Bill to promote formal employment, eliminate barriers and anti-competitive practices
The initiative proposes to modify the destination of the employer's contribution of 0.25% of remuneration, which is currently not transferred to the worker's individual supplementary pension fund and remains in the Banco Popular y de Desarrollo Comunal. The project seeks to have this percentage transferred immediately to the pension operator selected by the worker.
It is based on the premise that the employer's 0.25% does not represent a direct benefit for the worker within the ROP scheme, which, according to the bill, would deviate from the original purpose of the Workers' Protection Law, aimed at strengthening pension rights and benefits.
It is further argued that:
- The regulation was not conceived to increase the income of financial institutions, but to strengthen individual savings.
- The deviation of that 0.25% could imply an estimated impact of up to 7% on the final amount of the supplementary pension.
- There would be no up-to-date technical justification for keeping these resources in the Banco Popular.
From this point of view, the reform would not only strengthen workers' individual savings, but would also contribute, according to its promoters, to alleviating employers' social security charges and encouraging formal employment.
The bill amends Article 13 of the Workers' Protection Act, relating to the resources of the Compulsory Supplementary Pension Scheme, maintaining:
- The contribution of 1% per month to be paid by the worker.
- The contribution of 0.25% per month to be paid by the employer, the branches of government and public institutions.
The bill expressly stipulates that the resources corresponding to both sections shall be transferred immediately, through the Centralised Collection System (SICERE), to the pension operator chosen by the worker, in accordance with article 31 of the Constitutive Law of the CCSS.
In addition, article 3 of the bill proposes to repeal articles 5, 6, 12 and 13 of the Organic Law of the Banco Popular y de Desarrollo Comunal (Law No. 4351), thus eliminating the regulatory basis that allows the current use of these resources.
The elimination of excessive social charges is what the promoters of this project have considered to be an essential element for the promotion of formal work, by facilitating employability and reducing costs.