Fedesarrollo proposes to make changes to the contributions to health care, pension and compensation funds in its labor reform to improve market indicators that promote job creation and reduce informality.
This proposal is part of the series of documents “What to do in public politics?”, published by Fedesarrollo, with a diagnosis of the Colombian labor market.
One of the most important proposals is the reform of social security contributions in health care. Currently, an employee has to contribute 4% of his salary and a self-employed person with 12.5% of his income to qualify for the contribution regime of health.
However, an employee may decide to remain in the informal sector, not contribute and in the subsidized regime get essentially the same benefits at no cost.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
