Social Solidarity
Social Solidarity is a comprehensive welfare program implemented by the federal government of Nouvelle Alexandrie. This program aims to ensure that all citizens and residents can meet their fundamental needs and enjoy a decent standard of living. The program was established by the Social Security Act of 1685 AN, as part of the New Prosperity Plan advocated by the then government of Alduria-Wechua (now Nouvelle Alexandrie) and is administered by the Federal Social Security Authority (FSSA).
Program Components
Social Solidarity consists of several key components designed to support the diverse needs of the population.
Old Age Support
A robust pension system ensures that senior citizens have a stable income after retirement. The amount of the pension is calculated based on the individual's earnings history, with the aim to replace a percentage of their pre-retirement income.
Child Maintenance Support
This component provides financial assistance to low-income families with children to help cover the costs of food, clothing, housing, and other necessities. The amount of assistance varies based on the family's income and the number of children.
Healthy Families Plan
Medical Treatment
The program includes comprehensive health insurance that covers a wide range of medical services, including preventative care, hospital stays, prescription medications, mental health services, and more.
Parental and Sick Leave
Workers are eligible for paid leave for the birth or adoption of a child or if they or a family member fall ill. This ensures that individuals do not have to choose between their health or their family and their job.
Unemployment and Disability Benefits
In case of job loss or inability to work due to disability, the program provides temporary financial assistance to help individuals stay afloat while they find a new job or adapt to their new circumstances.
Occupational Injury Support
Workers who suffer an injury on the job are eligible for compensation to cover their medical expenses and lost wages.
Funding
Social Solidarity is primarily funded through payroll taxes collected by the Federal Revenue Authority and placed in the national Social Solidarity trust fund. The trust fund purchases government securities, the interest income from which is used to fund the monthly allocations to qualifying citizens and residents. Almost all salaried income, with a few minor exceptions, is subject to the payroll tax.
In instances of unionized workers, an arrangement is established where some of the responsibility for welfare payments, especially unemployment benefits, falls on the trade/labor unions. Unemployment funds held by unions or labor federations are regulated and subsidized by the federal government. This unique model has stimulated the growth of union membership in the Federation, as unions often use dues to supplement the benefits of their members.
Impact
Since its inception, the Social Solidarity program has played a crucial role in reducing poverty and improving the quality of life for millions of citizens and residents. It has also contributed to greater economic stability by providing a safety net for individuals and families during times of economic downturn or personal hardship.
