Employment, Social Affairs & Inclusion

News 31/01/2023

Report on the implementation of the recommendation on access to social protection

The report adopted today by the Commission shows a mixed picture in the implementation efforts of the recommendation on access to social protection for workers and the self-employed, three years after its adoption by the Council.

Workers on the packaging line for Belgian endives

The report follows the 2019 Council Recommendation on access to social protection for workers and the self-employed. Member States were recommended to implement the Recommendation and to submit a national plan.

The report shows that there is considerable variation in the level of ambition of Member States in the implementation of the Recommendation.

On one hand, a number of Member States have undertaken or planned reforms to improve the situation. On the other hand, most Member states are not aiming at closing all existing gaps in access to social protection.

Formal coverage

Since 2019, 15 Member States have undertaken or planned important reforms to improve participation to social protection schemes for specific categories such as self-employed people or those in non-standard forms of contracts. However, a large number of people are likely to continue lacking formal access.

In the dozen Member States that reported data, it is estimated that at least 5.6 million non-standard workers and 15.3 million self-employed people do not have access to unemployment benefits. 

Better monitoring, reducing social and fiscal incentives for solo self-employment and short-term contracts, regulating platform work can help to improve access to social protection.

Effective coverage

Existing rules governing contributions and entitlements may effectively prevent people who participate in social protection schemes from receiving any benefits. 

Since 2019, relatively few implementation measures have addressed the issue of effective access while in many Member States, the gaps in income support between people who were previously in 'standard' employment and others remain significant.

Adequacy

'Adequate' social protection schemes provide individuals facing income loss with a sufficient and timely income replacement, maintaining their standard of living and protecting them from poverty. 

Some Member States have implemented measures in this area, for instance to improve the adequacy of unemployment benefits

However, temporary-contract employees and part-time workers still face greater deprivation than permanent-contract employees and full-time workers – while self-employed face higher poverty rates than employees.

Transparency

Transparency is crucial to improving access to social protection.

However, social protection rules are sometimes too complex or unclear, so people may not be properly aware of their rights and obligations, or of how to exercise those rights and comply with their obligations. 

Many countries have started to digitalise the management and delivery of social protection through simplified one-stop portals, automated access to some benefits, pension simulators or pre-filled application forms.

A recent report by the network of independent expert on social protection provides additional information about the state of play of transparency of social protection systems across EU Member States.

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