Social security

The countries of Central and Eastern Europe face major challenges in achieving effective coverage of social protection for all. These challenges include the need to restructure benefits and schemes to reflect the transformation of economic and political systems; the need to adapt to fiscal constraints set by governments and international financial institutions; rapid growth of informal employment; and the ageing of national populations, a phenomenon on the horizon in nearly every country.

Central and Eastern European governments have responded to these challenges by adopting a wide range of reforms. The restructuring of pension schemes is a major issue across the region, with most countries seeking to reduce costs and make benefits more individualized and earnings related, through markedly different approaches. Countries have also established social insurance schemes to finance health care, expanded social assistance to address rising rates of poverty, and established unemployment insurance.

There have also been systematic changes in scheme administration. Centralized systems have been replaced by regional or local arrangements; tripartite governing boards have been established to guide and oversee administration; private actors are being relied on in some cases to deliver benefits (i.e. pensions and health care); and several countries are unifying the collection of contributions for different benefits (i.e. sickness, maternity, and old age) in an effort to improve enforcement and compliance. 

In the context of recovery from the global economic crisis and in the long-term trend of ageing population, countries in Central and Eastern Europe are facing a challenge of sustaining the pension system while ensuring adequate benefits to protect workers and their families.

ILO DWT/CO-Budapest is assisting in these efforts by providing policy analysis and advice, technical cooperation and training, as well as by facilitating exchanges of information and experience among Central and Eastern European countries.