Innovations in extending social insurance coverage to independent workers
27
Figure 5. Colombia: Workers by professional situation, 2009 percentage
Source: Drawn up by the author on the basis of the information given by the National Administrative Department of Statistics, 2010.
As figure 5 demonstrates, the percentage of independent workers represents, in relative terms, little over half the total employed workers in Colombia, marking this group
as particularly significant in terms of the countrys labour dynamics. Regarding the distribution of independent workers by professional situation, as shown
in table 5, below, own-account workers are the most important group 8,158,804 people, followed by employers 952,148 people, unpaid family workers 936,544 people, and
finally unpaid workers in other companies 91,545 people.
Table 6. Colombia: Distribution of independent workers, December, 2009
Professional situation People
Self-employed 8 158 804
80.47 Employer
952 149 9.39
Unpaid family worker 936 545
9.24 Unpaid worker in other companies
91 545 0.90
Total 10 139 043
100.00
Source: Drawn up by the author on the basis of the information given by the National Administrative Department of Statistics, 2010.
When analysing total independent workers by urban capital ―cabecera‖, it appears
that in urban areas or districtprovince capitals, self-employment has a participation rate of about 72 per cent, whereas in rural areas self-employment accounts for approximately 28
per cent of total independent workers. This conclusion is consistent with the findings of Farné et al. 2008 in their study on independent work and social insurance in Colombia in
2007, which establishes that urban independent work has shown a growing tendency over recent years.
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Colombia – Best practice in independent workers coverage
6.3. Social security coverage of independent workers
The registration of independent workers in the social security system has elements in common with the registration of employed workers, such as the requirement for mandatory
health and pensions schemes, and the specific contents of the benefit package, among others. However, it also shows some peculiarities. Table 6 describes the characteristics of
the contributory scheme for independent workers in the three main social security systems.
Table 7. Colombia: Registration characteristics by contributory scheme, independent workers
Subsystem Registration
Basic Contribution Income RBCa
Contribution rate Health
Mandatory Calculated on the basis of
declared income and no lower than one national minimum
salary b. 12.5
Pensions
Mandatory 16.0
Professional hazards Voluntary
Calculated on the basis of declared income and no lower
than two national minimum salaries.
The rate varies depending on the economic activity, on
a disabling injuries index, on accidents, and on the
occupational health programme.
Source: Drawn up by the author on the basis of current laws. Note:
a The RBC must be declared in advance, in order to settle contributions in February each year. b Health promoters take reference from a presumed income as a minimum basis calculated according to the level of education,
working experience, economic activity, area, and declared assets. Should income supersede such presumed income, contributions are based on the real income.
Regarding the levels of coverage of independent workers and their characteristics, it is important to review the conclusions presented by Farné et al. 2008 in their study on
independent workers and social insurance in Colombia in 2007. Among the main observations as regards the structure of independent work and its relation to social
insurance, it was found that, in the period under review, around 80 per cent of own-account workers were registered in the health system, whereas in the employers group this
percentage rose to 85.6 per cent. Regarding pensions, the former represented 6.4 per cent of total registrants and the latter 16.4 per cent. Registration in the professional hazards
system was lower in both cases, at only 4.6 per cent for own-account workers, and 14.5 per cent for employers.
Obviously, independent workers social coverage indicators are relatively optimistic. However, it is important to mention that many people who declared to be registered in the
social security system are in fact registered in the subsidized scheme, as beneficiaries ―contributors insured relatives‖
2
.
2
Those registered as beneficiaries include those who in spite of not making any contribution, are nevertheless covered by the General System of Social Security in Health as members of a family
household, and due to their kinship to andor economic dependence on a registered contributor.
