Extending social security coverage to self‐employed workers in Brazil

• Author: Julimar DA SILVA BICHARA,Rogério NAGAMINE COSTANZI,Edvaldo DUARTE BARBOSA
• DOI: http://doi.org/10.1111/j.1564-913X.2013.00193.x
• Published date: 01 December 2013
• Date: 01 December 2013

International Labour Review, Vol. 152 (2013), No. 3–4

Copyright © The authors 2013

Journal compilation and translation © International Labour Organization 2013

Extending social security coverage

to self-employed workers in Brazil

Rogério NAGAMINE COSTANZI,* Edvaldo DUARTE BARBOSA**

and Julimar DA SILVA BICHARA***

Abstract. Self-employed workers in Brazil are to a large extent excluded from

the national social security system. This article describes two programmes intro-

duced in the 200 0s that have achieved good results in terms of the “formaliza-

tion” and protection of these workers. The programmes offer microentrepreneurs

and self-employed workers simplied administrative procedures, commercial

benets (ability to take out bank loans and issue invoices) and levels of social

security contributions adapted to their incomes. The data provided by the authors

illustrate the effectiveness of the programmes, which could also be implemented

in other countries.

T

he traditional social security system in Brazil is geared to formal workers;

given the country’s current labour market conguration, social security

coverage has therefore only been partial. The system does not cover the un-

employed, undeclared rural and urban workers, or the different categories of

self-employed workers (Jaccoud, 2009).

Efforts to extend social protection, including the general social secur-

ity system, to groups of marginalized workers began in the late 1960s and

early 1970s and were stepped up under the 1988 Constitution. Experience

has shown that simply incorporating various occupations in the system does

not guarantee full access to the social security services and benets available

(Rangel et al., 2009).

As in the rest of Latin America, self-employed workers represent a large

proportion of those with no social protection in Brazil. According to the Na-

tional Household Sample Survey carried out by the Brazilian Institute of

*

Institute of Economic Research, University of São Paulo, and Director, Social Security De-

partment, Ministry of Social Security, email: rogerio.costanzi@previdencia.gov.br. **

Tax Auditor,

Inland Revenue Service, Ministry of Social Security; Coordinator, Social Security Policy Studies,

email: edvaldo.barbosa@previdencia.gov.br. *** Professor, Autonomous University of Madrid,

Department of Development and Structural Economics, email: julimar.dasilva@uam.es..

Responsibility for opinions expressed in signed articles rests solely with their authors, and

publication does not constitute an endorsement by the ILO.