Social Development and Improvements in Social Equity 85
VII. PROVIDING THE FOUNDATION FOR SOCIAL SECURITY
With improvements in the standard of living and a longer average life expectancy, the number of aged persons has increased both in absolute and relative terms. At the same time, the increasing complexity of the social structure has helped to produce a large number of uncared-for juveniles and women. Rapid industrialization and urbanization have created greater accident and sickness hazards in the nation. These factors make the development of an integrated social security and welfare system important. During this Plan period priority will be given to development of such a system.
1. Basic Policy Directions
During the Plan period, a firm foundation will be laid for a com- prehensive social security program. In order to achieve this objective, new laws will be enacted and existing social security legislation will be revised.
2. Programs and Policy Instruments
2.1 Gradual Expansion of Social Insurance Programs
2.1.1 Formulation and implementation of medical insurance program
A new medical insurance program will be introduced in 1977 to provide medical benefits to employed workers and self-employed persons. Those covered by the program can be divided into two categories. The first category includes employed workers and dependents of firms employing 500 or more workers; the second category includes the remaining population. Health insurance for the first group will be compulsory with premium costs jointly shared by employers and employees while the government will cover administrative costs. The number of participants in the health insurance program will increase gradually over the next several years. By 1981, the persons joining the program are expected to reach 2.5 million.
2.1.2 Implementation of a national welfare pension program
Under the National Welfare Pension Program, all residents between the ages of 18 and 60 will be protected against the long-term risks associated with old age, disability, and death. Premium costs will be shared jointly by employers and employees at the level of 3 to 7 percent of the employee's monthly earnings.
2.1.3 Extension of industrial accident insurance
Participation in the Industrial Accident Insurance Program will be
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