Policy Brief

Facilitating transition between social assistance and social insurance in the Arab Region: Conceptual framework and review of global good practices

The Arab Region faces dual challenges: high labour informality (51%) and low social protection coverage (30–36%), exacerbating vulnerabilities. This study explores policy mechanisms to integrate social assistance and insurance systems, addressing disincentives that hinder transitions to formality. Aligned with ILO Recommendations 202 and 204, it emphasizes policy coherence to avoid abrupt welfare exits or prohibitive contribution thresholds. Global practices reveal pathways to harmonize benefit design, financing, and administration, enhancing system sustainability while incentivizing formal employment. Key insights stress balancing accessibility, affordability, and incentives to expand coverage and stabilize incomes.