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Social Protection for the
Informal Economy Opportunities for Promoting Universal Access to Social Protection for All
Patience Matandiko, ILO- Lusaka CO
21st March 2018
TITLE | 2
What is the Informal Economy
TITLE | 3
The magnitude of the problem
TITLE | 4
Right to Social Protection
TITLE | 5
Social Protection -
Life Cycle Approach
TITLE | 6
Informal Economy : Case of Zambia
TITLE | 7
Informal Economy – Case of Zambia
TITLE | 8
Case: In Zambia, majority of workers in construction sector are informally employed despite their essential contribution to economic growth.
“The result is when you get injured youhave no where to run to. You are simplydisposed of”
When they get sick, these workers need topay for their medical fees using theirown money, when they get old they haveto depend on their family and theircommunity.”
Informal Economy – Case of Zambia• Agriculture
• Construction…
TITLE | 9
Social Protection for All:
An economic sector lens
Zambia Green Jobs Programme
• Integrating Social protectionpractice in measures & responsesto promote sustainable businessesand Enterprises
• Objective: Strengthening access to social protection for vulnerable workers & families in the building construction sector
• Strategies: Increasing awareness, coverage and compliance to social security standards
Video:
https://www.youtube.com/watch?v=OIuRvljeVX8
TITLE | 10
Building Evidence
Studies
• SP risks and needs
• Good Working Conditions make Good Business
Social Dialogue
• Challenges and Potential policy options
• Raising Awareness on
Importance of Social
protection
• Visibility in policy setting
government, social partners
and civil society Key role of
Employers and Workers
TITLE | 11
Promoting Awareness
• Practical awareness materials dissemination
• On-site sensitization campaigns
• Leverage on strengths and outreach of other actors (sectorial associations, trade unions)
TITLE | 12
SP Capacity Building for MSMEs
Contractors
Promoting knowledge on therights and duties of workersand employers
• Social Protection Employers Seminars
• SP Focal point persons trained:
• Social security basic record keeping,
• monitoring and evaluation
TITLE | 13
Increasing Access to Soc Sec
Services
Joint Implementation ServiceDelivery
• Partnerships NAPSA & WCFCB
• Single window approach Flexible administrative arrangements
• Easy and convenient mobile registration operations
• Supporting compliance
TITLE | 14
Improving Quality of Jobs &
Productivity
Extension of social protection coverage
Improves the situation of workers in the informal economy
Contributes to facilitating their transition to the formal economy
Benefits for workers, enterprises and societies at large
TITLE | 15
Policy changes
Replication to other sectors
National Pension Scheme StrategicPlan - Extension to Agriculture sector
Impact: Coverage and adequacy ofsocial protection expanded• Leverage Aggregators• Innovative and attractive benefits
packages i.e. mix of old age andshort term benefits and incentivessuch as access to credit
Outcome: Strengthened capacity ofNAPSA and partners
Social security reforms
• Development of Social ProtectionBill
• Technical Working Group -extension of coverage to IE
• Roadmap on extension ofsocial protection coverage
• National strategy on extension ofsocial protection to the informalsector
• Universal, government led
approach
• Principal of progressive
realization
TITLE | 16
Recommendations
Umbrella: Social protection
Shade: Coverage
Butterfly: Informal economy
Transition
TITLE | 17
Opportunities
• Promoting culture of social security
• Pilot Actions to extend coverage to informal economy
• Innovating by doing: Learning and Policy Lab on coverage of informal workers– Problem specification
– Identification of practices
– Trying practical solutions
– Learning
Recommendations
TITLE | 18
Recommendation
ADAPT SP BENEFIT PACKAGE TO THE INFORMAL ECONOMY
SUBSIDIZE CONTRIBUTIONS
INNOVATIVE DELIVERY MECHANISMS
CREATIVE INCENTIVES TO FORMALIZATION
Progressive realization
Financial accessibility
Solidarity
Universality
Cost-efficiencyInclusive Development &
Decent work
Equity
THANK YOU FOR YOUR TIME