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Basic economic information on Slovakia

Ministry of labour, social affairs and family in Bratislava Inter- sectoral Governance and Coordination of Social and Employment Policies in the Slovak Republic Belgrade , 24.02.2016. Content. Basic economic information on Slovakia

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Basic economic information on Slovakia

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  1. Ministryof labour, socialaffairs and family in BratislavaInter-sectoral Governance and Coordination of Social and Employment Policies in the Slovak RepublicBelgrade, 24.02.2016

  2. Content • Basic economic information on Slovakia • Ministry and Central office of Labour, Social Affairs and Family • Part I: Institutional, Administrative and Legal Challenges • Part II: Financial Aspects • Part III: Data Management

  3. Slovak Republic • 5 421 349 inhabitants/ 2 697 064 economically active • 3,7% GDP growth (2. Q 2015) • 861 EUR average • wage (2. Q 2015) • 330 783 unemployed • job applicants • 10,3% unemployment • rate

  4. MOLSAF/COLSAF Ministry of Labour, Social Affairs and Family (legislation, strategy) (execution, implementaton) Central Office of Labour Social Insurance National Social Affairs and Family Agency Labour Inspectorate Employment services State socialbenefits Compensations to disabled Orphanages SocialInsurancesystem Pensionsystem Unemploymentbenefts Illegalwork Labour inspection

  5. Central Office of Labour, Social Affairs and Family • Budget 1 495 mil. EUR • 1. Socialinclusion 1 366 mil. EUR • 1.1 MaterialNeedAssistance 300 mil. EUR • 2. ALMP measures – spent: 129 mil. EUR • Humanresources 12 352 employees • Centrallevel 622 employees • Employment services 2 626 employees • Social and FamilyAffairs 5 546 employees • Orphanages 3 558 employees • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • 46 localofficesof labour, socialaffairs and family • 65 state orphanages

  6. Part I - Institutional, Administrative and legal challenges

  7. Coordination of social and employment policy Institutional, Administrative and legal challenges L E G I S L A T I V E Institutionalreforms Measures and services Supportsystems: ICT and DATA Management

  8. Institutional, Administrative and legal challenges • Legal base for coordination of social and employment policies • Act on State Administration in Social Affairs, Family and Employment Services • Act on Employment Services • Act on Assistance in Material Need • Act on Social Insurance • National Employment Strategy • (cross-sectoral strategy document aiming at 72% employment by 2020)

  9. Coordination of social and employment policy 2004 Act on State Administration in Social Affairs, Family and Employment Services (No. 453/2003) creation of Central Office of Labour, Social Affairs and Family National Labour Office (public institution) and 79 local Social Affairs departments (state administration) COLSAF: organization of Ministry of Labour, Social Affairs and Family Provision of 2 pillar services Employment services State social services Two non-connected pillars, organization of more than 12 000 employees Institutional, Administrative and legal challenges “Cradle to grave services“

  10. Main challenges and problems of merger of 2004 Different work cultures in both organizations (dynamic modern vs. ossified organization) Non – compatible ICT, and different level of equipment (relatively modern vs. obsolete) Different legal status of employees, different renumeration (public employees vs. civil servants) Different financing (separate fund vs. state budget) Institutional, Administrative and legal challenges

  11. Coordination of social and employment policy 2004 Activation allowance introduction Basic allowance linking social and employment policy Non obligatory financial benefit to Material Need Assistance recipients who decided to those, who activated themselves by further studying, retraining or conducting small municipality works 2013 Establishment of Activation centers within local offices of LSAF +840 coordinators with access to Material Need Assistance database Preparation for new legislative requirement starting on 1 January 2014 Institutional, Administrative and legal challenges

  12. Coordination of social and employment policy 2013 Covering contributions for low-paid job taken up by LTU jobseekers Act on social insurance; No. 461/2003 Aim: Stimulate unemployed jobseekers in social net to pick up low-paid jobs (max. 67% of national average wage) Duration od deduction: 12 months Deduction of contributions from 35% to 1% 2014 Linking activation requirement with material need allowance entitlement At least 32 hours a month to be entitled to material need benefit At least 64 hours a month to be entitled to activation allowance Institutional, Administrative and legal challenges

  13. Coordination of social and employment policy 2015 Concurrence of specific allowance and wage Claimant: LTU material need benefit recipient Duration: 12 months (126,14 in 1-6M and 63,07 in 7-12M) Condition: wage must be at max. twice the minimum wage in SK Biggest institutional reform of COLSAF since creation in 2004 part of whole State administration reform (ESO) Real merger of social and employment services New type of core employee introduced – PERSONAL AGENT Reallocation of 750 employees from back to front office Retraining of more than 2000 employees Institutional, Administrative and legal challenges

  14. Main challenges and problems of 2015 reform Win the hearts of management and staff for a change Reallocate and retrain more than 2000 employees for a new concept of service provision Transition to use new ICT systems and absorb complexity of agenda Institutional, Administrative and legal challenges

  15. Coordination of social and employment policy 2016 Broadening of contributions relief for low-paid job taken up by jobseekers from regions most seriously affected by high unemployment Region has to have unemployment at least 1,6x higher than Slovak average Jobseeker at least 6 months in register Social Economy development New definition od social enterprises In Amended Act on Employment Services Three pillar SE development Institute of Social Economy (1HQ +7 regional centers); 3/2016 – 12/2020 Loans system for subjects of social economy (6/2016) Demand driven call for subjects of social economy (6/2016) Institutional, Administrative and legal challenges

  16. Part II – Financial Aspects

  17. Financial Aspects of social and employment policy coordination • In general, impossible to exactly financially calculate. • No ax ante analysis was conducted in advance. Real outcomes will be shown only after finalization and implementation of all reform processes. • Completely missing information from 2004 reform. • It is also not possible to exactly calculate financial savings in the system as these will be composed of centralized processes, such as centralized public procurement which is not possible to precisely calculate.

  18. Financial Aspects – costs for Institutional Reform • Costs for Institutional Reform of 2015 • Legal pre-requisite for reform to be budgetery neutral • Total costs for reform had to be therefore saved within budget of Ministry of Labour, Social Affairs and Family. Costs: • Creation of new organizational structure: 1 032 000 Eur • Centralization of economic and HR units: 1 007 000 Eur • Creation of unified e – attendance system: 2 478 000 Eur • In total: 4 517 000 Eur • MoLSAF did not get additional finances from Ministry of Finance for institutional reform

  19. Financial Aspects – staff costs • Staff costs related to institutional reform of 2015 • Professional training was conducted internally – unit costs 2,87 eur/person (total number of lectured hour in 2015 = 2930); total number of participants: 13 700; flat fee for internal trainers 700 eur; total costs: 38 000 Eur • Soft skills training conducted externally; 2000 participants; costs were in total: 525 600 Eur • Payments of severance package for 257 employees who left were in total: 1 108 000 Eur • IN TOTAL, staffcost related to reform of 2015 for merging social and employment experts for creation ofPERSONAL AGENTS were: • 1 670 500 EUR

  20. Financial Aspects - ICT costs • ICT costs for merging social and employment services and ensuring online connectionwith other institutions • IS of Employment services: 10mil. EUR • IS of Social benefits management: 12mil. EUR • Operating costs for both systems: 600 000 EUR/year • (includes also costs for cross-connection with other institutions) • ICT costs for centralization and cross-sectoral • cooperation: 1.5mil. EUR • IN TOTAL: ICT cost of merger and cross connection: 1.5 mil EUR

  21. Financial Aspects Costs of Measures • Concurrence of specificallowance and wage • No. of supported LTU on Material need Assistance who took up low-paid jobs: 16 920 • Amount paid to them as contribution to wage: 9 335 500 Eur in 2015 • Linkingactivationobligationwithmaterialneedbenefitassistance • Using activation centers for this service (840 coordinators) • Wages:8 064 000 Eur/year • In 2015 we cooperated with 3995 subjects (municipalities, etc...) • Costs of protective equipment in 2015: 745 000 Eur in 2015 • Activation allowance • For those who agreed to work at least 64 hours in month • In 2015, 37 058 jobseekers participated • Amount paid in 2015: 15 627 000 Eur in 2015

  22. Financial Aspects - savings • Savings related to 2015 reform linked to human resources optimization and creation of personal agents dealing with both (social and employment issues): 513000 Eur/year • cutting of HR in cross - cutting departments and relocating in favor of front line staff • cutting of management positions by 24% • Savings related to introduction of new ICT are indirect: • Savings in staff, Saving in red tape/bureaucracy • Savings resulting from lower error rate • Savings related to introduction of e-services • Savings resulting from introduction of work requirement for material need assistance: 4.5mil. Eur (since 7/2014 to 12/2015)

  23. Financial Aspects of social and employment policy coordination Aggregation Costs of institutional reform 2015 4 517 000 Eur Costs for staff (reform + activationcenters)9 681500 Eur ICT costs 1 500 000 Eur In TOTAL 15 698500 Eur Costs for measures (in 2015) 25 707 500 Eur (bridging social and employment policies) Costs for development of social economy 9 000 000 Eur (only development of Institute of SE in 2016) Savings of coordination of social and employment policies Staff savings 513 000 Eur/year MN benefits saving 4 500 000 Eur(7/14-12/15)

  24. Part III – Data Management

  25. Data Management at CoLSAF • Since 2012 COLSAF implemented ICT reform • More than 960 local databases were merged including historical data into one central DATA WAREHOUSE • Since 2014 COLSAF exchanges in real time data with Social Insurance Agency through webservices • Since 2015 launch of SOCIAL CALCULATOR • single access point for employees to see complex data on client and his/her family situation, • Important tool for PERSONAL AGENTS • Calculates complex benefits entitlements, evaluates eligibility to benefits, recalculates different scenarios according client situation • Enableselectronically submit applications to benefits

  26. Data Management at COLSAF • Since 2016 • COLSAF online connected through webservices to: Financial Directorate and Healthcare Insurance Companies • from 1 January 2016 duty of provision of all necessary documents from other institutions went to COLSAF (in electronic form) • (it is no longer a duty of claimant to gather all this information for labour office) • Next steps in 2016: connecting to Ministry of Education, Healthcare Surveillance Authority, Slovak Post, Slovak television, Alien and border Police, Ministry of Interior

  27. Data Management at CoLSAF • Ministry of Education webservices connection • Verification of school attendance for purposes of family benefits payments • (if absence of more than 15 hours – we stop payments of family benefits) • Information on highschool and university school graduates • (information for Ministryof Education for adjusting education system) • DATA sharing between institutions • Key is a UNIQUE IDENTIFIER of client for transfer of data between institutions • Unique digital exchange numberis created by matching of 5 key identifiers(first name/surname/personal ID/date of birth/ place of birth) • - Act on Personal Data Protection (122/2013)

  28. Data Management at CoLSAF • Main practical problems we dealt with • Introduction of IDENTITY MANAGEMENT (3 steps to approve identity) • Categorization of ACCESS RIGHTS (read/write/edit/hidden) • (exact access to exact information) • LOGGING of the system (system memory: who wrote/who edit) • Protection against ERASING (document can become invisible, but it is never deleted) • ADMIN rights to correct, hide from visibility or remove (based on the written request) • Main challenges in integration of databases • Unique Identification • Old fashioned ICT • Missing data/ bad data

  29. Data Management at governmental level • Project of e-Government • Aim of the project is effective connection of public administration institutions and its more effective communication with citizens and legal persons • Project is backed by: • Act on e-Government • Ministry of Finance as responsible body • Cornerstone of the project: Central Administration of Reference Data • Benefits of the project • Removing of red tape and bureaucracy • Principle ONCE is enough • Saving of costs/faster access to data/ • Higher satisfationof clients

  30. Data Management at governmental level CentralAdministrationofReferenceData IS CARD Social Insurance Ag. Financial Directorate Healthcare Insurance companies Heathcare Surveillance Authority Statistical Office Data Center of municipalities Government Office CoLSAF IS ES IS SB Social Insurance Agency Cars Registration Ministry of Education Mnistry of Justice Slovak television Data Center of Municipalities National Labour Inspectorate UDZS

  31. Thank you for your attention! boris.katuscak@upsvr.gov.sk

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