Social Solidarity

The Social Solidarity program is a government program designed to ensure that citizens and residents of Alduria-Wechua can meet basic human needs. The program includes support for those in old age, support for the maintenance of children, medical treatment, parental and sick leave, unemployment and disability benefits, and support for sufferers of occupational injury. Established by the Social Security Act in 1685 AN, it was part of the New Prosperity Plan put forward by the government of Alduria-Wechua. The program is administered by the Federal Social Security Authority.

Social Security is funded primarily through payroll taxes collected by the Federal Revenue Authority and placed in a national Social Solidarity trust fund. The trust fund purchases government securities, the interest income from which is used presently to fund the monthly allocations to qualifying citizens and residents. With a few minor exceptions, all salaried income is subject to the payroll tax. In the instances of labor or trade union members, the Federal Social Security Authority establishes an arrangement where some of the responsibility for welfare payments, especially unemployment benefits, is held partly by the trade/labor unions. In this circumstance, the government usually plays a significant role in distributing the benefits. Unemployment funds held by unions or labor federations are regulated and subsidized by the federal government. This has led to rapid growth in the rates of union membership in the Federation, as unions or labor federations often used dues to supplement the benefits of their members.