In Cabo Verde, many self-employed workers struggle to prioritize contributions to the social security system due to irregular income and limited financial resources. The country's social security system, managed by the Instituto Nacional de Previdência Social (INPS), faces challenges in reaching workers in the informal economy. Despite a legal framework for social protection, many workers remain uninsured.
According to data from 2023, only 5.1% of an estimated self-employed workforce are covered by the INPS's specific regime. A 2024 diagnosis by the INPS identified key obstacles to enrollment, including insufficient income, inadequate payment modalities, and lack of information. These factors contribute to low enrollment rates among self-employed workers.
Zuleica Pereira, a self-employed vendor, illustrates the dilemma faced by many workers. Although she pays a monthly contribution to maintain her social security coverage, she acknowledges that the value does not eliminate her difficulties. In contrast, Maria de Fátima, a fish vendor, has not enrolled in the INPS, citing concerns that the monthly contributions would compromise her daily expenses.
The INPS's 2024 diagnosis, titled "Diagnóstico da Extensão da Segurança Social a Trabalhadores de difícil cobertura em Cabo Verde," highlights the complexities of extending social protection to hard-to-reach workers. The study found that 59.2% of respondents cited insufficient monthly income as a barrier to enrollment, while 52.2% did not consider social security a priority given their available income.
Lack of information also hinders enrollment, with 54.3% of respondents expressing a lack of understanding about the importance of social security or the benefits provided by the INPS. Furthermore, 45.7% of respondents cited uncertainty about their long-term presence in the labor market as a barrier to enrollment.
Even among those enrolled in the INPS, irregular contributions are a significant issue. About 40% of respondents reported stopping contributions after initial enrollment. This trend is particularly pronounced among women (41.6%) and self-employed workers (42.1%). The INPS's director of planning and studies, Marcelino Monteiro, notes that interrupted contributions can negatively impact access to benefits and workers' overall social protection.
To address these challenges, Monteiro suggests that adjusting the contribution model to better align with the realities of self-employed workers may be necessary. The current regulatory framework is comprehensive, but its implementation and payment modalities may require revision. The debate on this issue is ongoing, with a focus on finding solutions that balance financial sustainability with the needs of workers in the informal economy.
Key points
- Only 5.1% of self-employed workers in Cabo Verde are enrolled in the country's social security system.
- Insufficient income, inadequate payment modalities, and lack of information are key barriers to enrollment.
- Interrupted contributions can negatively impact access to benefits and workers' overall social protection.
