Labor informality poses risks to social security and worker rights

Labor informality and the decline of formal employment are emerging as significant economic challenges in various regions. In Colombia, the Aliadas – Alianza de Asociaciones y Gremios, led by María Claudia Lacouture, has presented a roadmap titled ‘De la informalidad laboral a los caminos hacia la formalidad’ to the government. The proposal highlights that informality affects 54.5% of the national workforce, rising to 83.2% in rural areas. The roadmap suggests 30 alternatives, including simplified digital tools and proportional contribution schemes, to help workers access social security and benefits.

In other contexts, researchers such as Luis Campos from the Instituto de Estudios y Formación (IEF) warn that the shift from registered employment to self-employment and informal work threatens the sustainability of collective protection systems. The decrease in formal contributions from workers can jeopardize the long-term financing of pensions and family allowances, as informal workers typically contribute significantly less to social security than salaried employees.