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The Minister of Labor, Ángel Custodio Cabrera, defended Decree 1174 of 2020 that regulates the access and operation of the so-called Social Protection Floor in the face of the controversy it has generated and said that it is not a labor reform and does not create new modalities of hiring.
“The guarantees and working conditions in force today are respected and maintained,” said the minister.
He explained that with this decree what was done was to regulate article 193 of the National Development Plan that seeks to serve the segment of informal workers, who despite being economically active do not have a work contract or their employment relationship represents lower income. at a minimum wage.
Cabrera said that these people are unprotected and do not have social security or are contributing to their old-age pension.
He indicated that with the social protection floor, the possibility is given to people who do not have an income of a minimum monthly salary, and who do not have any coverage today, to have savings for the future through the Benefits program. Economic Periodicals (BEPS).
“Currently workers who earn less than a minimum wage for their activity do not have any social security coverage,” he said.
The lawyer Carolina Camacho, partner of Posse Herrera Ruiz, explains that the Social Protection Floor implies that people who hire workers or contractors with incomes below a minimum wage must pay the contribution to the BEPS program, which is equivalent to 15% of the income you receive on a monthly basis.
This contribution will be in addition to the agreed value to be paid for the development of the activity, without being discounted from the latter.
“This seeks to save so that these people when they reach the third age, although they will not have a pension equivalent to a minimum wage, they will have an economic benefit with a life annuity. It is a parallel system that provides coverage for pensions and occupational risks ”, added the expert.
From the contribution of 15% of the monthly income of the worker or contractor, 1% will be used to finance the Occupational Risk Fund, in order to meet the payment of the Inclusive Insurance premium.
Camacho added that “the Social Protection Floor is a very important step in the country’s labor formalization, since it is designed to cover people with lower incomes.”
The decree defines, among other matters, “part-time work” as “that performed by a worker who works for periods less than one calendar month or less than the legal maximum daily workday”.
Those who access the Social Protection Floor will have the Subsidized Health Scheme, the Complementary Social Service of BEPS, and the Inclusive Insurance that will protect them from the risks derived from work activity and from diseases covered by the BEPS.
They will have access to the Family Subsidy System, once it is regulated.
Likewise, it is mandatory for people who have one or more employment ties, and simultaneously, with one or more contracts for the provision of services, that they receive a total monthly income of less than a minimum wage after deducting expenses and costs.
Volunteers can be people who do not have a work relationship or have not signed a service provision contract, including producers in the agricultural sector and do not have the ability to pay to cover the total amount of the contribution to the Comprehensive Social Security System and whose total monthly income is less than a minimum.
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