SICKNESS BENEFITS

Wanganui Chronicle, Volume 83, Issue 167, 18 July 1939, Page 8

SICKNESS BENEFITS

SOCIAL SECURITY ACT EXPLANATION BY MINISTER [ Per Press Association. J WELLINGTON, July 17. Explaining in detail to-day the working and extent of the sickness benefits under the Social Security Act. Hon. W. E. Parry, who has . temporary Ministerial control over the administration of the legislation, said that he regretted that some employing bodies had exhibited timidity as to the part they should play with, in particular, that section of the Act which provided sickness benefits. One or two other local bodies, he said, had decided to cease sick pay for their employees while on sick leave. I hat action’ seemed to be promoted by a desire to relieve themselves of any responsibilities in that direction and throw the whole onus of providing adequate sickness benefits on the social security fund without any consideration for the amount of benefits available from that source. The attitude adopted by the Opunake Electric-power Board, for instance, could hardly be considered in the best interests of its employees, as under ' the social security legislation sickness ■ benefits were payable at limited rates varying with the conjugal responsibilities of the incapacitated worker. "Under the Act," the Minister said, “sickness benefits rates vary from 20s per week for a single applicant, increased hv 15s a week for a dependent wife and 5s for each dependent child, so as not to exceed £4 in any one case. Apart from these sickness benefits the commission has fixed the scale of maximum allowable income (including benefit) that the applicants of the various conjugal classifications will be permitted to receive before the maximum rate of the benefit in each , case is reduced. "This scale is at a rate of 40s per week for a single person over 20 years and of £3 a week for a married man without dependent children, increased by 5s per week for each dependent child under 16 years of age. until it reaches £4 a week in respect of a married man with a wife and four dependent children. In view of the amount of other income applicants may have before the rate of the sickness benefit is reduced, it would be in the interests of employees generally, if employing authorities were encouraged to provide sick pay benefits at least up to the maximum rate of other income allowable. In addition, as the sickness benefit is not payable out of the social security fund for the first seven days of incapacity, except in special circumstances, employers could give a considerable measure of relief to their workers by granting a generous sick pay during this period. Waiting Period of Seven Days. Criticism had been levelled at the imposition of the waiting period of ' seven days after the receipt of the ! application at the Social Security ■ Office before the benefit was payable, I the Minister said. As a general rule i the qualifying period of seven days I commenced from lhe date of the ap- ! plication was received by the depart- : ment or the date of the medical examI .nation, which ever was later. Ap- ' plications, however, might be back--1 dated up to a period of seven days but ; not earlier than the day following the ; dav the applicant ceased employment, j or the day when the doctor examined! the api licant and certili )d him as in- : I capable of work, which xr was later, i However, in view of .ne fact that I because of ignorance of procedure, many people were delaying lodging their applications and consequently I i receiving less by way of ckness I benefits than they would otherwise be 1 entitled to, the commission had I authorised in the meantime, the backi dating of applications to the date of lhe medical examination or April 3, 1939. whichever was the later. Critic!,ni of Application Form. The Minister referred also to com- -. ! ments passed on the application form ' I itself from the point of view of lhe ; .detailed information required to be i furnished by the applicants, j -When it is realised, however," Mr. Parry said, •’that the sickness benefit i is payable to the applicant both in • respect of himself and his dependents, • certain questions must be asked so as I io determine the degree of assistance i the State would give in each case. | With the chairman of the Social Security Commission, Mr. J. H Boyes, ? I have examined closely this form, i and as a result of our conference, the ! application form has been redrafted : on a more simplified basis and. where ■ necessary, it is proposed in future to obtain additional information by peri sonal inquiry." . Non-payment ol benefits to appli- ! cants who applied for the sickness ! benefit while they weer in a public '.hospital, was touchea or. by the Minister. Prior to July, 1939, he said, I provided applicants could qualify, i sickness benefits had been paid to them while they were in public hospiI tals and dependents’ portions con- ; tinned in exactly the same manner. ' Since July, however, when the hospital benefits scheme came into operation. the dependents’ portion of the benefits were continued as long as the worker remained incapacitated and ; eligible for the benefits, but the apI plicant’s portion of the benefit was ■ only payable for a period of four i weeks while in a public hospital, j Before lhe expiry of the fourth week, • each case was reviewed and the ques- ; tion of whether the applicant's por- ! tion of the benefit would be continued - at full rates, at reduced rates or can- | celled, was determined in accordance I with the merits and circumstances of j each individual cfcst. action being en- ■ finely at the discretion of the commis- ! sion. j "The Government is desirous," Mr. i Parry added, "of fostering a continuI ance of sick pay schemes by employers at least on a basis so that em- ■ ployees may obtain the full benefits | provided under the Social Security i Act. Details of the scope of the leg- | islation I have given will help all parties to a better understanding of jthe operation of the sickness benefits provided and clear the way to their i smooth working.”