Welfare State Classification: The Development of Central Eastern European Welfare
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| 6.3 Family benefits In line with most aspects of the Slovakian welfare state, family benefits have been reformed most radically in the period between 2003 and 2004. Cerami (2005) states that before the reforms family policies included a strong means-tested component and that the amount of benefits was based on a guaranteed minimum income, which was established as a poverty threshold (Cerami 2005: 139). 36 Thus, family benefits were universal and have a Beveridgean character. As described in chapter 2, the main function of Beveridgean welfare systems is poverty reduction. At the same time the fact that also the benefits are means-tested leads to the conclusion that elements are combined. Mostly, in universal welfare states benefits are not means-tested, but flat-rate based. INEKO (2004) states that child allowance has been reformed; the new system includes a flat child allowance of Sk 500 per month, regardless of a child’s age and family income (INEKO 2004: 73). The flat-rate of child allowances has been risen by Sk 230. The new Act on Child Care has abolished the means-tested component of the system, in other words, the amount people receive no longer depends on family income and the age of children. The means-tested component was mainly cancelled due to its complexity and administrative burden (Golias and Kicina 2007:15). The new child benefit can be split in two parts: (1) the already mentioned flat benefit, which is the universal payment regardless of income and child’s age and (2) a tax bonus. The latter is a bonus deductible from income tax. An important condition is that at least one parent is employed. This condition was introduced as an incentive to work (Golias and Kicina 2007). Hence, one can conclude that child allowances combines elements of both Beveridgean and Bismarckian welfare systems; the flat-rate universal benefits are Beveridgean while the tax deductible bonus can be considered to be work- related and thus Bismarckian. Family benefits in Slovakia can be considered to be quite extensive and consist of among others 1) birth grant; (2) maternity leave, which is paid up to 196 days and equal to 90 percent of the net daily income; (3) parental allowance, which is income-tested and meant for parents who are taking care of a child under 3 years of age; (4) child allowances, which has been discussed in the preceding part and is payable until 15 years of age; and (5) allowances for families of persons on military services (Cerami 2005: 139). As said, the family benefits are extensive and mostly means and income-tested. Exceptions are child allowances which nowadays consist of both a flat rate and a tax deductible bonus. All in all, when looking at family benefits and policy one can conclude that not much has changed in the period between the fall of the Berlin Wall and 2005. One can see a clear trend to means-tested benefits, with the exception of child allowances. Thus, the only major reform which have taken place concerning family benefits in the last decade is the change from means-tested child allowances to universal child allowances. Concerning the other elements of family benefits one can conclude that, again, most elements are means-tested and thus fit into the conservative welfare type. Of course, the above shows that, again, elements are combined. Simply put, when looking at family benefits one can conclude that Slovakia does not fit into a welfare classification nor in a welfare system. Download 374.54 Kb. Share with your friends:
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