It is a term that refers to the citizen’s wellbeing state. Also it is considered a public service with its own legal personality. A government program which creates a monetary fund designed to provide social and economic assistance.
According to the International Labor’s Organization, social security is defined as: “the protection that the society gives to its members, by certain public measures, against economic and social privatization which, if not, they would cause the disappearance or strong decrease in incomes caused by sickness, maternity, work-related accidents or occupational disease, unemployment, invalidity, old age, and death; and also the protection in medical assistance and help to families with children”. The social security funds receive money from:
- Incomes from companies and workers, by their (automatic) contributions.
- Management of the different Mutual Funds for accidents at work.
- Incomes from Public budgets.
- Equity and financial revenues from the entity itself As for the expenses it carries out, most of it corresponds to the expenses in social benefits, such as pensions or retirement funds.