Innovations in extending social insurance coverage to independent workers
77
Table 21. Uruguay: Evolution of one-person businesses and micro companies contributing to the
Social Security by branch of economic activity, periods of 2003-2006, 2007-2009
Relative Average amount Average growth
Activity weight
2003-2006 2007-2009 2003-2006 2007-2009 Difference
Total of contributing one-person businesses 100.0
55 866 68 588
1.3 6.5
5.1
Trade, repair of auto vehicles and motorcycles 27.0
12 815 18 161
5.9 8.6
2.7 Agriculture, animal husbandry, forestry and fishing
25.2 16 788
18 034 -0.7
2.4 3.1
Professional, scientific, and technical activities 6.6
2 997 4 334
0.4 14.7
14.3 Transportation and storage
6.5 4 883
4 818 -1.3
-1.4 -0.1
Manufacturing Industries 6.5
3 106 4 380
5.1 9.7
4.5 Other service activities
5.9 2 689
3 668 0.9
14.0 13.2
Construction 3.7
1 612 2 472
5.8 11.5
5.7 Social services and health related services
3.1 1 744
2 095 -1.9
8.7 10.6
Computing and communication 2.9
1 620 1 930
-3.9 11.0
14.9 Administrative activities and support services
2.3 1 268
1 517 -3.7
11.1 14.8
Accommodation and catering 2.0
884 1 342
8.5 8.6
0.1 Real estate activities
1.7 966
1 165 3.1
3.6 0.6
Artistic, show, and recreational activities 1.6
694 1 100
8.8 11.1
2.4 Education
1.6 732
990 2.6
12.2 9.7
Financial and insurance activities 1.4
1 119 1 039
-1.3 -1.8
-0.5 Other activities
2.0 1 949
1 543 -6.2
-6.0 0.2
Total of contributing micro companies 100.0
71 401 75 822
2.1 2.3
0.3
Agriculture, animal husbandry, forestry and fishing 35.3
28 682 28 095
0.5 -2.5
-3.1 Trade, repair of auto vehicles and motorcycles
21.0 13 245
15 271 4.3
6.3 2.0
Transportation and storage 9.6
6 461 7 176
3.8 4.2
0.4 Real estate activities
6.2 4 431
4 647 0.0
2.9 3.0
Manufacturing Industries 5.4
3 740 4 146
4.4 3.0
-1.4 Other service activities
4.5 3 294
3 197 0.1
6.8 6.8
Professional, scientific, and technical activities 4.2
2 613 3 081
5.3 7.1
1.9 Accommodation and catering
2.2 1 331
1 612 4.9
9.6 4.7
Social services and health related services 1.9
1 335 1 467
2.8 3.5
0.6 Construction
1.9 1 028
1 306 5.1
12.7 7.6
Administrative activities and support services 1.6
876 1 102
5.8 11.7
6.0 Other unspecified activities
1.3 1 058
981 -1.8
-3.1 -1.3
Computing and Communication 1.1
665 819
9.5 7.2
-2.3 Artistic, show, and recreational activities
1.0 596
693 5.5
5.9 0.4
Education 0.8
564 578
0.4 4.8
4.4 Other activities
2.1 1 483
1 662 3.1
3.1 0.0
Source: Source: BPS Instituto de Seguridad Social, 2010.
Therefore, even considering that the reform is relatively recent, these results show that the Monotributo scheme has effectively reached a vulnerable group of workers such
as craftspeople, locksmiths, carpenters, grinders, weavers, photographers, blacksmiths,
78
Uruguay - The inclusion of independent workers in the Monotributo scheme
welders, and car washers, among others, favouring their coverage and inclusion. It is possible to infer that the incorporation of new operating conditions in this scheme
significantly contributed to achieving this result. Such new conditions include: i both family and non-family
―de facto‖ companies; ii the limitation to three dependents in the case of seasonal or fixed activities; iii small manual artisanal production; iv small
locations; v sales to private companies and the State; vi sales through credit cards; vii a greater limitation of annual income, viii the calculation basis for the Monotributo; ix the
development of more than one activity by rural workers, and x the profile of the retirees authorized to register in the Monotributo scheme.
In this sense, the main lesson of this scheme is that, in different contexts characterized by the diversity of socio-economic profiles, the designing of more flexible financing
mechanisms may be a valuable tool to achieve social inclusion. Furthermore, this scheme has demonstrated the potential for a strategic alliance between social security institutions
and the authorities in charge of tax collecting.
Since Uruguay was able to significantly increase the percentage of decent and protected work in sectors of society which had been previously excluded from social
security coverage, the country now faces the challenge to consolidate the large reforms implemented in the last years. These reforms must be carried out within the scope of the
new social protection system, enabling to extend the systems universal coverage.
