Social Protection for the

Informal Economy Opportunities for Promoting Universal Access to Social Protection for All

Patience Matandiko, ILO- Lusaka CO

21st March 2018

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What is the Informal Economy

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The magnitude of the problem

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Right to Social Protection

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Social Protection -

Life Cycle Approach

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Informal Economy : Case of Zambia

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Informal Economy – Case of Zambia

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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…

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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

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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

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Promoting Awareness

• Practical awareness materials dissemination

• On-site sensitization campaigns

• Leverage on strengths and outreach of other actors (sectorial associations, trade unions)

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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

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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

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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

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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

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Recommendations

Umbrella: Social protection

Shade: Coverage

Butterfly: Informal economy

Transition

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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

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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