What I need to understand

The fourth step in your business’s formalization process is to complete the formalities related to the social security coverage
of employees and the employer as well.

1. What is social security?
There will be times in your life when, if you are not supported, it becomes difficult for you to cope. This is the case with
maternity/paternity, unemployment, work accidents, illness, disability, old age, etc. Social security is what protects you
in these situations. It is a universal right supported by policies and systems that aim to prevent poverty and vulnerability
throughout the life cycle.
Employers are legally bound to provide access to social security for their workers. However, many employees do not
receive any social protection benefits, which exposes them to various risks and makes them more vulnerable to shocks
such as illness, accidents and unemployment.
Social security is not just for employees. It applies to employers as well as workers and individuals. There are several forms
of social security systems: contributory schemes in which workers and employers pay regular contributions to receive
protection (e.g., social insurance schemes), non-contributory schemes (e.g., social assistance schemes) in which individuals
– especially the poorest or most vulnerable members of society – do not need to pay contributions to obtain benefits such
as cash or in-kind transfers.

2. What are the benefits of accessing social security?
What can you get if you, your workers and your family have access to social security?
X Income security and access to health care for workers and employers
Let’s look at the following situations that are addressed through social security:

X Better life chances for future generations
A good social security system looks after your health and that of your children and provides a minimum level of income
security to ensure basic needs such as sufficient food, educational materials or school fees. This increases your children’s
opportunities for personal development and can keep them out of poverty in future.

X Increased labour and business productivity
Paying social security contributions for workers means they will appreciate that you are paying on their behalf (and for
their protection) and may be less likely to miss work or less tempted to leave the company. In fact, they will be healthier,
more motivated and more satisfied with their working conditions. With a more productive business, your financial
performance can increase and you have more money to invest in important assets that help you grow your business.


3. What are the challenges to access social security?
While there are advantages for employers, employees and families, there are challenges when it comes to accessing social

Certain economic units and workers may be legally excluded from social protection. These include rural or migrant
workers and self-employed workers. Social security may also be subject to rules contingent on the size of the business, the
number of hours worked or the level of income. There is a specific problem when labour relations are misclassified, legally
uncertain and ambiguous, or obscured by other forms of employment. For example, when you are self-employed, but only
have one major client who decides when you should provide your services and at what cost


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