Unfunded employee social benefits (D.623)

They are (in cash or in kind), payable to their employees, their dependants or survivors by employers administering unfunded social insurance schemes. They typically include:

  1. the continued payment of normal, or reduced, wages during periods of absence from work as a result of ill health, accident, maternity, etc.;
  2. the payment of family, education or other allowances in respect of dependants;
  3. the payment of retirement or survivors' pensions to ex-employees or their survivors, and the payment of severance allowances to workers or their survivors in the event of redundancy, incapacity, accidental death, etc. (if linked to collective agreements);
  4. general medical services not related to the employee's work;
  5. convalescent and retirement homes.
Unfunded employee social benefits payable by employers to their former employees or other eligible persons should be recorded including employers' actual social contributions, i.e. payments made by the employers for the benefit of the persons concerned to insurers.