Non-contributory or welfare level
The main purpose of protection through non-contributory benefits is to ensure the universal right to social security, meaning that people who have never contributed, or at least not enough to qualify for contributory benefits, are protected in certain situations.
The funding comes from the general State budget and the amounts provided for this purpose are managed by specialized administrative entities.
The benefits that governments usually guarantee in their non-contributory form differ depending on the country to which we are referring, since they are subject to specific regulations. However, in general terms, there are four basic types:
- Pensions: these are economic benefits provided on a periodic basis, for example monthly, and whose duration is for life or until a certain age is reached. These include retirement and disability pensions.
- Subsidies (financial aid): these consist of periodic and temporary benefits for the duration of the situation that generates them, such as, for example, an illness.
- Indemnities: financial benefits paid only once.
Other non-financial benefits, such as those for family protection and social services.