Beveridge and Bismarck models of social protection

  Social Security Model ( Bismarck Type) Social Security Model ( Beveridge Type)
Insured persons Able-bodied workers All population
Financing Social contributions (workers and employers) State budget (from taxes)
Cash compensation Depending on the “missing” salaries (income replacement principle) Uniform indiscriminate payments
Subject services Insurance services or cost recovery Free services in the public health system
Control Public , on a parity basis between workers and employers Public
Intensity of transfers Low High


Remember: The process of learning a person lasts a lifetime. The value of the same knowledge for different people may be different, it is determined by their individual characteristics and needs. Therefore, knowledge is always needed at any age and position.