Comparison of Social Insurance Systems in Several Asian Countries
The social insurance system is a form of social protection that aims to provide guarantees to the public against social risks, such as accidents, illness, job loss, retirement and death.
Social insurance systems vary from country to country, depending on level of development, history, culture, and government policies.
This article will compare the social insurance systems in several Asian countries, namely Indonesia, Singapore, Malaysia and Japan.
Indonesia has a social insurance system that consists of several programs, namely the National Health Insurance (JKN), Work Accident Insurance (JKK), Old Age Benefits (JHT), Pension Benefits (JP), and Death Benefits (JKM).
These programs are managed by the Social Security Administering Body (BPJS) for Health and BPJS for Employment.
The social insurance system in Indonesia is mandatory for all residents, both formal and informal workers, with contributions determined by the government.
Singapore has a social insurance system called the Central Provident Fund (CPF), which is a forced savings account for formal workers.
CPF is used to pay for health, housing, education, and retirement expenses. Formal workers must set aside a portion of their salary to the CPF, and employers must also make an equal contribution.
The social insurance system in Singapore is self-sustaining and market-based, with no government subsidies.
Malaysia has a social insurance system called the Employees Provident Fund (EPF), which is similar to the CPF in Singapore.
The EPF is also a forced savings account for formal workers, which is used to pay for health, housing, education, and pension costs.
Formal workers must set aside a portion of their salary to the EPF, and employers must also make an equal contribution.
Apart from EPF, Malaysia also has other social insurance programs, such as the Social Security Organization (SOCSO) for occupational accident and professional illness insurance, and the National Health Insurance Scheme (NHIS) for health insurance.
Japan has a social insurance system that consists of several programs, namely the National Health Insurance (NHI) for health insurance, Employees' Pension Insurance (EPI) for formal workers' pensions, National Pension (NP) for informal workers and citizens, Industrial Accident Compensation Insurance (IACI) for work accident and professional illness insurance, Employment Insurance (EI) for unemployment and job training insurance, and Long-term Care Insurance (LTCI) for elderly care insurance.
These programs are administered by both the central and local governments, with contributions shared between workers, employers and the government.
From the comparison above, it can be seen that social insurance systems in several Asian countries have similarities and differences in terms of coverage, sources of funds, management, and benefits.
The social insurance system is an indicator of a country's social welfare, so it needs to be developed according to the needs and capabilities of the community.
