Venidora Oliveira – The Ministry of Social Solidarity proposed the law on social security contribution for the workers in Timor-Leste for their retirement or in case of injury.
President of Commission F (responsible for health, education, culture, veteran affairs and gender equality) MP Virgilio Hornai said that under the law all government institution, international organizations and private companies would have an obligation to reach an agreement with workers on a salary sacrifice of between 5 and 6% for the social security contribution.
He said it was the state's obligation to establish social security system in case accidents occurred to employees during working hours as there was no life insurance provided. He said all workers would benefit from the proposed law as the funds could be used after retirement and help guarantee their future.
The draft law is currently being considered by Commission F and had been discussed with members of the national defence force and police, as well as the Commission of Public Services, international organizations and the Secretariat of State for Vocational Training Policy and Employment (SEPFOPE).
Once the law has been approved by parliament, a separate institution would be created to control and manage the funds.
The Director of Human Rights Association (HAK), Manuel Monteiro, said the introduction of a social security contribution was important to help reduce workers' reliance on the state once they retire.
"This will guarantee our future, so we don't have to rely on the state anymore," he said. He also called on the government to create an effective management system to ensure funds were secure.
However, national MP Brigida Correia called for an increase to the minimum wage before implementing the law.