The creation of a social security system in Timor-Leste is a priority for IV Constitutional Government, and thus some guidelines for the creation of this future system have been approved in August this year, proposed by an inter-ministerial working group composed of technicians from the Ministry of Social Solidarity, the Ministry of Health, the Ministry of Finance, the Secretariat of State of Security and the Public Service Commission. The Working Group for the study and concept of the Social Security System had been created in February of this year and is analysing the various available models, taking into account the experience of the countries where these systems are already functioning, such as Portugal, Brazil and Australia.

Normally and in an ideal system, the budget for Social Security is maintained by the taxpayers, although there are cases where the State has to intervene, because the attribution of subsidies, pensions and other kind of State support is superior to the contribution made by the workers and by the companies. The objective is that everybody (employers, employees from the State, private sector and independent) pays a small sum throughout their active life, so that when they stop work, they can have an income (pension).

Despite the fact the Timorese workers haven’t yet started to contribut to Social Security, according to the Secretary of State Vítor da Costa , there are already candidates for the attribution of support: “there is a group of around 500 workers, military and police that are at th retirement age. Some are already 60 years old and some 70 years old. They need a pension”. Thus, and while a Social Security system is not yet defined and adopted, the Government will create a transitory regime for the payment of a pension for these State workers, which is also being studied by the Working Group.