Pro-active approach to extending coverage to independent workers

Innovations in extending social insurance coverage to independent workers 25

5.3. Challenges

The progress achieved by Cape Verde in extending coverage to independent workers has occurred rapidly. However, a significant part of the extension strategy has yet to be implemented. As progress continues, INPS will probably face growing difficulty in increasing the number of contributors due to the fact that independent workers who remain excluded will have their precarious working conditions worsened, which evidently increases the registrations marginal cost. Nevertheless, within the context of sub-Saharan Africa, Cape Verde is an exceptional case in terms of recent innovations and experiences in extending social insurance coverage 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.