Four out of ten companies that operate outside the formal market are more than 15 years old, which reflects the fact that for many of them, informality is not something transitory, but permanent.
A study by the Costa Rican Union of Chambers and Associations of the Private Business Sector (Uccaep) revealed that one of the main reasons why many business units that operate in the informal sector decide to continue doing so is the high cost of social charges.
The union of builders is opposed a bill creating a paid paternity leave for workers, arguing that there would be economic repercussions for businesses.
From a statement issued by the Panamanian Chamber of Construction:
The Panamanian Chamber of Construction described the measure as being inconsiderate of the large economic impact it would have on companies, after the initiative was put forward by the Minister of Labor and Workforce Development (MITRADEL), detailing the creation of paid parental leave for workers with the intention of maintaining an egalitarian gender policy with regard to women.
Radical changes will create five regimes: Social Protection Floor, Social Security Prevision, Insurance Health Care, Professional Risk Insurance and Labor Insurance Coverage .
An article on Latribuna.hn reports that "... The new legal framework will take effect in the next 45 days and will give rise to the approval of four special laws that will regulate the scope of these principles. "
Employers argue that the high costs of energy, transportation and social contributions are affecting performance of the sector.
The high costs of transportation, electricity and the new increase in employer social security contributions is threatening the industrial sector, despite the fact that in 2013 it grew by 4.6%. These factors, according to Rodrigo Caldera, president of the Chamber of Industries (Cadin), are preventing further growth of the sector.
In order to balance the social security finances the Government of Nicaragua wants to increase employer's contributions from 16% to 19% .
Bayardo Arce, economic affairs adviser to the President, was the person who presented the project to representatives of the Superior Council of Private Enterprise (Cosep).
The Social Security Department in Panama is deferring for four months payments of the employer quotas.
According to Roberto Troncoso, president of the Panamanian Association of Business Executives, the "moratorium by the Social Security Department (CSS by its initials in Spanish) creates a bad habit" among irresponsible employers.
The COSEP of Nicaragua and the government are reviewing issues such as future tax reforms and social security, the new agreement with the IMF and the adjustments to the electricity tariff.
The Superior Council of Private Enterprise (COSEP) recently met with the counselor for Economic Affairs of the Presidency, Bayardo Arce Castaño.
The Guatemalan Social Security Institute (IGSS) has granted an additional 90 days exemption from fines for those companies who do not pay employer and employee contributions on time.
The additional period granted by the IGSS began on Sunday, April 1st, under agreement 1284 published by the public record newspaper Diario de Centro América. The first agreement exemption, 1270, was issued in September 2011 and has now expired, reported Prensalibre.com.
Businesses are suggesting putting Social Security Department (CCSS) in order before increasing the compulsory contribution of employers and workers to solve their funding problems.
A press release from the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) states:
• The UCCAEP Committee concludes that the main CCSS problem is inadequate administration
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