Other income

EXPENDITURE

1,020,648
208,486
765,418
13,693

Pensions paid
Capital refunded ...
Administative expenses 1 ...
Other expenditure.

2,008,245

Total

135,995
24,838

—

39,332
200,165

The administrative expenses, which are borne by the canton, amounted to 44,428 frs. in 1933.
BALANCE S H E E T AT 31 D E C E M B E R

1933

(in francs)
ASSETS

Mortgage loans
Securities ...
Interest due
Postal cheques
Banque cantonale vaudoise
Crédit foncière vaudois
Other assets
Cash in hand
Total

LIABILITIES

14,963,912
3,917,637
160,002
54,356
248,709
60,914
334,245
36,501
19,776,276

Pension fund
16,266,984
Fund for contingent payments
112,459
Reserve fund
375,603
Invalidity fund
2,222,651
Reserve to meet differences
in rates ...
500,000
Credit current accounts ...
298,579
Total

19,776,276

SWITZERLAND

441

IV.—Unemployment Insurance
Unemployment insurance is regulated by Federal legislation and
•cantonal legislation.
The purpose of Federal legislation is to encourage the spread of
unemployment insurance by subsidising institutions which comply
with certain provisions.
Cantonal legislation comprises the various laws enacted by the
•cantons with a view to the application of unemployment insurance.
1.—Survey oí Legislation.
A. Federal Legislation
The activity of the Confederation in the field of unemployment
insurance is based on the Act of 17 October 1924.
The subsidies prescribed by this Act granted only to funds
recognised by the Confederation. These funds must not be carried on
for profit or for any purpose other than the relief of unemployment ;
they must have their own books and accounts and guarantee that
their moneys are administered in due form. The rules of the funds
must also contain definite regulations concerning the contributions
payable by insured persons and the benefits granted. The Act fixes
no minimum benefits, but it provides that the benefit to be paid to
unemployed members shall not exceed 60 per cent, of their normal
earnings. Persons who have no dependants for whose maintenance
they are responsible are granted 10 per cent, less than those who have
such responsibilities. Unemployment insurance must be restricted to
workers who are fit and willing to work but are prevented through
lack of employment. Consequently unemployment benefit is paid
only to insured persons who have become unemployed through no
fault of their own and have been unable to find other work. The
insured person is therefore obliged to produce a statement from his
last employer certifying the reasons for his unemployment, and he
must also register with a public employment exchange. In the case
of certain trades the competent Federal authorities may recognise
registration with a trade employment exchange. Benefit can be
claimed only by insured persons who have been members of the fund
for 180 days and have regularly paid their contributions. The claim
cannot be made until three days after registration with the public
employment exchange. When unemployment is the result of a
collective labour dispute, no benefit can be paid during the dispute or
for 30 days thereafter. The right to benefit lapses after 90 days
during any period of 360 days, but in the case of prolonged trade
depression the Federal Council may extend this period. In accordance
with the Act the rules of the funds must prescribe that no benefit shall
be paid to persons who have not accepted suitable employment, who
fail to comply with the regulations regarding supervision, or who in
any way try to procure benefit unlawfully. Unemployment insurance
funds are entitled under certain conditions to grant benefits to persons
working short time.

442

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1 9 3 3

The Federal subsidy is in proportion to the amount of the daily
benefits paid by the funds under their rules. It is equal to 40 per
cent, of these benefits in the case of public funds and joint funds
(managed jointly by employers and workers) and 30 per cent, in the
case of trade union funds. During a period of depression the Federal
Assembly may increase the rate by not more than 10 per cent. The
subsidy is paid to funds after. examination of the annual balance
sheet. The authority responsible for supervision is entitled to inspect
the accounts at any time. The Act further contains provisions for
guaranteeing that the subsidies are used in a reasonable manner. The
Federal Council is empowered to issue orders prescribing conditions
concerning free transfer from one fund to another, minimum
membership, etc. Thus, it has fixed the minimum membership at 200.
Under the Federal Act aliens domiciled in Switzerland are treated
in the same way as nationals, but section 11, paragraph 2, prescribes
that the Federal Council may refuse or reduce the subsidy in respect of
aliens whose country of origin treats Swiss nationals less favourably
in respect of unemployment relief than its own nationals, or aliens in
whose country of origin there is no equivalent system of unemployment
relief. Any agreement entered into by Switzerland with another
State guaranteeing to the citizens of that State the same treatment in
respect of unemployment insurance as is granted to Swiss citizens is
binding on every fund. Up to the end of 1933 Switzerland had entered
into agreements guaranteeing equality of treatment in respect of
unemployment insurance with the following States : Germany,
Austria, Denmark, Italy, Poland, Czechoslovakia, the Netherlands,
Great Britain, the Irish Free State, and France. At the same date
the Federal Council had issued three Orders under the Act : the first
dated 9 April 1925, the second 20 December 1929 and the third 26
September 1932. The Order of 20 December 1929 lays down a certain
number of new principles which were felt to be indispensable. The
minimum number of insured persons in any fund has been fixed at 200.
whereas formerly there was no limit. In order to enable funds which
did not reach this number to increase their membership, a transitional
period was prescribed, which expired on 1 January 1932. The Order
also lays down the principle that an insured person who withdraws
from a fund may retain his insured status for one year from that date
and it revises the older regulations concerning free transfer from one
fund to another. The Order of 26 September 1932, which the authorities had to issue owing to the great increase in unemployment and the
fall in wages, provides, among other things, that unemployment benefit
shall be calculated with reference to the normal amount the insured
person would earn were he normally employed. I t also contains provisions to facilitate the transfer of unemployed persons to other cantons
and localities, and, in certain circumstances, makes it compulsory for
them to follow approved occupational training courses. Lastly, the
Order introduces the notion of " isolated membership " of an unemployment fund, thereby enabling a member of a joint fund, who. because he is unemployed, can no longer be considered to be insured, to
remain a member of the fund for a transitional period of three years.

SWITZERLAND

443

B. Cantonal Legislation.
In accordance with the intention of the Federal legislation, the
cantons began immediately after the promulgation of the Federal Act
to encourage the development of unemployment insurance. AD but
one of the twenty-five cantons in the Confederation had issued regulations concerning unemployment insurance by the end of 1933. The
only exception was the canton of Upper Unterwaiden, the small
population of which is almost entirely engaged in agriculture.
Although the legal position with regard to unemployment insurance
differs considerably from one canton to another, they may be classified
into three groups as follows :
(a) cantons which have made insurance compulsory for a section
of the population and have set up a public cantonal fund, subsidised
by the canton, like private funds;
(6) cantons which subsidise funds and empower the communes to
make insurance compulsory in their respective areas;
(c) cantons which subsidise unemployment insurance funds either
in virtue of legislation or by periodical decisions.
(a) Cantons which have made insurance compulsory for a section of the
population and have set up a public cantonal fund, subsidised by
the canton, like private funds.
Canton of Appenzell {Outer Rhodes).—By virtue of an Act of 26
April 1933, repealing the Act of 25 April 1926, all wage-earners between
the ages of 18 and 65, domiciled in the canton are required to insure
against the economic consequences of unemployment. Compulsory
insurance does not extend to persons having a private income (3,600
francs a year for men and 2,400 francs a year for women), persons employed in public service, domestic service, agriculture, forestry, and the
hotel industry, or to apprentices, pedlars, commercial travellers, etc.
The canton has set up a cantonal fund, the resources of which are
derived from insured persons' contributions, a cantonal subsidy
(30 per cent, of the benefits paid), communal subsidies (10 per cent.)
and a Federal subsidy (40 per cent.). I t also pays to private funds a
subsidy of 25 per cent., while the communes pay them a subsidy of
10 per cent.
Canton of Basle (Rural).—On 23 June 1930 the Grand Council
adopted an Unemployment Insurance Act which came into force on 1
January 1931. Under this Act, insurance is compulsory for all persons
between the ages of 16 and 65 who are regularly employed in the
service of another person, have resided in the canton for over a year
and have been actively employed for at least 150 days during the
year preceding their application for membership of an insurance fund.
Insurance is not compulsory for persons engaged in certain specified
occupations (public service, domestic service, agriculture, home work,
commercial travelling, etc.), or for persons whose income exceeds
a certain limit (5,000 francs for men and 4,000 francs for women).
By virtue of this Act the canton has set up a Public Unemployment
Fund, the chief purpose of which is to administer compulsory insurance. It grants the fund a subsidy equal to 25 per cent, of the benefits

444

INTERNATIONAL SURVEY Oï SOCIAL SERVICES, 1933

paid, while the communes grant a subsidy of 10 per cent. Employers
pay a contribution of 1£ per mille of the earnings of the workers employed in their undertakings. This contribution is paid into the
Cantonal Employment Office. Private funds receive a cantonal
subsidy equal to 20 per cent, of the allowances paid and a communal
subsidy of 10 per cent.
Canton of Basle Town.—Unemployment insurance was established
by the Act of 11 February 1926, amended on 27 January 1927. Every
person of 16 years or over regularly employed in the service of another
person is, as a general rule, liable to insurance if domiciled in the canton
for one year and employed for not less than 180 days. Persons in
certain occupations (domestic servants, home workers, pedlars,
commercial travellers, etc.) and those whose income exceeds a limit
laid down in the Act are exempt.
A cantonal fund established in 1906 and reoiganisèd in 1926 has
for its chief purpose the work of administering compulsory insurance.
The canton pays to it a subsidy equal to 45 per cent, of the benefits paid.
Any deficit is met by a special subsidy. Employers pay a contribution
of 1\ per mille of the earnings of their workers who are liable to
compulsory insurance. This contribution is paid into the cantonal
emergency fund. Private funds also receive a subsidy of 45 per cent.
of the benefits paid.
Canton of Geneva.—Under an Act of 25 September 1925, the canton
grants insurance funds a subsidy equal to 40 per cent, of the unemployment benefit paid to insured persons resident in the canton. An
Act of 27 September 1930 made insurance compulsory for all persons
between the ages of 18 and 65 who have been resident for not less than
a year in the territory of the canton and are regularly employed in
the service of another person. Insurance is not compulsory for
officials, employees and workers employed by public departments,
apprentices, domestic servants, day labourers, agricultural labourers
and persons whose income exceeds a certain figure.
The canton has set up a fund which has legal personality and is
supervised by the State. This fund receives the same subsidies as are
paid to private funds.
Canton of Glaras.— The Act of 1 May 1932, which came into force
on 1 Januarjr 1933, made insurance compulsory for all workers employed in undertakings covered by the Federal Factory Act or by the
cantonal Workers' Protection Act. Insurance is not compulsory for
persons engaged in industry or trade who are related in the ascending
or descending line to their employer, or for cantonal and communal
officials, hotel staff apprentices, seasonal workers, and salaried
employees whose income exceeds 3,500 francs a year.
The canton has set up a fund the financial resources of which are
derived from insured persons' contributions (4 per mille of normal
average earnings), employers' contributions (3 per mille of normal
average earnings), Federal subsidies (40 per cent, of the benefits paid),
a cantonal subsidy (20 per cent.) and a communal subsidy (10 per cent.).

SWITZERLAND

445

Private funds receive a cantonal subsidy of 20 per cent, and a communal
subsidy of 20 per cent. The State Council may reduce the amount of
the latter subsidy by 5 per cent, in the case of communes faced with
financial difficulties or severe unemployment.
Canton of NeucMlel.—The Act of 17 May 1926 provides that any
person of Swiss origin normally employed for remuneration by one
or more employers and domiciled in the canton for not less than one
year is hable to unemployment insurance if he is between the ages of
16 and 60. Persons whose capital or income exceeds a certain figure,
apprentices, and certain categories of employed persons (officials,
domestic employees, agricultural labourers, seasonal workers, etc.)
are exempt from this obligation.
In conformity with the Act, the State Council of the canton set up
a cantonal fund to which it refunds 20 per cent, of the insurance benefits
paid. If the Federal Assembly temporarily raises its rate of subsidy, the
cantonal subsidy is increased to 25 per cent, of the unemployment
benefits. The joint funds receive a subsidy of 20 per cent, and trade
union funds receive 15 per cent. If the Confederation temporarily
raises its rate of subsidy, the cantonal subsidy is increased by an
amount equal to one-half the supplementary Federal subsidy. Employers are bound to contribute to unemployment insurance, paying
an annual contribution of 6 francs in respect of every worker liable
to insurance.
Canton of St. Gall.—An Act of 8 July 1931, which came into force
on 1 January 1932, made insurance compulsory for all wage-earners
between the ages of 17 and 60, domiciled in the canton. Insurance
is not compulsory for officials, domestic servants, agricultural workers,
home workers whose earnings are less than 900 francs a year, commercial
travellers, pedlars, foreign seasonal workers, persons having a certain
income, etc.
Under the Act, communes are required either to set up a public fund
or to join an existing fund. Both public and private funds receive
from the canton a subsidy equal to 25 per cent, of the benefits paid and
from the communes a subsidy of 15 per cent.
Canton of Schaffhausen.—The Act of 9 July 1928 makes insurance
compulsory between the ages of 18 and 60 for every person domiciled
for six months in the canton and employed there. Exemptions are
granted to persons belonging to certain occupations (officials, domestic
employees, home workers, commercial travellers, hawkers, etc.) and
to persons possessing a certain capital or income.
The cantonal fund set up in accordance with the above Act receives
from employers a contribution of 2 per mille of the wages of their
insured workers. Public funds and private funds receive from the
canton an annual contribution of two francs for each insured person.
The communes also pay an annual contribution of one franc for each
insured person. The canton grants to private funds a subsidy equal to
60 per cent, of the Federal subsidy.

446

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

Canton of Soleure.—Unemployment insurance was introduced by
the Act of 31 October 1926, which made insurance compulsory for all
persons between the ages of 16 and 65 years domiciled in the canton
and normally employed there. Exemptions are provided for persons
in certain occupations (domestic servants, home workers, officials, etc.)
and for persons with a certain capital or income.
The cantonal fund receives a subsidy from the canton equal to 25
per cent, of the benefits it pays. Private funds receive the same
subsidy, which may be increased by 10 per cent.
Canton of Thurgau.—On 30 December 1930 the Grand Council of
the canton passed an Act regulating unemployment insurance. The
Act came into force on 1 January 1931 and made insurance compulsory
for all wage-earners between the ages of 16 and 65, domiciled in the
canton and working in an undertaking covered by the Federal Factory
Act. The State has set up a fund, the activities of which cover the
whole canton and also grants to all funds recognised by the Confederation a subsidy equal to 30 per cent, of benefits paid.
Canton of Lower Unterwaiden.—On 30 April 1933, the '' Landsgemeinde " of the canton passed an Unemployment Insurance Act
making insurance compulsory for all wage-earners between the ages
of 18 and 65 who have resided in the canton for six months. Insurance
is not compulsory for persons with an income of more than 3,000 francs
or capital exceeding 15,000 francs, officials, domestic servants, agricultural workers, hotel staff, etc. The canton has set up a public fund,
the financial resources of which are derived from insured persons'
contributions, employers' contributions (one franc per month per
insured person employed in the undertaking), a cantonal subsidy (20
per cent, of benefits paid), communal subsidies (10 per cent.), a
Federal subsidy (40 per cent.). When the reserve fund is inadequate,
the deficit is covered by the canton and the communes to the extent
of 60 and 40 per cent, respectively.
Joint funds may obtain a cantonal subsidy, the amount of which
is fixed by the State Council.
Canton of Uri.—The Act of 6 May 1928, which came into force on
1 July 1929, makes insurance compulsory for all workers between the
ages of 17 and 65 working in an undertaking in the canton which is
covered by the Federal Factory Act. The Grand Council may extend
compulsory insurance to workers in other undertakings.
A public cantonal fund was set up for the special purpose of
administering compulsory insurance. Its resources comprise contributions from insured persons, contributions from the employers (six
francs per worker per year) and Federal (40 per cent.) and cantonal
(20 per cent.) subsidies. The communes must pay a share of the
subsidy paid by the canton. During times of depression the rate of
the cantonal subsidy may be increased to 30 per cent. Private funds
recognised by the Confederation (joint or trade union funds) also
receive a subsidy equal to 20 per cent, of the benefits paid to insured
persons living in the canton who have worked in an undertaking in
the territory of the canton.

447

SWTTZEBLAND

Canton of Zug.—Unemployment insurance was introduced by the
Act of 13 October 1927, which makes it compulsory for all workers
between the ages of 16 and 65 years employed in an undertaking
covered by the Federal Factory Act. Persons whose annual income
exceeds 6,000 francs or whose capital exceeds 40,000 francs are exempt.
The canton has set up a public fund to deal with compulsory insurance and grants it a subsidy equal to 20 per cent, of the benefits paid.
This subsidy may be raised to 30 per cent, during times of depression.
The canton also meets any deficit which may exist after the reserve
fund has been exhausted. The fund collects a contribution of six
francs per worker per year. Private funds normally receive a cantonal
subsidy of 20 per cent, of the benefits paid under the rules.
(b) Cantons which subsidise funds and empower the communes to make
insurance compulsory in their respective areas.
Canton of Berne.—Under the Unemployment Insurance Act of 6
December 1931, repealing the Act of 9 May 1926, the canton grants
public funds, joint fluids and trade union funds a subsidy calculated
with reference to the benefits paid by the funds to their members
resident in the canton. The subsidy varies with the insurance risk and
the amount of the average yearly contribution paid by insured persons.
The insurance risk is measured by the percentage ratio of between
the number of days worked by insured persons during the year and
the number of days for which benefit was paid.
The cantonal subsidy is fixed with reference to the index obtained
by multiplying the insurance risk by the average yearly contribution,
as follows :
Index
0—70
70—87
87—104 .
104—121 .
121—138 .
138—155 .
155—172 .
172—189 .
189—206 .
206—223 .
223—240
.
240—257
.
257—274 .
274 and over

Cantonal subsidy
per cent.
12
13
14
15
16
17
18
19
20
21
22
23
24
25

The commune of residence of the insured person is required to
contribute towards the cost of unemployment insurance by granting
the fund a subsidy equal to that paid by the canton.
The communes are at liberty to make unemployment insurance
compulsory for certain occupations or categories of persons. Insurance
cannot, however, be made compulsory for officials, domestic servants,
men and women employed in agriculture and forestry, porters, home
workers, pedlars, commercial travellers, and apprentices.

448

INTERNATIONAL STOVE Y OF SOCIAL SERVICES, 1 9 3 3

For purposes of unemployment insurance, communes are required
to set up a public fund or to join an existing pubhc fund. Seventeen
communes or groups of communes have set up pubhc funds. In the
case of nine funds, the activities of which cover 32 communes,
insurance is compulsory.
Canton of Fribourg.—Under the Act of 13 November 1928, amended
by the Act of 15 November 1932, the canton grants unemployment
funds a subsidy calculated with reference to the following factors :
membership of the fund, normal number of days worked per year,
number of days of benefit, average annual contribution of member»
and, in the case of joint funds, of employers, and total unemployment
benefit paid by the fund. The insurance risk is measured by the ratio
between the number of days of benefit multiplied by 100 and the
membership of the fund multiplied by 300. The figure so obtained is
multiplied by the average annual contribution actually paid by
members ; this gives the index on which the cantonal subsidy,
expressed as a percentage of the total number of contributions paid,
is based, as follows :
Index
O t o 100
101 to 200
201 to 300
301 and over

Publio and
joint funds
per cent.
8
14
20
26

Other
funds
per cent.
4
6
8
10

The commune of residence of the unemployed person pays the
unemployment insurance fund a subsidy equal to 50 per cent, of the
cantonal subsidy, provided he has been resident there for at least three
months. The communal subsidy for unemployment before this period
of three months is payable by the commune in which he was previously
resident.
The cantonal subsidy is granted only in respect of benefit paid by
the funds, between 15 December and 31 March, to unemployed persons
over 18 years of age who have resided in the canton for more than
three years and support persons for whose maintenance they are
legally responsible. In the rural communes unmarried persons may
not receive benefits before they have reached the age of 20. The
subsidy in respect of benefits paid to unmarried persons who are in
fact legally responsible for supporting dependants amounts to 2 francs
per day.
Up till the end of 1933 no commune had introduced compulsory
insurance, except the municipality of Fribourg in respect of workers
in the building industry.
Canton of Lucerne.—Under the Act of 25 November 1929 amended
by the Act of 28 December 1932, recognised pubhc and private funds
receive a subsidy equal to 20 per cent, of the benefits paid. The
percentage may be raised to 30 in a period of depression. The funds
also receive a subsidy from the communes. Employers are required
to pay the Cantonal Emergency Fund a contribution of 1 per mille of
the wages paid to workers employed in their undertakings. By the
end of 1933, insurance was compulsory at Lucerne, Emmen, Kriens,
Littau and Horw, where public funds had also been set up.

SWITZERLAND

449

Canton of Ticino.—The Act of 25 November 1929 guarantees to
public and private funds recognised by the authorities a subsidy equal
to 10 per cent, of insurance benefits. During times of depression the
subsidy may be temporarily increased to 15 per cent. Up to the end
of 1930 none of the communes had made insurance compulsory or
instituted public funds.
Canton of Valais.—The Act of 11 January 1928 guarantees to
public and joint funds a subsidy equal to 30 per cent, of the benefits
and to trade union funds a subsidy equal to 10 per cent, of the
benefits. By the end of 1930 no communes had set up public funds
or introduced compulsory insurance.
Canton of Vaud.—Under the Act of 27 November 1928, as amended
by the Act of 18 November 1931, the canton pays to public and joint
funds a subsidy equal to 30 per cent, of the benefits paid and to trade
union funds a subsidy equal to 2 2 | per cent. The commune of Vevey
is the only one which has set up a public fund ; no commune has
introduced compulsory insurance.
Canton of Zurich.—In accordance with the Act of 30 January 1928
the canton encourages the development of unemployment insurance
by paying a uniform subsidy to public and private funds equal to
25 per cent, of the benefits paid.
The communes are empowered to grant subsidies to recognised
funds. At the end of 1933 two large communes, the municipalities of
Zurich and Winterthur, had set up communal funds and some twenty
other communes were paying subsidies.
(c) Cantons which subsidise funds either in virtue of legislation or by
periodical decisions.
Canton of Appenzell (Inner Rhodes).—In accordance with an Order
of 27 December 1927 the canton refunds to unemployment insurance
funds 20 per cent, of the benefits paid, provided that one-half of the
subsidy is returned to it by the poor relief fund.
Canton of Aargau.—The canton subsidises unemployment insurance
funds. Under an Act of 28 November 1928 the subsidy is equal to
20 per cent, of the benefits.
Canton of Grisons.—By a Decree of 27 May 1927 the canton pays to
unemployment insurance funds an annual subsidy equal to that paid
by the Confederation but not exceeding a total of 20,000 francs.
Canton of Schwyz.—By virtue of an Order of the Grand Council,
dated 28 December 1928 and amended by an Order of 25 July 1933,
the following subsidies are granted to public and private funds by
the canton :
15 per cent, of benefits paid between 15 November and 31 March
to insured persons who are married or widowers and have 4 young
children dependent on them ; benefit may in no case exceed 7 francs
per day ;
1

The Act of 9 H a y 1926 was repealed by a new Act of 6 December 1931.
G 14641

450

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

15 per cent, of benefits paid between 15 November and 31 March
to insured persons who are married but have no children or only
1 to 3 children, and to widowers with 1 to 3 children ; benefit may in
no case exceed 6 francs per day ;
5 per cent, of benefits paid between 15 November and 31 March
to unmarried persons ; benefit may in no case exceed 3 francs per day.
2.—Statistics.
Number of funds (public, joint and trade union) in 1933 ...
Number of insured persons in 1933
INCOME AND E X P E N D I T U R E FOB

195
533,218

1933

(in francs)
INCOJIE

EXPENDITURE

Federal subsidies
26,300,000 Benefits paid by the funds
Cantonal and communal
subsidies
28,500,00o 1
Insured persons' contributions
14,709,394
Employers' contributions
985,606
Other income
...
...
—2
Total
1
2

70,495,000

Total

68,000,000

Estimate.
No information is available.

V.—Subsidised Benefit Schemes for Staffs of Public Undertakings
A.—SICKNESS, INVALIDITY, OLD-AGE AND WIDOWS' AND
ORPHANS' INSURANCE FOR THE STAFF OF THE
FEDERAL RAILWAYS
1.—Legal Basis.
This insurance scheme is based on the provisions of Federal
legislation concerning the acquisition, working and administrative
organisation of the railways on behalf of the Confederation, and more
especially on the Act of 15 October 1897.
2.—Scope.
Insurance is compulsory for the whole staff (salaried employees and
workers) of the Federal railways.
3.—Administration.
The insurance scheme is administered by a single institution, the
Staff Pension and Welfare Fund of the Federal railways. This
institution is part of the general administration of the Federal railways,
but has separate accounts. The various categories of the staff are
directly represented.
4.—Financial Resources.
The resources of the Fund are supplied jointly and as required by
the administration of the Federal railways and the insured persons.
Its ordinary resources also include interest on investments.

451

SWITZERLAND

The Federal railways pay an ordinary annual contribution at
present equal to 15 per cent, of the annual remuneration (as assessed
for insurance purposes) of the insured persons. They also make a
further contribution, equal to five monthly instalments of any increment in wages, as well as certain exceptional payments. They are
also entirely responsible for the administrative expenses and for any
deficit which may occur. The administration of the Federal railways
guarantees the obligations undertaken by the Fund towards its
members.
The insured persons pay an annual contribution of 5 or 6J per cent.
(5i, 6¿ or 6 | per cent, in the case of train staff) of their annual earnings
as assessed for insurance purposes and a further contribution equal to
four or five monthly instalments of any increment in earnings.
The Fund also receives any disciplinary fines inflicted on insured
officials, employees or workers, any sums obtained by the sale of lost
property which remains unclaimed, and any gifts or legacies.
5.—Benefits.
The Fund insures the staff of the Federal railways against the
economic consequences of sickness, invalidity, old age, death, or loss
of employment. The cash benefits in the case of sickness are granted
temporarily as required. Pensions are paid to disabled persons, old
persons and surviving dependants.
In the case of loss of employment or death before a certain period
of service has been completed, a lump sum is paid. No provision is
made for benefits in kind.
6.—Statistics.
Number of insured persons in 1933 : 31,182.
INCOME AND E X P E N D I T U R E FOK 1933

(In francs)
INCOME

Insured persons' contributions
Contribution from the
Federal railways
Income from investments
Special receipts ...
Income from the Savings
Deposits Account
Income of t h e Relief Fune
Account
Other income
Total

ExPENDITUBE

{
{

10,128,998
113,286
24,542,641
222,963
13,406,902
7,312,417
78,508
233,751
1,245
56,040,711

Sickness benefit
612,292
Invalidity, old-age and
45,704,029
survivors' pensions
94,795
Relief
Lump-sum benefits
72,728
Expenditure of the Savings
Deposits Account
202,742
Expenditure of the Relief
Fund Account ...
717,888
Other expenditure...
367,793
Total

47,772,267
Ff 2

452

INTERNATIONAL SUBVEY OF SOCIAL SERVICES, 1933
BALANCE SHKET AT 31 DECEMBER

1933

(in francs)
ASSETS

1. Holdings
(securities,
mortgage loans and
cash)
335,425,419
2. Credit interest not yet
due
40,962
3. Increase of reserves required a t 31 December 1933
362,287,301
Total
... 697,753,682

LIABILITIES

1. Actuarial reserves lequired
696,370,480
2. Savings deposits
...
1,112,717
3. Relief Fund
270,485

Total

... 697,753,682

B.—SICKNESS, INVALIDITY, OLD-AGE AND WIDOWS' AND
ORPHANS' INSURANCE FOR THE STAFFS OF TRANSPORT
UNDERTAKINGS HOLDING CONCESSIONS
1.—Legal Basis.
Private transport undertakings holding a concession from the
Confederation are, with few exceptions, bound by their concession to
establish an insurance fund for their staffs or to insure them with an
insurance company.
The clauses of the concessions on this subject are not uniform.
Older concessions made it compulsory for transport undertakings
merely to set up a sickness and relief fund, but more recent ones have
made it compulsory for them to establish a superannuation or pension
fund for the staff whenever annual earnings exceed 4 per cent, of the
share capital for three consecutive years.
2.—Scope.
The insurance must, as a general rule, cover the whole staff of the
undertaking in question. The insurance institutions set up are
governed by the provisions of the Federal Act of 28 June 1889
concerning the welfare funds of railway and shipping companies.
3.—Administration.
The funds that have been set up may be classified in three groups :
(a) sickness funds ;
(6) provident funds ;
(c) pension funds (covering the risks of invalidity, old age
and death).
The form in which the funds are organised (as associations,
co-operative societies or trusts) is optional. Most of the funds
have no legal capacity, but they are administered separately as part of
the general assets of the undertaking in question permanently set aside
for the purposes of insurance.
Transport undertakings holding a concession from the Federal
authorities may insure their staff with existing employers' or workers'
funds, or with commercial insurance companies.

453

SWITZERLAND

4.—Financial Resources.
The cost of insurance is borne jointly by the management and the
staff, generally in the proportion of -fa and fa respectively.
5.—Benefits.
As a rule these institutions cover the risks of sickness, invalidity,
old age and death.
The benefits are defined in the constitution or rules of the fund, and
vary from one institution to another. They are usually proportionate
to waxes.
6.—Statistics.

Number in 1933
Insured
persons
8,142
1,069
11,143

Funds
66
64
101

Sickness funds
Savings and provident funds
Pension funds

231
No total can be given since some of the insured persons are affiliated to two funds.
INCOME AND E X P E N D I T U R E F O B 1933

(in francs)
EXPENDITURE

INCOME

Insured persons' contributions
Contributions of the undertakings ...
Miscellaneous receipts
Payments b y insurance
institutions

3,807,606
5,905,925
3,984,379

Relief of various kinds ...
Refunds to members
...
Miscellaneous expenses ...
Payments
to
insurance
institutions

2,807,022
Surplus receipts

Total

16,504,932

Total

7,173,298
335,161
415,266
4,592,712
12,516,437
3,988,495
16,504,932

Assets of Independent Funds and Surplus Receipts from Transactions with
Insurance Institutions and General Funds
francs
Assets a t beginning of 1933
81,534,847
Surplus receipts for 1933 ...
3,988,495
Assets a t 31 December 1933

85,523,342

C—INSURANCE FOR THE STAFF OF THE POSTAL, TELEGRAPH
AND TELEPHONE SERVICE
(a)

W O R K M E N ' S COMPENSATION

1.—Legal Basis.
Compulsory insurance against accidents is based on the Federal
Act of 13 June 1911, the supplementary Act of 18 June 1915, the
Order of the Federal Council of 11 March 1918, and Orders 1 and 2 of
the Federal Council of 25 March 1916 and 3 December 1917.

454

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

2.—Scope.
The whole postal staff and the persons employed on the construction
of telephone and telegraph apparatus are insured against industrial
and other accidents. Persons nominally in charge of small branch
offices who do not perform the work themselves or do so only in
exceptional cases, as well as persons engaged privately, and persons
not working more than half the normal working hours, are not insured
against non-industrial accidents.
Officials and salaried employees of the Telegraph and Telephone
Service Who are not affiliated to the National Fund, that is, telegraphists,
supplementary female staff and persons employed in the distribution
service receive compensation for occupational accidents as if they
Were insured. In the case of non-occupational accidents, they receive
sick pay as in cases of ordinary sickness (see page 432).
3.—Administration.
Compulsory insurance against accidents is administered by the
Swiss National Accident Insurance Fund in Lucerne, which works
through two agencies, one for the postal staff, and the other for the
telegraph and telephone staff. The Federal Postal, Telegraph and
Telephone Service is its own insurance institution in respect of the
supplementary benefits granted to the staff under the Order of the
Federal Council of 11 March 1918.
4.—Financial Resources.
The resources of the National Accident Insurance Fund are obtained
from premiums paid by the Postal, Telegraph and Telephone Service
and subsidies from the Confederation.
5.—Benefits.
The insurance covers the risks of occupational and non-occupational
accidents.
The benefits guaranteed to the postal staff and to persons engaged
in the construction of telephone and telegraph apparatus are of two
kinds. They are in the first place ordinary benefits in cash and in
kind, guaranteed by the general accident insurance scheme (Act of
13 June 19111), and in the second place supplementary benefits paid
by the Postal, Telegraph and Telephone Service.
In accordance with the Order of the Federal Council of 11 March
1918, the Service pays full wages for the first and second day of the
accident, and adds to the ordinary benefits paid by the National Fund
a supplement equal to 20 per cent, of the earnings, a supplement for
invalidity in the case of industrial accidents equal to 42.9 per cent, of
the invalidity pension, a supplement to the survivors' pensions in the
case of death due to an industrial accident which is fixed according to
circumstances (Staff Regulations 1, section 59), and a supplement of
60 francs for funeral expenses in the case of an industrial accident.
In the case of insured persons whose annual salary exceeds
6,000 francs, the supplementary allowances paid by the Service bear
the same proportion to the fraction of their salary exceeding 6,000
1

Of. Second Part, I.—Workmen's Compensation, page 426.

455

SWITZERLAND

francs as the incapacity benefit, invalidity pension or survivors'
pension (in the case of occupational accidents) bears to the fraction
below that figure.
6.—Statistics.
Number of insured persons in 1933 :
Postal service
Telegraph and telephone service

...

Total

...

16,107
1,877
17,984

The figures for the year 1933, in so far as they refer to the staff of
the Postal, Telegraph and Telephone Service, are included in the
statistics for the general scheme on page 429 (Second Part, I. Workmen's Compensation).
The statistics given below refer solely to the application of the
provisions of the Order of the Federal Council dated 11 March 1918,
concerning the supplementary benefits granted by the Postal,
Telegraph and Telephone Service to its staff in the event of accident.
SUPPLEMENTARY B E N E F I T S P A I D I N EESPECT OF ACCIDENTS
DUHING 1933

For temporary incapacity
For permanent incapacity
For funeral expenses ...

...
...
...

Total

Francs
... 107,976
... 22,829
...
180
130,985

(6) S I C K N E S S I N S U B A N C K

1.—Legal Basis.
According to section 48 of the Staff Regulations for the Administrative Services of the Confederation of 30 June 1927 and section 60
of the Staff Regulations I of 24 October 1930, the Federal Council is
responsible for issuing regulations concerning the benefits to be paid
by the Confederation to the staff of the Federal services in the case of
sickness.
At present the sickness risk of the postal, telegraph and telephone
staff is not covered by an insurance scheme. The Service is responsible
for the payment of wages during the period of sickness. With regard
to medical attendance, drugs and surgical requirements, the persons
employed in the Service are free to join a sickness fund or not as they
like.
2.—Scope.
The payment of wages during sickness is guaranteed to all persons
engaged by the Postal, Telegraph and Telephone Service for personal
services only and working normal hours.
3.—Administration.
The Postal, Telegraph and Telephone Service pays direct to those
who are sick the cash benefits to which they are entitled.
For benefits in kind, the staff may freely join a recognised (Act of
13 June 1911) or non-recognised sickness fund.

456

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933

4.—Financial Resources.
The cost of the payment of wages during sickness is borne entirety
by the Service.
5.—Benefits.
The risk covered is that of sickness in general.
The obligations of the Service towards those persons employed by
it who fall ill are limited to cash benefits, as follows :
100 per cent, of wages during the first six months of sickness;
75 per cent, of wages from t h e seventh month onwards ;
50 per cent, of wages from the tenth month onwards.

The wages during periods of sickness may in no case be lower than
the amount of the invalidity pension. Residence allowances and
children's allowances continue to be paid. In special cases the Service
may decide not to reduce wages.
6.—Statistics.
Number of days sickness for the staff of the Postal,
Telegraph and Telephone Service in 1933
...
Cost of sickness benefits for the Postal, Telegraph
and Telephone Service in 1933
(o)

164,036
1,640,36o1 francs

I N V A L I D I T Y , O L D - A G E AND W I D O W S ' AND O E P H A N S '

INSTXRANCE

1.—Legal Basis.
Compulsory insurance for the officials of the Federal Postal,
Telegraph and Telephone Service is based on the Federal Act of
30 September 1919 providing for the creation by the Confederation of
an insurance fund for Federal officials, salaried employees and workers.
2.—Scope.
Insurance is compulsory for all permanent officials and employees
of the Postal, Telegraph and Telephone Service as well as for workers
engaged by the Service for a period which is presumed to be longer
than one year.
Membership of the Fund may also be made compulsory for the
auxiliary or temporary staff engaged as such but likely to be appointed
permanently later. Persons who have their work carried out by others
or who, by the terms of their contract, are excluded from insurance as
an exceptional measure by the authority which appoints them, and
persons who, for special reasons, voluntarily decline to be insured, are
excluded.
3.—Administration.
The insurance is administered by the Insurance Fund for Federal
Officials, Employees and Workers, which is managed by the Confederation but keeps separate accounts. The ultimate authority is
the Federal Council.
4.—Financial Resources.
The resources of the Fund are provided jointly and as required by
the Confederation and the insured persons. The Confederation pays
ordinary annual contributions equal to 7 per cent, of the annual
1

Estimate.

457

SWITZERLAND

earnings (as assessed for pension purposes) of the insured persons and
further payments equal to 5 monthly instalments of any increment
in annual earnings. It also pays to the Fund special subsidies for the
payment of interest and redemption charges in respect of the initial
deficit resulting from the fact that when the Fund was instituted the
whole staff was admitted to membership and from the loss involved
by the coming into force of the new legislation concerning salaries.
The insured persons pay an annual contribution of 5 per cent, of their
earnings as assessed for pension purposes and a supplementary contribution equal to 4 monthly instalments of any annual increment.
The other resources of the Fund comprise disciplinary fines inflicted on
the staff, income from the sale of lost property which is not reclaimed,
and any gifts or legacies. The obligations of the Fund are guaranteed
by the Confederation, which meets any deficit and also pays the
administrative expenses.
5.—Benefits.
The Fund insures officials, salaried employees and workers of the
Postal, Telegraph and Telephone Service against the economic
.consequences of invalidity, old age, death and the loss of employment.
The benefits may take the form of pensions, lump sums or relief.
Pensions are paid to insured persons who become permanently unable
to fulfil the duties of their position or of any similar position for which
they are qualified and to insured persons who, after not less than
15 years' service, are not re-appointed or are dismissed through no
fault of their own. Pensions are further paid to insured persons who
retire on account of age and to the widows and orphans of insured
persons and pensioners. Lump sums are paid in case of invalidity to
unmarried persons during their first five years of service or, in the
event of loss of employment, to insured persons who have more than
5 and less than 15 years' service. Relief is granted in special cases
of indigence or distress resulting from sickness or when the insured
person or invalidity pensioner dies without leaving a wife or husband
or children entitled to a pension but leaving, in necessitous circumstances, parents, grandparents, or orphan grandchildren, brothers or
sisters for whose maintenance he was mainly responsible. The
maximum limit of annual earnings taken into account for the purpose
of benefits is 15,000 francs. No benefits in kind are provided.
6.—Statistics.
Number of insured persons in 1933 :
Postal service
Telegraph and telephone service

...

Total

14,286
3,963
18,249

Number of pensioners in 1933 :
Postal service ...
Telegraph and telephone service
Total

...
...

2,803
792
3,595

458

INTERNATIONAL SURVEY OF SOCIAL SERVICES, 1933
INCOME AND E X P E N D I T U E E FOK

1933

(in francs)
INCOME

EXPENDITURE

Insured persons' contributions
5,500,264
Contributions of the Postal,
Telegraph and Telephone
Service
13,495,217
Total

Invalidity, old-age and survivors' pensions...
... 15,176,248

... 18,995,481

Total

BALANCE S H E E T AT 31 D E C E M B E B

15,176,248

1933

(in francs)
LIABILITIES

ASSETS

Overdraft
317,885,811
Advance from the State
Fund
178,487,448
Securities and loans
...
2,420,222
Total

Actuarial reserves
Savings Fund
Relief F u n d

... 498,793,481

THIRD

Total

490,594,126
5,779,133
2,420,222
498,793,481

PART

SOCIAL ASSISTANCE
I.—Non-Contributory Old-Age Pensions
Non-contributory old-age pension schemes exist in Switzerland in
one canton (Basle Town) and in a number of towns and communes.
CANTON OF BASLE

TOWN

1.—Legislation.
The Cantonal Act of 4 December 1930 for the granting of noncontributory old-age pensions and the Executive Order of 6 December
1932 provide that a monthly pension of 40 francs shall be granted to all
citizens of Basle who have reached the age of 65 and have lived
uninterruptedly in the canton for 5 years, as well as to Swiss citizens
who have been resident in the Canton of Basle Town uninterruptedly
for 20 years. Foreigners are treated in the same way as Swiss citizens
if their country of origin grants reciprocity of treatment. The old-age
pension is reduced or withheld when those who would otherwise be
entitled to it have a private income which, together with the pension,
exceeds 125 francs a month for unmarried persons and 225 francs for
married persons living together. The pension allowed to old persons
who are dealt with under the poor law of Basle Town and of other

SWITZEBLAND

459

cantons is deducted from the assistance given by the canton of Basle
Town.
2.—Statistics.
Expenditure in 1933 : 1,135,170 francs, of which 213,482 francs
were paid direct to the Assistance Service of Basle Town.
MUNICIPALITY or

BERNE

(Canton of Berne)

1.—Legislation.
Under the municipal Order of 20-21 December 1930 concerning
municipal assistance for aged persons' pensions, payable so long as the
beneficiaries are resident in the municipality, are granted to persons
who are over 65 years of age and have been domiciled in Berne for at
least 15 years since their forty-fifth year. Foreigners are not entitled
to such allowances unless they have resided in Berne for at least 20
years without interruption. The allowance is 480 francs for unmarried persons and 660 francs for married couples. The amount is
reduced when the income of the beneficiaries, together with the pension,
exceeds 1,500 francs for an unmarried person or 2,000 francs for a
married couple. Non-contributory pensions are granted only to unmarried persons whose capital does not exceed 15,000 francs or income,
1,500 francs, and married couples whose capital does not exceed 15,000
francs or income, 2,000 francs. Persons in receipt of poor relief and
persons maintained in homes, prisons or asylums may not claim
pensions under the scheme.
2.—Statistics.
Expenditure on non-contributory pensions in 1933 : 306,688 francs.
M U N I C I P A L I T Y OF B I E L

(Canton of Berne)

1.—Legislation.
The Regulations of 28 iíovember 1929 concerning non-contributory
old-age pensions provide that inhabitants of Biel who have passed the
age of 70 years shall be granted a monthly pension of 40 francs. The
same allowance is made to Swiss citizens after 15 years and to foreigners
after 20 years of uninterrupted domicile in the municipality. The
. pension is withheld or proportionately reduced if, together with any
other income, it exceeds 110 francs a month for single persons or 165
francs for a married couple. Benefits in cash or in kind to which the
pensioner has no legal claim, assistance given by relatives, and 10 per
cent, of any earnings are left out of account in reckoning private
income, provided that, in the aggregate, such amounts do not exceed
130 francs a month for a single person or 200 francs for a married
couple. Persons in receipt of poor relief and persons placed in workhouses, inebriates' homes, asylums and penitentiaries are not entitled
to a pension.
2.—Statistics.
Expenditure on non-contributory old-age pensions in 1933 :
132,100 francs.

460

INTERNATIONAL SURVEY OF SOCIAL SEKVICES, 1933
MUNICIPALITY OF L A

CHAUX-DE-FONDS

(Canton of Neuchâtel)

1.—Legislation.
The Order of 22 November 1930, concerning assistance for aged
persons, instituted a municipal service for such assistance. The
benefit may be paid in kind and amounts to 200 francs for a person of
Swiss origin and 100 francs for foreigners. I t is paid to persons who
have been domiciled in La Chaux-de-Fonds uninterruptedly for not
less than 10 years in the case of citizens of Neuchâtel, 20 years in that
of Swiss citizens from other cantons and 25 years in that of foreigners.
Non-contributory old-age pensions may not be claimed by the
following, among others : persons whose total annual income (earnings
from work, income from capital, assistance from public or private
sources, benefits in kind) exceeds 1,200 francs, persons whose taxable
capital exceeds 5,000 francs, persons maintained in homes, etc., and persons in receipt of regular assistance amounting to more than 200 francs
per year. The old-age pension may be claimed from the beginning
of the year in which the person concerned reaches the age of 66.
2.—Statistics.
Expenditure on non-contributory
95,495 francs.
M U N I C I P A L I T Y OF

old-age pensions in 1933 :

INTERLAKEN

(Canton of Berne)

1.—Legislation.
Under the Municipal Order of 25 November 1931, concerning
assistance for aged persons in the municipality of Interlaken, the same
benefits are granted, and on practically the same conditions, as in
the municipality of Berne.
2.—Statistics.
Expenditure on non-contributory old-age pensions in 1933 :
5,480 francs.
MUNICIPALITY OF

LIESTAL

(Canton of Basle, Rural)

The municipality provides 1,200 francs a year for distribution to
indigent old persons of both sexes. The Committee of the Home for
the Aged is responsible for distributing this amount.
MUNICIPALITY OF L E

LOCLE

(Canton of Neuchâtel)

1.—Legislation.
By virtue of the municipal Order of 12 December 1930, concerning
assistance for aged persons, the same pensions are paid, and on the
same conditions, as in the municipality of La Chaux-de-Fonds.
2.—Statistics.
Expenditure on non-contributory old-age pensions in 1933 :
16,057 francs.

461

SWITZERLAND
MUNICIPALITY OF L U C E B N E

(Canton of Lucerne)

1.—Legislation.
Under the Order of 10 April 1930 concerning assistance for aged
persons in the municipality of Lucerne, non-contributory pensions may
be claimed by persons over 65 years of age who have been domiciled in the
municipality for 5 years in the case of citizens of Lucerne, for not less
than 15 years in that of citizens of other communes in the canton or of
other cantons, and not less than 20 years in that of foreigners. Pensions
may not be claimed by unmarried persons whose total income exceeds
1,500 francs, or capital, 10,000 francs, or by married couples whose
income exceeds 2,000 francs or capital, 15,000 francs. Persons who
are regularly in receipt of assistance are likewise debarred from claiming
pension. The amount of the pension is fixed as follows :
Income group
(francs)

I . U p to 1,000
II. 1,000-1,500
I I I . 1,500-2,000

Unmarried
persons (francs)

Married
couples (francs)

450
300

600
450
300

If the total amount of private income and pension together exceeds
1,300 francs for single persons in the first group or 1,500 francs in the
second group, the amount of the pension is reduced by the surplus.
The same applies to married couples when the total amount of private
income and pension exceeds 1,450 francs in group I, 1,800 francs in
group II, and 2,000 francs in group III.
Pension may be claimed from the beginning of the quarter following the date at which the person concerned has qualified in respect to
age and residence.
2.—Statistics.
Expenditure on non-contributory old-age pensions in 1933 :
146,307 francs.
MUNICIPALITY OF N E U C H Â T E L

(Canton of Neuchâtel)

1.—Legislation.
Under the municipal Order of 30 March 1931 concerning assistance
to aged persons, non-contributory pensions may be granted to aged
persons in straitened circumstances who have been domiciled in the
municipality uninterruptedly for 10 years in the case of citizens of
Neuchâtel, 20 years in that of citizens of other Swiss cantons, and 25
years in that of foreigners. Pension does not become payable
until the beginning of the year in which the person concerned
reaches the age of 66. It may be paid in kind and amounts to 200
francs for a person of Swiss origin and 100 francs for a foreigner. The
pension may not be claimed by the following, among others : persons
maintained in homes, et