Its existence is based on the contributions made by taxpayers, on a compulsory basis, through their pay slips or through the legally required contributions for carrying out an activity.
What is Social Security?
Although we have already talked about what Social Security is from a practical point of view, in reality Social Security is a public insurer. That is, it covers risks and citizens pay an insurance premium for it.
For example, just as we pay for home insurance, to try to compensate for the risk of certain situations occurring, in the case of Social Security it is exactly the same.
For example, Social Security, as a general rule, covers contingencies such as the following:
Sick leave due to an accident at work.
History of Social Security
Although each country adopted Social Security on a specific date, in general terms the creation of Social Security corresponds to Otto von Bismarck. Otto von Bismarck was the chancellor who at the end of the 19th century, specifically in 1889, put the Social Security system into operation.
In spite of the above, and in honor of the truth, it is fair and necessary to mention the role played by Wilhelm I of Germany. Who in 1881 proposed such a measure to the German parliament stating the following:
“Those who are disabled from work by age and invalidity have a well-founded right to receive care from the state.”
After the First World War, the development of this type of social security system grew and many countries gradually developed and created it. In 1900, only 17 countries had Social Security, but by 1946 there were 104.
In this line, it would be after the Second World War, when the United Nations Organization (UNO) included in the Universal Declaration of Human Rights the article 22 that states the following:
“Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international cooperation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.”
According to the ILO in 2015 there were already almost 200 countries that had their own Social Security system in place.
Objectives of Social Security
The main objective of this system is to provide protection to citizens. To this end, it carries out a set of activities financed by the State budgets and which have social and redistributive objectives, protecting people so that social imbalances do not occur. These social activities are carried out in four areas:
Cash transfers, such as unemployment benefits, retirement or disability pensions.
Health insurance, which should be universal and free.
Free and universal education services.
Supervision of housing, food and other basic needs.
Social Security is financed mainly by contributions from the country’s workers. In Spain, for example, it is organized by the Contribution Account Code. This is an eleven-digit number that is assigned to individuals at the beginning of their working life and will serve to identify them.
In addition, it should be clarified that medical care is not covered by the Social Security accounts.