Presentation on theme: "The Self–Employed-a critical gap in the Caribbean social security systems Frank W. Alleyne GCM,Ph.D."— Presentation transcript:
The Self–Employed-a critical gap in the Caribbean social security systems Frank W. Alleyne GCM,Ph.D
Diversity of the self-employed class Highly paid professionals Small business persons Informal sector own- account operators Small farmers Fisher folk
Social 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 self- employed a cause for 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 coverage Statistical information is generally unavailable. Estimated high of 22% -Barbados Low of 7% in Dominica.
Self –employed status of coverage COUNTRYCOVERAGE AnguillaMandatory Antigua & BarbudaMandatory BahamasMandatory BarbadosMandatory BelizeVoluntary BVIMandatory DominicaVoluntary GrenadaVoluntary
Self-employed status of coverage COUNTRYCOVERAGE GuyanaMandatory JamaicaMandatory MontserrratMandatory St Christopher & NevisMandatory St LuciaVoluntary St Vincent & The Grenadines Voluntary
Factors accounting for the coverage 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 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 (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 (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.