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The Ministry of Labor announced that those people who earn a monthly income below a minimum wage, as a result of their partial dedication to a job, trade or economic activity, they will have the benefits and guarantees of the Social Protection Floor (Decree 1174 of August 27, 2020), which regulates article 193 of the National Development Plan.
This mechanism gives these people income to subsidized health, to the Complementary Social Service of Periodic Economic Benefits (BEPS), as a protection mechanism in old age, and the Inclusive Insurance, which will protect the worker from the risks derived from the work activity.
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Similarly, dependent workers that they link to this Social Protection Floor They will have access to the Family Subsidy System, once it is regulated.
According to the Ministry of Labor, the mechanism will have mandatory and voluntary members. In the first case, it will be the workers and contractors who, as a result of their part-time dedication, receive income below a minimum wage. The second case refers to those people who do not have a labor or contractual relationship, and who receive an income of less than one minimum salary, including producers in the agricultural sector.
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The contribution must be made monthly by the employer or contractor, as appropriate, and may be made at any time during the month in which the activity takes place.
It is necessary that the contribution be monthly, because the Base Contribution Income is calculated monthly and depending on the income, the person must be affiliated with the Social Security System (if earning income equal to or greater than a minimum wage) or linked to Social Protection Floor (if you receive income below a monthly minimum wage), in order to establish coexistence between the systems.
The amount that will be in charge of the employer or contractor will be equivalent to 15% of the beneficiary’s monthly income in the period in which said contribution is made, a value that will be in addition to the amount agreed to be paid for the development of the activity.
The distribution of the contributions of 14 points that will be credited in the individual savings account of the linked BEPS and the remaining point will be used to pay the Inclusive Insurance premium.
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The Special Administrative Unit for Pension Management and Social Protection Parafiscal Contributions (UGPP) will be in charge of supervising employers who have workers affiliated with the social security system in the contributory regime, and who with the purpose of obtaining benefit from The reduction of their social security contributions from one term to the other worsen the economic conditions of these employees, through the implementation of acts or artificial businesses or any other irregularity against the General Social Security System.
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