Decree 1174 does not bring new forms of hiring or hourly work – Economy



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The government regulated the Social Protection Floor, which from February of next year will bring the possibility of health coverage, occupational hazards and protection in old age to workers who do not reach a minimum wage.

Is it new forms of hiring, a change in the pension scheme or new rules for formal workers? Will there be hourly contracts?

These are responses about Decree 1174 directed at people who earn less than a minimum wage doing specific work in various activities such as day laborers, farm workers, helpers, harvest gatherers, among others.

(Also: In Bogotá, the unemployed increased more than double than in the entire country)

Were new forms of hiring created?

Decree 1174 of August 27, 2020 does not establish new contracting modalities. The working conditions in force today are maintained. It is not a labor reform.

Are there changes in pensions?

Pension regimes remain the same. Meanwhile, the possibility that those who earn less than a minimum wage can save for old age through periodic economic benefits (BEP) is regulated. People who are in the informal sector and then get a formal job will be able to add to their contribution the
pension system what is contributed to the social protection floor.

(You can also read: This is how companies prepare to safely get back on track)

Is hiring by hours allowed?

No, because the existing labor standards remain the same. The possibility of social security is recognized for those who, due to different circumstances of their work, do not reach an income of a minimum monthly salary.

Are there changes for full-time workers?

The working conditions of those who work full time are not modified. The decree establishes benefits for people who, due to their activities, have income below a minimum monthly salary.

Could it be hired without limit below the minimum wage?

How the social protection floor does not alter labor standards on benefits
social, the minimum wage is respected, while the decree offers an alternative to those who have incomes below the minimum wage and cannot save for their old age.

(You may be interested in reading: This is the average salary of Colombia compared to other countries)

Is it allowed not to enroll in social security those who do not manage to receive a minimum?

Currently, those who, due to their activity, have an income below the minimum wage do not have any social security coverage. The social protection floor gives them that possibility and that of saving for the future.

What about current social protection systems?

The current systems are maintained, with their conditions, and this new additional saving and protection mechanism is added to them.

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