Production of services Type and maximum number of authorized business activities
72
Uruguay - The inclusion of independent workers in the Monotributo scheme
11.2.7. Monthly amount of the Monotributo scheme, and allocation computable in the social security system
Before the reform, the establishment of the monthly amount to be paid by the companies registered in the Monotributo scheme
14
and the corresponding allocation computable in the social security system was calculated based on the applicable rates of
social security contributions and taxes charged by the BPS excluding the Mutual Quota Supplement, unless the contributor chose it on a fixed salary equivalent to a national
minimum salary. After the reform, the monthly amount contributed under Monotributo, and its respective allocation to the social security system results from the application of the
sum of the rates of the taxes charged by the BPS
15
on the basis of a fixed salary of five Contribution Fixed Bases BFC
16
. As illustrated in table 17, the Executive may increase the fixed salary on a scale of six to ten BFC, according to the developed activities, the size
of the location, and other indexes
17
.
Table 18. Uruguay: Monthly Monotributo amount according to the contribution fixed base level, 2007- Pesos
Fixed Salary U
Monotributo amount without mutual quota supplement U
Monotributo amount with mutual quota supplement U
5 BFC = 1 367 419
1 237 6 BFC = 1 640
503 1 299
7 BFC = 1 914 586
1 360 8 BFC = 2 187
670 1 422
9 BFC = 2 461 754
1 484 10 BFC = 2 734
837 1 545
Source: BPS Instituto de Seguridad Social, 2007.
It should be noted that contributors to the Monotributo scheme maintain all the rights stemming from their registration in the social security system through the BPS. In this
sense, they have the right to the calculation of the period of activity for the grant of a benefit, or to increase it should they already have it. Nevertheless, the contributors to the
Monotributo scheme who choose to pay the Mutual Quota Supplement CCM have access to Social Protection, and to its supplementary benefits for example: prostheses and lenses
coverage, subsidies for treating of circulatory infections, wheelchairs, prosthetic limbs, hearing aids.
One-person businesses with no dependents and with a family household income under three BFC are entitled to a family benefit from the new Family Benefit System. Under the
14
This single tax excludes the social security contributions and taxes applicable on the remunerations of dependent workers.
15
Excluding the Mutual Quota Supplement.
16
After the reform, there is still an incentive of returning a monthly annual quota for contributors paying at the end of each month, and by automatic debit to their bank accounts or with credit card.
17
The existence of a co-working spouse or a cohabiting partner for one-person businesses or of partners determines an identical additional employers contribution due for the activity of each one
of such members.
Innovations in extending social insurance coverage to independent workers
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category of ―social Monotributo‖, the workers included on the National Register of
Promoters of Local Development and Social Economy of the Ministry of Social Development are exempt from contributing to the retirement pension, and pay 50 per cent
of the contribution for social works, U35 by registration holder, and the same amount for each covered family member.