Yemen

The social security in Yemen is regulated by a law of 1991, which provides for a social insurance system. The system is divided into two: public-sector system and private-sector system.

The system covers permanent employees of government agencies and all public-sector or quasi-public entities. There is a special system for military and police personnel. The private-sector system covers private-sector employees (nationals and foreigners), including Yemeni workers abroad. Casual workers, self-employed persons, agricultural workers, household workers, seamen, and fishermen are excluded from both systems.

In the case of the public-sector system, funds are contributed by both the insured person and the employer (the government) in the following proportions: (i) Insured person: 6% of earnings. The earnings used to calculate contributions include the basic salary plus all allowances paid to an employee, excluding bonuses and overtime wages; and (ii) Employer: 6% of payroll.

In the case of the private-sector system, funds are contributed by both the insured person and the employer in the following proportions: (i) Insured person: 6% of earnings. The earnings used to calculate contributions include the basic salary plus all allowances paid to an employee, excluding bonuses and overtime wages; and (ii) Employer: 9% of payroll.

In the case of the public-sector system, the old-age pension is available if: (i) men aged 60 with at least 15 years of contributions, (ii) women aged 55 with at least 10 years of contributions; (iii) men aged 50 to 59 with at least 26 years of contributions; (iv) women aged 46 to 54 with at least 20 years of contributions; (v) at any age with at least 30 years of contributions in case of men or 25 years of contributions in case of women. Early retirement is possible for both men and women regardless of age with at least 25 years of contributions if the insured becomes involuntarily unemployed.

In case of the private-sector system, the old-age pension is available at age 60 in case of men or age 55 in case of women, with at least 15 years of contributions. Early pension is available if: (i) men aged 50 to 59 with more than 25 years of contributions; (ii) women aged 46 to 54 with at least 20 years of contributions; (iii) at any age with at least 30 years of contributions in case of men or 25 years of contributions in case of women. A reduced pension is paid for retirement from normal employment from age 50 in case of men or age 45 in case of women with at least 20 years of contributions.

In case of persons covered by the public-sector system, the old-age pension consists of the person’s last gross monthly salary multiplied by the number of months of contributions, divided by 420. The minimum monthly pension is 20,000 rials (approximately USD 90). The maximum monthly pension is 100% of the person’s last gross monthly salary if he has at least 35 years of contributions or 43% if he has at least 15 years. In case of early pension, the benefit is calculated in the same way as the old-age pension. Benefits are adjusted by 50% of the value of any increase in the active civil servant salary.

In case of persons covered by the private-sector system, the old-age pension is the person’s last gross monthly salary multiplied by the number of months of contributions, divided by 420. The minimum pension is 50% of the person’s last gross monthly salary. In case of early pension, the benefit is calculated in the same way as the old-age pension. In case of reduced person, if the person retires from normal employment at age 45, the pension is reduced by 10%, and if he does so at age 50, by 5%. Benefits are adjusted by 50% of the value of any increase in the active civil servant salary.

The public-sector system is supervised by a board of directors, the General Authority for Social Security and Pensions administers the program; while the private-sector system is supervised by a tripartite board of directors, the General Corporation for Social Security administers the program.

 

Source:Social Security Programs Throughout the World: Asia and the Pacific, 2010, available at http://www.ssa.gov/policy/docs/progdesc/ssptw/2010-2011/asia/index.html

 
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