Integrated Form for Contribution Settlement PILA
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Colombia – Best practice in independent workers coverage
The enactment of Law n. º 100, of 1993, and subsequently of Law n. º 797, of 2003, determined the framework guidelines for the social security system and its different
subsystems. However, many such guidelines were not practicable, and the laws were rigid. In subsequent years, a number of decrees from the Colombian authorities have led to a
series of regulatory changes which have significantly favoured independent workers.
Firstly, it was found that the laws according to which independent workers declared their Basic Contribution Income IBC only allowed them to make such a declaration in
January, preventing them from making any changes throughout the year. This rule was made flexible in order to take into account the productive cycles and variations the
economic activity over the course of the year. This enables such workers to make changes to their IBC, and declare it at PILA, according to their individual economic situation.
The greatest benefit of this measure lies in the fact that it allows independent workers to adjust their income. Due to the structural characteristics of their economic activity, they
are prone to experience difficult economic situations which may result in the reduction of their income, and consequently of their contributory capacity.
In this vein, we should also highlight another element of the social security registration law which benefits independent workers. The News Report, an information
note which may be drafted by independent workers as well as by employers allows workers to describe any circumstances partially or permanently affecting the amount to be
cancelled at the EPS. With this tool, independent workers have been given an important legal tool which allows them to conform to the law while taking into account any
fluctuations which may occur in their economic activity, and which may affect the status of their registration in social security.
Another noted change introduced in Colombian laws is the possibility given to independent workers to contribute to the health scheme with no mandatory requirement to
contribute simultaneously to the pensions‘ scheme, according to their financial situation. This measure was adopted with the purpose of providing individuals lacking contributory
capacity to make payments to both subsystems which are mandatory, as previously mentioned with the possibility of choosing at least the benefits of the health subsystem.
In conclusion, it is remarkable that in recent years there has been a marked effort to implement legal changes, and that an extensive effort has been made to maintain and
extend the contributory coverage of independent workers in the Colombian social security system. It is expected that such changes are reflected in future indicators for this area, and
that they may enable significant improvement in the coverage of independent workers.
Innovations in extending social insurance coverage to independent workers
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