Colombian Pension Administrator
Colombia
Americas

BEPS Naranja: Extending social security coverage to informal workers in the creative economy through Periodic Financial Benefits (BEPS)

Implementation year
2018

In Colombia, 47.9 per cent of workers are employed informally and almost half of them earn less than the minimum wage, which is an obstacle to them making social security contributions. The national government has focussed on the Orange Economy, in which workers in the creative industries generate income based on intellectual property. Incomes, however, are predominantly low and employment is occasional, making this a vulnerable sector.

In order to offer alternative old-age protection, the Periodic Financial Benefits (Beneficios Económicos Periódicos − BEPS) system was established, operated by the Colombian Pension Administrator (Administradora Colombiana de Pensiones (Colpensiones)) since 2015. The BEPS Orange Strategy was established as a BEPS hallmark initiative in 2018 with the aim of extending cover to thousands of self-employed workers in the creative sector so they can obtain a lifelong income in their old age, depending on the capital they have accumulated. BEPS Orange has affected more than 18,000 people (about 5,000 adults at retirement age with a lifelong income) and leveraged around 44 million United States dollars (USD) to provide social security for this vulnerable population.

Topic:
Extension of coverage
Social policies & programmes