Contribution collection and compliance systems comprise different activities. Some concern matters of institutional organization, policy and strategy, while others focus on contribution collection operations and compliance enforcement. In turn, the involved actors consist mainly of the institutions responsible for collecting social security contributions and of different categories of contributors. In some cases, other actors may be involved, notably financial services entities participating in contribution payment processes and public entities responsible for compliance enforcement.

There is great variation in contribution collection and compliance systems. The specific configurations of their areas of activity and the nature of the actors involved differ across schemes and according to organizational approaches.

Areas of activity

Contribution collection and compliance systems undertake the following roles: governance of the system, strategic planning, contribution collection operations, compliance enforcement, systematic inter-institutional coordination, and the management and promotion of the maturity of the contribution collection and compliance system.

The ISSA Guidelines on Contribution Collection and Compliance address all of these.

Actors

Institutions responsible for social security contribution collection include those administering social security schemes as well as institutions specialized in social security contribution collection and national tax agencies.

Contributors consist of different groups, including employers, employees and self-employed workers. To an important degree, the effectiveness and efficiency of the contribution collection system relies on the mechanisms used to incorporate these different groups. The development of partnerships with employers may improve the collection of employees’ contributions. The collection of the contributions of self-employed workers may require an alternative approach.

Other actors with a role in the contribution collection and compliance system consist of financial services institutions (e.g. banks and payment collection services), which may facilitate and enhance the effectiveness of payment processes. Compliance enforcement may be undertaken by specialized public institutions.