Although OECD countries have advanced social protection systems, not everyone in need receives adequate support. For example, workers on “non-standard” contracts (including the self-employed or those on short-term contracts), young workers and others with unstable employment histories are often not entitled to unemployment benefits. As of 2021, only 23 of 36 OECD countries with available information reported providing some access to unemployment benefits for self-employed workers. But participation in contributory programmes is often voluntary, meaning many do not participate, and/or benefits are not as generous as for wage or salaried employees. 

Many countries are therefore exploring how to shore up access to social benefits for these workers, both to make labour markets more inclusive, and to level the playing field with regards to non-wage labour costs.

Statutory benefit rules help to illustrate how well social protection is reaching those in need, but they are not sufficient for assessing whether social benefits and services meet their objectives. Even when programmes are appropriately targeted and well-funded, high rates of non-take-up – i.e., the share of eligible beneficiaries who do not enroll in a programme – limit the effectiveness of these programmes. Information gaps and cumbersome application procedures can contribute to low take-up. Countries are increasingly investigating how they can harness new technologies and linked administrative data to make application procedures easier for claimants. Some are exploring how to automatically enroll eligible individuals.

Funding models for social protection differ significantly across countries. Workers in many OECD countries are entitled  to earnings-replacement benefits such as unemployment insurance, accident insurance, disability, and parental-leave benefits through financial contributions levied on employers and employees. Other programmes, such as means-tested benefits, are often funded through general government revenues. Healthcare and pensions, as well as long-term care support, may be contribution-based, privately or general-revenue funded, or a mix between the three. 

While there is no one-size-fits all approach, different funding bases have different effects on redistribution and risk-sharing. Ongoing megatrends  ----  including ageing and technological progress -- may both increase demands on social protection (e.g. greater spending on long-term care) as well as diminish its funding bases (e.g. if labour supply shrinks).