The Self–Employed-a critical The Self–Employed-a critical gap in the Caribbean social gap in the Caribbean social

security systemssecurity systems

Frank W. Alleyne GCM,Ph.D

Diversity of the self-employed Diversity of the self-employed classclass

Highly paid professionalsSmall business personsInformal sector own- account operatorsSmall farmersFisher folk

Social security challengesSocial security challenges

Coverage of both groups is problematic.

But it is a greater problem among the low income group.

Why is low coverage of the Why is low coverage of the self- employed a cause for self- employed a cause for

national concern?national concern?Undercuts the purpose of social security.Exposes vulnerable groups to hardships.Absence of a logical connection between

high lifetime earnings and the ability to plan for retirement.

Extent of coverageExtent of coverage

Statistical information is generally unavailable.

Estimated high of 22% -BarbadosLow of 7% in Dominica.

Self –employed status of Self –employed status of coveragecoverage

COUNTRY COVERAGE

Anguilla Mandatory

Antigua & Barbuda Mandatory

Bahamas Mandatory

Barbados Mandatory

Belize Voluntary

BVI Mandatory

Dominica Voluntary

Grenada Voluntary

Self-employed status of Self-employed status of coveragecoverage

COUNTRY COVERAGE

Guyana Mandatory

Jamaica Mandatory

Montserrrat Mandatory

St Christopher & Nevis Mandatory

St Lucia Voluntary

St Vincent & The Grenadines

Voluntary

Factors accounting for the Factors accounting for the coverage gapcoverage gap

Exclusion at the inception , appears to have generated a perception of discrimination.

Social security Boards` reservations with respect to manipulation of regulations.

Higher costs of premiums and lower levels of coverage.

No representation of the self-employed at the policy level.

Weak compliance mechanisms. Low levels of investment in public education.

Confronting the challengeConfronting the challenge

Reform governance system to include representatives of the self –employed.

Revise the necessary legislation to require that professionals and other established business persons who are required to register yearly, provide a certificate of compliance with the Social Security legislation.

Confronting the challenge Confronting the challenge (cont`d)(cont`d)

Conduct surveys to prioritize the needs of the self-employed for coverage.

Assist the self-employed in strengthening the capacity of their organizations to deliver education programs in partnership with the Social Security organizations.

Confronting the challenge Confronting the challenge (cont`d)(cont`d)

..Provide for flexible contribution systems to

accommodate individuals who experience irregular earnings patterns.

Provide for mandatory coverage and the compliance resources to give effect to the legislation.