Financing occupational safety and health prevention: A comparative analysis of six case studies

At its 349th Session, the ILO Governing Body endorsed the Global Strategy on Occupational Safety and Health (OSH), recognizing sustainable financing as a key condition for the development of effective, resilient and sustainable national OSH systems. This working paper examines and compares six approaches to financing OSH prevention in Germany, Japan, Quebec (Canada), Peru, the Philippines and Tunisia. Drawing on these case studies, it analyses the institutional arrangements, financing modalities and incentive structures supporting prevention activities. The analysis indicates that institutionally mature systems rely predominantly on employer-financed models, combining enterprise-level investment with contributory social insurance mechanisms that integrate prevention and compensation functions. By contrast, systems undergoing institutional development tend to depend more heavily on public financing and complementary external support, often within fragmented governance frameworks.

Across the case studies, the paper identifies a number of common challenges, including limited earmarking of resources for prevention, constraints linked to labour informality, and weak monitoring and tracking of OSH-related expenditure. It also highlights policy options to strengthen the sustainability and effectiveness of prevention financing, including dedicated financing arrangements, incentive-based contribution systems and improved mechanisms for monitoring prevention investments.