Definition
Social protection systems provide support to people who cannot earn their income or face additional needs, for instance, because of unemployment, parental responsibilities, sickness, disability or old age.
This support can take the form of cash benefits, such as pensions or unemployment benefits, or benefits in kind, such as care services. In the EU, most social protection benefits are provided by public authorities.
In some cases, employers or social partners jointly also provide benefits, such as occupational pensions.
The set-up and financing of social protection systems is primarily a competence of Member States, while the EU supports national actions to ensure social protection and upward social convergence.
The EU ensures the protection of rights of people who move between Member States through the social security coordination.
Policy Framework
European Pillar of Social Rights
Chapter III of the European Pillar of Social Rights is dedicated to social protection and inclusion.
Several Pillar principles set our rights that aim to improve the functioning of social protection systems. This includes the access to social protection, long-term care, minimum income, and old age income and pensions.
European Pillar of Social Rights - Action Plan
The European Pillar of Social Rights Action Plan announced a number of initiatives to promote the implementation of the different Pillar principles. Relevant initiatives in the area of social protection include an initiative on long-term care and a High Level Expert Group to study the future of the welfare state.
Policy Monitoring and Coordination
Social Scoreboard
To monitor the implementation of the Pillar, an updated Social scoreboard was put forward by the European Commission in the beginning of 2021 and endorsed by the Ministers of Employment and Social Affairs of the European Union in June 2021.
The Social scoreboard contains a dedicated set of indicators in the area of social inclusion and protection. In the area of social protection, relevant indicators include impact of social transfers (excluding pensions) on poverty reduction (headline indicator), general government expenditure by function, and aggregate replacement ratio for pensions.
Social protection Committee
Through the open method of coordination for social protection and social inclusion (Social OMC) – and in collaboration with the Social Protection Committee – the EU provides a framework for mutual learning, exchange of best practices and social protection analysis, in particular on issues relating to:
European Semester and funding
Social protection policies are also covered by the European Semester. Support to national reform measures in the area of social protection are available from the European Social Fund+ and the Technical Support Instrument.
Future of social protection
Social protection systems, including temporary measures, played an important role in mitigating the social impact of the Covid pandemic.
However, social protection systems are facing fundamental challenges linked to changes in the demographic situation, labour market, technology and environment. To remain adequate and sustainable in the 21st century, they need to adapt to these changes.
As announced in the European Pillar of Social Rights Action Plan, the European Commission has set up a High-level group of experts that prepared a report proposing a vision on how to reinforce European social protection systems in light of ongoing and upcoming challenges.