Greater proximity of the INPS to independent workers

26 Colombia – Best practice in independent workers coverage

6. Colombia

– Best practice in independent workers coverage

6.1. Characterization of the Colombian Social Security System

The major milestone in the recent development of the Colombian Social Security System is the enactment of Law n. º 100, of 1993 1 Law n.º 797, of 2003 revoked some of its provisions, re-establishing pre-existing laws and introducing changes with the aim of increasing population coverage. Thanks to this reform, two schemes were established: the contributory scheme, directed at people with economic capacity to contribute to social security, and the non- contributory State subsidized scheme, for all those lacking such a capacity. Formally, the Colombian social security system comprises three main pillars, summarily explained in table 4. Table 5. Colombia: Components of the Social Security System System General System of Social Security in Health SGSSS General System of Pensions General System of Occupational Hazards SGRP Description System responsible for the regulation of health services, and the promotion of population access at every level, in addition to the granting of cash benefits for disability, and maternity leaves to those belonging to the contributory scheme. System whose purpose is to protect the whole of the population against contingencies stemming from old age, disability, and death, based on the acknowledgement of the pensions and benefits established by law. It is the scheme protecting registered workers against working contingencies, such as work accidents or occupational diseases. Note: In addition, other systems are acknowledged, such as the Family Subsidy System, and the Unemployment Benefit System, which are irrelevant for the purposes of this paper. Source: Bertranou, 2009. Generally, the health and pensions subsystems have had the most impact in Colombia, with a number of common features between them. Such subsystems are the most relevant for the purposes of this paper. It is on their basis that we analyse the situation of independent workers, coverage indicators, and the most significant elements of such contributors coverage.

6.2. Independent work in Colombia

According to the data given by the National Administrative Department of Statistics 2010, in the course of the period December 2009 - February 2010, the total employed population numbered 18,742,208 people, of which around 54 per cent are independent workers, as illustrated in figure 5. 1 Congress of Colombia. Law n. º 100, of December 23, 1993, which creates the Integral Social Security System, and establishes further provisions. 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.