More of 9.8 million people who work in a formal company or government institution in the country are in informal labor conditions. In other words, formal public and private organizations have not affiliated with the social Security to almost 31% of its subordinate personnel, according to the National Survey of Occupation and Employment (ENOE).
The president of the National Minimum Wage Commission, Luis Munguía Corella, called attention a few days ago to “an important issue that we should know more about: The informal work within formality. Much is said that half of the workers are in the informal sector, but of these, about a third work in formal companies (…) and pay Income Tax (ISR) every month to the SAT, only they have no security because their company does not register them with the IMSS,” he explained.
According to the data provided by the official on his Twitter account, between 2018 and the beginning of 2020, the proportion of informal workers in the formal sector was 32.5%, but with the pandemic it shot up to 36 percent. This behavior has moderated, but remains at levels close to 30 percent.
The information compiled by the ENOE reveals that companies, businesses and public and private institutions have left three out of 10 of their workers out of direct access to health services, savings for housing and retirement, protection for not be left without a job and without income in the event of an accident, illness or maternity, among other rights.
Data for the second quarter of 2022 indicate that 8.8 million people they work in the private initiative without social security. Meanwhile, almost 1 million more work for governments and other institutions at the service of the State under the same conditions.
Of every 10 people who work formally under informal conditions, four are women and six are men. In companies, most of the working population without labor rights and basic social services is a man (66%), while in government institutions it is women (54%) who are most vulnerable in this regard.
With more than 5.6 million workers —57% of the total— the formal tertiary sector It is the one that employs the most in informal conditions. These are work centers dedicated to commerce, tourism, transport, media and various services. It also includes legislative, governmental, justice administration and international organization activities.
In the primary sector More than 2.7 million people work in this condition, that is, 28 percent. And the remaining 15%, more than 1.4 million people, work in the sector industrial.
“Informality is an effect, it is not a cause,” says Rogelio Gómez Hermosillo, coordinator of the Observatory of Decent Work (OTD), in an interview. It is the result of the corruption of companies and authorities that do not respect labor human rights, it is a consequence of illegal subcontracting and also of a model in which “the social Security it is associated only with employment, and also with formal employment”, he explains.
Human rights vs labor benefits
At the 2002 International Labor Conference, the International Labor Organization (ILO) opened the debate on what until then had been considered as formal e informal. He pointed out that staff were not being considered “in formal companies that lacked social benefits despite the fact that the law required it,” the report says. Labor informality in Mexican entities in the 21st century: Possible explanatory factorspublished by the Inegi.
For 2012, the ILO defined that companies and workers in the informal sector are those who do not meet one or more of these conditions: not paying taxes, without a work contract, without social security benefits. However, “millions of workers pay ISR”, points out Rogelio Gómez. In this way, they are formal before the treasury, but informal in labor terms.
“There are various ways in which companies have managed to evade paying social security. Even the Ministry of Finance and Public Credit created a very rare modality, a legal loophole, to pay ISR without social security and it is the income assimilated to the salary, ”he detailed.
Therefore, “the informal economy It refers to workers who work both in the informal sector and in formal companies, but work without a contract or do not receive benefits established by law, which in Mexico represents just over 57% of the employed population”, point out the researchers Mario Camberos and Joaquín Bracamontes in the report published by Inegi.
In short, says Rogelio Gómez, the informal economy encompasses “people who work without labor rights”. But that is possible thanks to a system “where you can work without rights and without much defense, since nine out of 10 do not have a union organization and if they are in one, it is probably a white union.”
But it is also a consequence of a social security system linked to employment and formal employment, adds the sociologist and consultant to the World Bank (WB). “It is a model that is applied in almost the entire world and that has already shown, throughout the world, that it is only a incentive for informality”.
access to the social Security It includes:
- Medical and hospital care, medicines and rehabilitation
- retirement savings
- Savings and credit for housing
- Child care, vacation centers and recreational activities
- Pregnancy, childbirth and postpartum care
- Paid maternity leave
- Pensions in case of disability due to accident or illness,
- Pension for the family due to the death of the worker
- Retirement by age, years of service or retirement with a life pension
- Paid disabilities or without the risk of losing employment due to absence
“All that: health, housing, are universal human rightsthey should not be a benefit, ”says the specialist.
But in Mexico, as in many other countries, “we wanted to finance them with payroll tax, with worker-employer fees, charging the expense to employment.” That path excludes millions “and encourage informality because it causes an expense to the companies”, he maintains.
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