Press Release 1535 by undul855


									President announces formalization of 400 000 MSEs and employment
benefits for millions of workers
    Thanks to MSEs Promotion Law that was announced by the Government. He said this is a
 "historic and popular" norm because it boosts population and country’s growth. The president
called on small and micro entrepreneurs to apply law because the State will assume half of social
   insurance contributions of workers. He pointed out that in the last two years one and a half
             million members have been incorporated in the public health insurance.

Press Release 1535

Micro and Small Enterprises (MSEs) Promotion Law announced by the Government is a "historic
and revolutionary" norm because it will allow the formalization of 400 000 productive units and
will give employment benefits to millions of workers, Peru’s president Alan García said today.

He said that under this rule, the State will grant facilities to allow the legalization of MSEs and, in
this way, to get out of the "slavery of the 21st Century", which is the informality.

"That will represent 800 million soles of expenditure, but it will also represent the possibility that
we have millions of workers formalized, insured, with retirement rights, who can work 8 hours
and have vacations", he said.

After saying this is the most "popular" mechanism that has occurred since many years, the
president called for micro and small entrepreneurs to apply the law and to give employment
benefits to their workers.

"Thus, small businesses can help themselves because they leave the underground, access to bank
credit, boost the national economy, encourage their workers and reduce production costs", he


The president pointed out the State will assume half of the value of the public health insurance
monthly contribution, and thus this will allow the formalization of the small and micro
entrepreneur without affecting its business.

"The most important of this law is that the State tells worker: you can have a retirement, small
entrepreneur registers your employee and yourself because you are an employer who works, you
can have a retirement and a half of what you have to pay each month will be paid by the State",
he said.

García expressed the costs of the companies lower after they formalize because they stop paying
high interest to assume other cheaper with banks and, in this way, they can make their businesses

"They do not need more explanation; they have not to be condemned to be small companies
forever. Peru is not condemned to have small companies, what happens?, if we can grow, we
have a great consumption market in the country, a huge consumption market in the world", he
The head of State made these statements during the opening ceremony of the Primary Health
Care Basic Unit (UBAPS) Huaycán - ESSALUD, which will allow the care of 40 000 people of
limited economic resources.


During the ceremony carried out at 7:30 hours (12:30 GMT), he highlighted that in the last two
years the formalization in the labor sector has allowed that one and a half million of new workers
have access to public health insurance, with which the number of members reaches the 7 and a
half millions.

He said this is only the beginning because with the MSEs Promotion Law, "we prepare to receive
many more millions of members in the coming months and years".

For this reason, the president urged the holder of ESSALUD, Fernando Barrios, to prepare the
terms of this institution, with better hospital and medical infrastructure and immediate care, in
favor of millions of new members.


Peru’s president stated that the next step will be the universal access to social insurance for all
Peruvians, with which the democracy will have arrived to all homes of the country.

"I want to establish the foundations of a big Peru, with big companies, with workers with rights
and this is what some people do not understand. Only this law was equal to the announces of July
28th, and people say there were not announces. How is it possible? If three days before I have
given this exceptional law that allows formalization”, he expressed.

He regretted that the importance of the above-mentioned norm has gotten lost in the "chaos" of
news and headlines of the last days, but he remarked that this is an effective measure to boost the
country's development.

"There are some people who do not see the benefits of this law even those who claimed like
theorists, analysts, and big politicians. Instead, they should be asking people: you have to be
formalized for the good of the country", he concluded.

Lima, August 5th, 2008

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