Innovations in extending social insurance coverage to independent workers
75 ■
―De facto‖ companies, when any of their partners is simultaneously a partner and a director.
■
Those who provide personal services outside the dependency relationship, either individually or in a partnership.
■
Limited liability companies, public limited companies, cooperatives, social cooperatives, non-profit civil associations, non-governmental organizations,
foundations, rural companies, construction companies, companies which market clothing in shopping centres, exhibitions, fairs and the like, embassy and international
organization officials, employers of domestic services.
■
Retirees due to working incapacity in any job. To ensure compliance with the above and guarantee that workers wishing to evade
taxes are not included in the Monotributo scheme, strong control mechanisms were established, including: i Credit card issuers must report monthly to the BPS and the
General Revenue Administration DGI on the operations of Monotributo scheme contributors; ii State agencies must report to the BPS and the DGI on what the
Monotributo scheme contributors consume or pay for public services; iii To extend the scope of the licenses related to economic activities covered by the Monotributo scheme,
Municipalities must coordinate with the DGI and the BPS; iv At the place where their activity is developed, Monotributo scheme contributors must reveal the grounds for their
registration with the DGI and the BPS, the last contribution payment receipt, and the documents certifying the origin and existence of the goods. The latter are essential for
departmental governments to grant and renew the licences allowing the development of the activities; v Registration may be made in all branches of the DGI and the BPS, through a
single and unique form. Therefore, if it is found that the contributor does not belong to the Monotributo scheme, heshe loses all rights, and must pay Value Added Tax, Income Tax
of Economic Activities, and Wealth Tax.
11.3. Lessons to be learned and future challenges
Table 18 demonstrates the evolution of the companies contributing to Uruguays social security system from 2002 to 2009, divided according to their size one-person
business, small, medium, and large. With the aim of reflecting the effect of the Monotributo schemes reform on the coverage of independent workers, this analysis was
subdivided into two periods: 2002-2006 pre-reform and 2007-2009 post reform.
As can be seen, in the period subsequent to the reform 2007-2009, the average annual number of contributory one-person businesses reached 68,588, i.e. 12,722 more
than the average annual number of contributor one-person businesses registered in the previous period 55,866. Nevertheless, in terms of average growth between periods, one-
person businesses are the companies registering the most momentum 5.1 per cent, followed by small companies, with only 1.7 per cent. As a consequence, the relative share
of one-person businesses regarding the total of contributing companies increased about 2.0 per cent.
76
Uruguay - The inclusion of independent workers in the Monotributo scheme
Table 20. Uruguay: Evolution of companies contributing to Social Security according to size, periods of
2003-2006, 2007-2009
Medium Company Size
2002 2003
2004 2005
2006 2007
2008 2009 2002-2006 2007-2009 Difference
Total 142 628 141 375 143 654 149 707 155 008 164 120 175 909 176 670 146 474 172 233
25 759
One-person 56 111 54 418 53 885 55 899 59 015 63 870 70 909 70 984
55 866 68 588
12 722 Micro
65 880 66 954 68 557 70 899 71 453 74 143 76 856 76 467 68 749
75 822 7 073
Small 17 191 16 591 17 506 18 775 20 020 21 215 22 766 23 653
18 017 22 545
4 528 Medium
2 952 2 927
3 187 3 566
3 878 4 185
4 614 4 791
3 302 4 530
1 228 Large
494 485
519 568
642 707
764 775
542 749
207
Growth rate -0.9
1.6 4.2
3.5 5.9
7.2 0.4
2.1 4.5
2.4
One-person -3.0
-1.0 3.7
5.6 8.2 11.0
0.1 1.3
6.5 5.1
Micro 1.6
2.4 3.4
0.8 3.8
3.7 -0.5
2.1 2.3
0.3 Small
-3.5 5.5
7.2 6.6
6.0 7.3
3.9 4.0
5.7 1.7
Medium -0.8
8.9 11.9 8.7
7.9 10.3 3.8
7.2 7.3
0.2 Large
-1.8 7.0
9.4 13.0 10.1 8.1
1.4 6.9
6.5 -0.4
Relative share 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
100.0 100.0
0.0
One-person 39.3 38.5 37.5 37.3 38.1 38.9 40.3 40.2
38.2 39.8
1.7 Micro
46.2 47.4 47.7 47.4 46.1 45.2 43.7 43.3 46.9
44.0 -2.9
Small 12.1 11.7 12.2 12.5 12.9 12.9 12.9 13.4
12.3 13.1
0.8 Medium
2.1 2.1
2.2 2.4
2.5 2.5
2.6 2.7
2.2 2.6
0.4 Large
0.3 0.3
0.4 0.4
0.4 0.4
0.4 0.4
0.4 0.4
0.1
Source: BPS Instituto de Seguridad Social, 2010.
Through further breakdown, table 19 compares the evolution of contributing one- person businesses and micro companies by economic activity, between the periods of pre-
and post- reform. As shown, the evolution was positive for most activities, and was particularly important in one-person businesses engaged in trade, repair of vehicles cars
and motorcycles, agricultural production, reforestation and fishing, which jointly absorb 52.2 per cent of the total number of companies of this type.
