High level of contributory solidarity from employed work
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Costa Rica – Best practice in adapting social insurance to independent workers
Although in the past some agreements with undetermined terms have been signed, a maximum one year term is currently negotiated. During this period, it is not permitted to change the established contributions, even
if the Board of Directors changes the contribution scales to be applied to the new affiliated organizations. For this reason, contributions are adjusted annually at the time the agreement is renegotiated.
The agreement may be terminated with a three month notice by any of the parties subscribing it within the one year duration term. The role of the CCSS Board of Directors in this procedure is to establish general
guidelines, to approve the increases in the contribution scales, and to settle force majeure disputes.
Source: Durán-Valverde, 2009.
An essential factor in the success of this model is the sense of ownership on the part of participant organizations, to the point that this collective insurance mechanism also
represents a tool for strengthening social cohesion and organizational and political capacity for farmers and other groups organized into cooperatives and associations. In addition, the
State participates through subsidizing the contributions paid by these groups.
7.2.5. Contribution portability with maintenance of rights between the workers registered as employed and those
registered as self-employed, and vice-versa
In view of the irregularity in received income, many independent workers are forced to switch not only between informal activities, but also between informal and formal
economy activities. In order to compensate this interchange between employed and self- employed work, either informal or formal, CCSS has generated a mechanism to ensure
independent workers portability in their contributions.