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Social Security Services, costs and financing
The system of social security in Austria is a public welfare system including legal measures to ensure a basic standard of living and provide health services in the following cases:
• Illness
• Invalidity
• Maternity
• Unemployment
• Old age
• Death of a person obligated to pay financial support
Furthermore, the Austrian social security system provides support for the permanently handicapped and since 1993 it has paid money to people requiring permanent care and in need of help (nursing benefits - “Pflegegeld”). The amount of these payments depends on the degree of the handicap or the extent of the nursing needs.
The Austrian social insurance comprises the branches of health insurance, accident insurance and pension insurance. The implementation of social insurance is ensured by separate corporate bodies - the so-called social insurance institutions. Currently there are 17 health boards and seven insurance institutions, of which some cover two or all three fields of social insurance. The structure, both by region and by professional groups, has evolved historically. All insurance carriers are combined in the Main Association of Austrian Social Security Institutions, their umbrella organisation.
Social insurance is financed by the contributions of the insured people and in the case of employees, by their employers. The insured people’s income is used as a basis for the calculating the insurance contribution, which only applies up to an annually determined top threshold. It is currently (2005) at EUR 3,630 gross per month for employed workers and at EUR 4,235 for freelancers and farmers.
The individual parts of the social security system comprise:
Social insurance
This is a compulsory form of insurance based on the solidarity principle. It is linked in particular to gainful employment, but there are also regulations for old-age pensioners and unemployed people. Self-insurance for those who do not work is possible. An income-oriented contribution system enables benefits to be provided for people who are economically at a lower level. The insured people have a legal entitlement to social insurance benefits. They are financed predominantly by the income-dependent contributions. The individual social insurance providers administer themselves and are coordinated by a central institution, the Main Association of Austrian Social Security Institutions. The individual subgroups or providers are formed by the provinces, professional groups and individual enterprises. Supervision of health and accident insurance institutions is the responsibility of the Federal Ministry of Health, Family and Youth.
Unemployed insurance
This insurance is a compulsory form of insurance which provides money, support and advisory services in case of unemployment. Unemployed people are also insured in case of illness.
Social care
This is funded exclusively from tax funds and provides support for people who have suffered from damage by war, political persecution or as a victim of crime.
Social assistance
This forms the safety net of the welfare state and protects people who cannot be helped by other social security systems. It falls within the competence of provinces.
Health risks and their coverage by services of the social security system
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