Mexico "stuck" in contributors to social security pensions: ILO



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Mexico is the least advantaged country in contributory coverage that is, in pensions obtained by persons who contributed to the system throughout their working lives during the decade 2005 -2015 in the Latin America region, according to the International Labor Organization (ILO).

This type of pension is mainly badociated with workers in the formal sector. The institutions that grant this type of pension are IMSS, ISSSTE, ISSFAM, PEMEX, CFE state and municipal regimes.

The report "Overview of Work, Present and Future of Social Protection in Latin America and the Caribbean", indicates that average contributory coverage in the region, that is, to say employment-related contributors as a proportion of the employed population went from 36.6% in 2005 to 44.6% in 2015, which implied an increase of 8 percentage points in a decade.

This means that for 2015 in Latin America 145 million workers did not contribute to a contributory pension and no longer benefit from social protection.

However, during this period, Mexico practically stagnated because while in 2005, 30.4% of workers contributed to a contributory pension, in 2015, it barely reached 31.6%, which means an increase of only 1.2 percentage points in 10 years.

On the other hand, during the same period Uruguay managed to increase its coverage from to 61.6% during the reference period, placing it as countries of the entire region with the largest contributory coverage, that is, 7.5 out of 10 workers contribute to a pension.

In 2015, Chile is the second country in the region with the highest percentage of contributors who contributed with 67.8% of workers, and third Costa Rica with 68.1% cover.

Bolivia, Honduras and Guatemala were countries that, although they increased their contributory coverage between 2005 and 2010, the percentage of the population contributing to a pension remains low, since three cases less than 20 the percentage of employed persons contributes to a pension.

José Manuel Salazar-Xirinachs, ILO Regional Director for Latin America and the Caribbean, said the progress of countries like Mexico "are modest" in the face of the challenge of construction of a welfare system, so he urged nations to take short-term action to reduce levels of poverty and inequality.

At a press conference, he stressed that political will and economic growth in general in Latin America are necessary to promote the necessary changes in social security .

"There are data from Mexico that from 1996 to 2016 have increased on average by 2.1% a growth that is not bad but that is weak and that does not allow to the fiscal space to finance social security extensions, makes it more difficult, "he said.

For his part, Fabio Bertranou, director of the Decent Work Team for the Southern Cone, explained that the rest of the countries that advanced in the contributory coverage was because there was more creation of formal employment through formalization policies.

Similarly, in other countries, self-employed and domestic workers and small businesses were integrated into social security through specific programs and institutionalization was greater, namely respect laws guaranteeing a decent job.

In Mexico, domestic workers do not count as compulsory social security and self-employed workers are not affiliated with the Mexican Social Security Institute, in either case they may be incorporated voluntarily.

Helmut Schwarzer, Senior Specialist Social Protection and Economic Development of the ILO Office for Mexico and Cuba, stressed that the level of informality in Mexico is still high and that There have been sectors sectors formalizing employment, are "isolated" cases and the coverage needs to be expanded

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