Law No. 12/2016 creating the Social Security Contribution Regime.

This Law, consisting of 72 articles divided into nine Chapters, creates the Social Security Contribution Regime. This Law creates, under the terms of the Constitution of the Democratic Republic of Timor-Leste and within the framework of the progressive organization of a social security system, the contributory social security system. The general regime will articulate, in the future, with complementary regimes, managed on a pay-as-you-go or capitalization basis, under the terms to be defined by the legislation that creates them. The general regime presupposes a contributory relationship, the benefits granted create subjective rights in the legal sphere of the beneficiaries and are proportional to the declared remuneration values. It is an immediate objective of the general regime to protect workers and their families in situations of loss of income from work that are identified in the Law. The general social security system is based on the fundamental principles of the primacy of political responsibility, equality, equity, protection of acquired rights and rights in formation, positive differentiation, self-financing, intergenerational cohesion, selective adjustment, information and legal guarantee.