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					    LIS Variable        V2 Mandatory Employer Contributions
       Contents         Social contributions for employers
(national programmes)   NB: NOT COLLECTED IN SURVEY AND NOT INCLUDED IN LIS DATASET
                        Law 100 (1993): Creation of General Social Security System; Decree 1406 (1999); Decree 04
     Legislation
                        (2000); Law 797 (2003): Reform of Pension System.
      Coverage          All employers
                        General Pension System: Includes old-age, disability and survivors pensions.
                        General Social Security Health System: Compulsory Health Plan (POS), which includes basic
                        family coverage, maternal and child care, among others; and Complementary Plans.
 Benefits (financed
                        Professional risk insurance: Health benefits for work injuries or occupational diseases; and dis
   programmes)
                        pensions (temporary or permanent disability), and survivors benefits, as consecuence of
                        occupational injuries and diseases.
                        Family allowances and survivors pensions.
Basis of assessment     Payroll
                        General Pension System: 11.5%. The government partially finances the Solidarity Pension Fu
                        (see V13).
                        General Social Security Health System: 8% (12% for students and apprentices). The governm
                        finances the minimum pension and provides special subsidies to finance the Solidarity and Gu
                        Fund (see V13).
                        Professional risk insurance: Between 0.348% and 8.7% of payroll according to assessed degr
        Rate
                        risk (1% of employer's contribution finances the injury fund, which promotes the health and sa
                        workers).
                        Family allowances and survivors pension: 4%.
                        The minimum earnings for contribution purposes are equal to the legal monthly minimum wag
                        while the maximum earnings for contribution purposes are equal to 25 times the legal monthly
                        minimum wage.
     Collection         By witholding
ry Employer Contributions
butions for employers
 LLECTED IN SURVEY AND NOT INCLUDED IN LIS DATASET
93): Creation of General Social Security System; Decree 1406 (1999); Decree 047
797 (2003): Reform of Pension System.

sion System: Includes old-age, disability and survivors pensions.
 al Security Health System: Compulsory Health Plan (POS), which includes basic care,
 ge, maternal and child care, among others; and Complementary Plans.
 risk insurance: Health benefits for work injuries or occupational diseases; and disability
mporary or permanent disability), and survivors benefits, as consecuence of
 injuries and diseases.
ances and survivors pensions.

sion System: 11.5%. The government partially finances the Solidarity Pension Fund

 al Security Health System: 8% (12% for students and apprentices). The government
minimum pension and provides special subsidies to finance the Solidarity and Guaranty
13).
 risk insurance: Between 0.348% and 8.7% of payroll according to assessed degree of
mployer's contribution finances the injury fund, which promotes the health and safety of

ances and survivors pension: 4%.
m earnings for contribution purposes are equal to the legal monthly minimum wage,
ximum earnings for contribution purposes are equal to 25 times the legal monthly
ge.
    LIS Variable        V11 Income Taxes
                        Witholding tax
       Contents
                        Income tax
(national programmes)
                        NB: NOT COLLECTED IN SURVEY, BUT SIMULATED BY LIS
     Legislation        Taxation Code; Law 488 (1998).


                             Witholding tax



      Coverage

                              Income tax




                             Witholding tax
     Beneficiary
                              Income tax



                             Witholding tax



Basis of assessment


                              Income tax




                             Witholding tax




     Exemptions
Exemptions




              Income tax




             Witholding tax




Deductions




              Income tax
             Witholding tax
 Tax unit



              Income tax




             Witholding tax




  Rate




              Income tax




             Witholding tax
Collection



              Income tax
Income Taxes
olding tax
me tax
NOT COLLECTED IN SURVEY, BUT SIMULATED BY LIS
ation Code; Law 488 (1998).
                     Taxable earnings include those originated in the employment
                     relationship, or in the legal and [reglamentaria] relationships of natural or
                     juridical persons, [sociedades de hecho], organized communities and
                     [sucesiones ilíquidas].
                     Any taxable income obtained by taxpayers domiciled in the country,
                     without regard to the nationality of natural persons, the place of
                     constitution of juridical persons, nor the location of the source of
                     production (for tax purposes, individuals are considered residents if they
                     have remained in Colombia for more than 6 months of the fiscal year). In
                     the case of taxpayers not domiciled in the country, the tax is levied only
                     on taxable income from Colombian sources.
                     Central Government
                     Central Government
                     Labor earnings (those that exceed the sum of two monthly minimum
                     wages); dividends and interest share earnings; fees, service
                     commissions and leases; financial returns [rendimientos]; expropriation
                     of fixed assets of natural persons; other tax revenues; lotteries, raffles,
                     gambling and the like; equity [patrimonio]; and payments abroad.

                     The tax is levied on any income coming from capital, labour or the joint
                     application of both factors. Incomes are understood as earnings coming
                     from a steady source that is likely to generate income on a regular basis.
                     When the net income is less than 6% of liquid assets (assets less
                     liabilities) as of December 31 of the year prior to the taxable year, the
                     highest of these two values will be taken as the net taxable income.

                     Payments or contributions to the Nation and its administrative branches,
                     or to non-contributing entities; payments or contributions which by special
                     provisions are exempted [en cabeza del beneficiario]; and payments or
                     contributions for which retentions at source must be made, under special
                     disposicions, for other concepts. The transactions conducted through the
                     Stock Exchange of Energy?? [Bolsa de Energía] under no circumstances
                     are subject to withholding tax. In the case of labor income, payments for
                     [alimentación] of the worker or his/her family (for example, purchase of
                     food coupons or vouchers for the worker or his/her family, or meals in
                     restaurants) do not constitute income for the worker, provided the wage
                     of beneficiary worker does not exceed fifteen (15) monthly legal minimum
                     wages.
Income from exports of goods; income from services rendered by
Colombians abroad to natural or juridical persons not residing in
Colombia if the generated currencies are channelled through the foreign
exchange market; people and entities of public international law [que
tengan la calidad de] agents and agencies from diplomatic, consular and
non-profit international entities; currency from sales conducted in border
areas by traders established in them. Also exempt from the tax are
shares and dividends, provided such shares or dividends are taxed [en
cabeza] of the company that distributes them; utility from sale of shares
through the stock market, provided the shares sold do not exceed 10% of
outstanding shares of the company, in the latter case, up to 20%.
Under certain conditions, workers are entitled to deduct from the tax base
the interests or monetary correction of loans for house purchases, health
contributions (for the worker, his/her spouse and up to two children) and
education (primary, secondary and higher), provided the monthly amount
to be deducted does not exceed fifteen percent (15%) of the total taxable
income from the employment or legal relationship of the respective
month.
The above will only apply to employees who have labor incomes lower
than fifteen million six hundred thousand pesos ($ 15,600,000) in the
year immediately preceding. (Value base year 1992)
Payments for [alimentación] of the worker or his/her family (for example,
purchase of food coupons or vouchers for the worker or his/her family, or
meals in restaurants) are deductible to the employer, provided the wage
of beneficiary worker does not exceed fifteen (15) monthly legal minimum
wages.
Deductible from taxable income are those costs and expenses incurred
with regard to the income-generating activity, provided they are
necessary and proportional to such activity, and that they are accrued or
paid in the taxable year during which they are deducted. Among others,
amortization of investments; interests; royalties and fees for technical
assistance; salaries and social security contributions, insurance
premiums, losses caused by fortuitous events or [fuerza mayor], in the
portion not covered by insurance or compensation; bad debt provisions;
amortization of organisational expenses; contributions for personnel's
health care, school and cultural aid in reasonable amounts; expenses
incurred in training personnel in areas identified as priorities, and
expenses incurred to finance investment projects and development,
which may be [computados] as one and a half times their actual amount;
expenses and remunerations made to improve the conditions and work
environment through prevention, which may be [computados] as much as
20% of the net income of the taxpayer. Moreover, the sums paid by
subsidiaries or branches, subsidiaries or agencies in Colombia to their
headquarters or offices abroad for administration or management
expenses, as well as royalties and exploitation or acquisition of
intangibles; 80% of the amount paid for industry and commerce, and
property taxes during the taxable year; depreciation of fixed assets
calculated on the cost adjusted for inflation; new investment in
reforestation, in olive, cocoa, coconut, palm oil, rubber, and fruit
plantations, in irrigation and drainage works, deep wells and silos.
UVT: Tax Revenue Unit. This is the value measure used to adjust the
monetary values contained in laws and dispositions regarding taxes and
duties administered by the Directorate of National Taxes and Customs.
Its value is adjusted annually for changes in the consumer price index for
median incomes, in the period from October 1st of the year prior to the
taxable year and the same date in the year immediately preceding that
one. The value of the UVT in 2006 was $20.000 pesos.


The withholding tax applicable to taxable payments is estimated as
follows (in units UVT):
- From 0 to 95, tax: 0%.
- Above 95 up to 150, tax: 19% (taxable labour income expressed in
UVT, minus 95 UVT) * 19%
- Above 150 up to 360, tax: 28% (taxable labour income expressed in
UVT, minus 150 UVT) * 28% plus 10 UVT
- From 360 onwards, tax: 33% (taxable labour income expressed in UVT,
minus 360 UVT) * 33% plus 69 UVT
The withholding tax applicable to taxable payments is applied to 75% of
salaries greater than $2,266,667, excluding tax exempt contributions
(social security, pension, solidarity fund, transport and food subsidies).
Once such contributions and the 25% of the salary are substrated, the
income tax is estimated as follows:
-from 0 to 1700000, tax: 0%.
-from 1700001 to 2700000, tax: 20%
-from 2700000 to 6500000, tax: 29%
-from 6500001 to 8000000, tax: 35%
-from 8000000 onwards, tax: 1822000 + 35% of amounts over 8000000

Withholding tax officers must submit a monthly statement of the
witholdings to be conducted during the respective month. Every years,
these officers must issue a Certificate of Incomes and Witholdings to
employees for the taxable year immediately preceding. The tax withheld
will be credited to each taxpayer in the formal liquidation [liquidación
oficial] of income tax and complements for the corresponding taxable
year, based on the certificate issued by the retainer.
Taxpayers with taxable income must submit affidavit (sworn declaration?)
of the income received in the taxable year. No submission of affidavit for
those taxpayers who re.
      LIS Variable      V13 Mandatory Employee Contributions
       Contents         Social contributions for employees
(national programmes)   NB: NOT COLLECTED IN SURVEY, BUT SIMULATED BY LIS
                        Law 100 (1993): Creation of General Social Security System; Decree 1406 (1999); Decree 047 (20
     Legislation
                        Reform of Pension System.
                                                   Mandatory affiliates : All persons with employment contract, public serva
                                                   services directly in the form of service contracts, self-employed workers,
                                                   Ecopetrol after January 2003, and population groups who because of th
                                                   characteristics are chosen to be recipients of benefits through the Solida
                        General Pension System aims to complement the contributions of the General Pension System fo
                                                   employed workers in rural or urban areas lacking resources to pay out th
                                                   contributions. This fund is financed by employees, employers and gover
                                                   Voluntary affiliates : All natural persons residing in the country; Colombia
                                                   not have the quality of compulsory affiliates and are not explicitly exclud
                                                   virtue of an employment contract remain in the country and are not cove
                                                   in their country of origin.


      Coverage                                  All persons with employment contract, pensioners, self-employed worke
                                                and natural persons with earnings greater than twice the legal minimum
                        General Social Security
                                                Exceptions: Armed forces personnel and national police personnel have
                           Health System
                                                Through the Solidarity Fund, the purpose of government is to extend cov
                                                regardless of their wage level.


                                               All employees, excluding ocassional workers. Voluntary coverage for pe
                         Family Allowances and
                                               workers, and the unemployed.
                          Survivors Pensions
                                               Special systems for armed forces personnel and national police personn
                                                   Mandatory for all persons with employment contract, students as interns
                            Professional Risk      Voluntary coverage for the self-employed.
                               Insurance           Exceptions: Armed forces and national police personnel, and teachers h
                                                   coverage.
                        General Pension System: Includes old-age, disability and survivors pensions.
                        General Social Security Health System: Compulsory Health Plan (POS), which includes basic care
        Benefits        and child care, among others; and Complementary Plans.
(financed programmes)   Professional risk insurance: Health benefits for work injuries or occupational diseases; and disabili
                        permanent disability), and survivors benefits, as consecuence of occupational injuries and disease
                        Family allowances and survivors pensions.
 Basis of assessment    Gross earnings

                                               Insured persons : 4% of gross earnings, plus 1% of earnings for income
                                               minimum wage and between 0.2% and 1% of earnings for income great
                                               minimum wage to finance the solidarity fund, which subsidizes low earne
                                               opt for the individual account system also contribute up to a maximum o
                                               disability and survivor insurance and up to a maximum of 1.61% of earn
                        General Pension System
                                               Self-employed persons : 15% of declared earnings (15.5% of declared e
                                               Self-employed persons who opt for the individual account also contribute
                                               of declared earnings for disability and survivor insurance and up to a ma
                                               earnings for administrative fees.
                                               The minimum earnings for contribution purposes are equal to the legal m
                                               the legal monthly minimum wage for domestic workers. The maximum e
        Rate
                                               purposes are equal to 25 times the legal monthly minimum wage.
  Rate

                                     Insured persons: 4% of gross earnings.
                                     Self-employed persons: 12% of declared earnings.
             General Social Security
                                     The minimum earnings for contribution purposes are equal to the legal m
                Health System
                                     half the legal monthly minimum wage for domestic workers; there are no
                                     contribution purposes.
              Family Allowances and Voluntary contributors pay 2% of the legal monthly minimum wage. Self-
               Survivors Pensions   of declared earnings.
                Professional Risk       Self-employed persons contribute between 0.348% and 8.7% of payroll
                    Insurance           degree of risk.
Collection   By witholding. Contributions in the case of self-employed persons.
ontributions
 ees
 RVEY, BUT SIMULATED BY LIS
 eneral Social Security System; Decree 1406 (1999); Decree 047 (2000); Law 797 (2003):

 datory affiliates : All persons with employment contract, public servants, individuals who provide
 ices directly in the form of service contracts, self-employed workers, public servants entering
petrol after January 2003, and population groups who because of their socio-economic
 acteristics are chosen to be recipients of benefits through the Solidarity Pension Fund, which
s to complement the contributions of the General Pension System for employees or self-
 loyed workers in rural or urban areas lacking resources to pay out the totality of their
 ributions. This fund is financed by employees, employers and government.
 ntary affiliates : All natural persons residing in the country; Colombians residing abroad who do
have the quality of compulsory affiliates and are not explicitly excluded by law; foreigners who by
 e of an employment contract remain in the country and are not covered by any pension squeme
 eir country of origin.

 ersons with employment contract, pensioners, self-employed workers, students, apprentices;
 natural persons with earnings greater than twice the legal minimum monthly wage.
eptions: Armed forces personnel and national police personnel have a different health coverage
 ugh the Solidarity Fund, the purpose of government is to extend coverage to all Colombians,
 rdless of their wage level.


 mployees, excluding ocassional workers. Voluntary coverage for pensioners, self-employed
kers, and the unemployed.
cial systems for armed forces personnel and national police personnel.
 datory for all persons with employment contract, students as interns, and ocassional workers.
 ntary coverage for the self-employed.
eptions: Armed forces and national police personnel, and teachers have a different work injury
erage.
udes old-age, disability and survivors pensions.
  System: Compulsory Health Plan (POS), which includes basic care, family coverage, maternal
and Complementary Plans.
ealth benefits for work injuries or occupational diseases; and disability pensions (temporary or
 ivors benefits, as consecuence of occupational injuries and diseases.
 rs pensions.


red persons : 4% of gross earnings, plus 1% of earnings for income greater than four times the
mum wage and between 0.2% and 1% of earnings for income greater than 16 times the
mum wage to finance the solidarity fund, which subsidizes low earners. Insured persons who
 or the individual account system also contribute up to a maximum of 1.39% of earnings for
bility and survivor insurance and up to a maximum of 1.61% of earnings for administrative fees.)
 employed persons : 15% of declared earnings (15.5% of declared earnings from January 2006.)
 employed persons who opt for the individual account also contribute up to a maximum of 1.39%
eclared earnings for disability and survivor insurance and up to a maximum of 1.61% of declared
 ings for administrative fees.
 minimum earnings for contribution purposes are equal to the legal monthly minimum wage; half
egal monthly minimum wage for domestic workers. The maximum earnings for contribution
 oses are equal to 25 times the legal monthly minimum wage.
red persons: 4% of gross earnings.
 employed persons: 12% of declared earnings.
minimum earnings for contribution purposes are equal to the legal monthly minimum wage, and
the legal monthly minimum wage for domestic workers; there are no maximum earnings for
ribution purposes.
 ntary contributors pay 2% of the legal monthly minimum wage. Self-employed persons pay 2%
eclared earnings.
employed persons contribute between 0.348% and 8.7% of payroll according to assessed
ee of risk.
the case of self-employed persons.
     LIS Variable         V16 Sickness benefits
                          Sickness insurance, comprises:
                          -Sickness benefits
       Contents
                          -Medical assistance for the pensioner and his/her dependents
(national programmes)
                          This program is part of the Social Security System.
                          NB: THIS BENEFIT IS INCLUDED IN LIS VARIABLE V1.
                          Law 100 (1993): Creation of General Social Security System; Decree 1406 (1999); Decree 047
      Legislation
                          (2000).

                          All persons with employment contract, pensioners, self-employed workers, students, apprentices;
       Coverage           and natural persons with earnings greater than twice the legal minimum monthly wage.
                          Exceptions: Armed forces personnel and national police personnel have a different health coverage.

 Qualifying conditions    Four weeks of contributions immediately before the claim, except in emergency cases.
                          Sickness benefits :
                          Waiting period: 4 days (no waiting period in case of hospitalization).
                          Amount: 66.6% of the insured’s earnings in the month before the onset of incapacity.
                          Maximum duration: Up to 180 days.

       Benefits           Medical benefits : The insured and his/her dependents may choose either public or private health
                          care (state social enterprises and private health institutions, respectively). Benefits include medical,
                          surgical, hospital, pharmaceutical, orthopedic, and dental care and related services. Pre-natal and
                          post-natal medical service for affiliated women, maternity services for wife of the insured.
                          Preexisting conditions must be covered, although they may be subject to a waiting period; no
                          waiting period for pregnant women and babies up to age 1.
Accumulation with other
       income
      Adjustment

                             Financing principle     Employer's contributions (see V2) and employee's contributions (see
                                                     V13).
      Financing                  Taxation
                             Contributions from
                                  benefits
     LIS Variable         V17 Occupational injury and disease insurance
                          Occupational Risk Insurance, comprises:
                          -Health benefits in case of work injury or occupational disease.
       Contents
                          -Disability benefits (temporary and permanente - total or partial).
(national programmes)
                          -Survivors pension and funeral grant.
                          NB: THIS BENEFIT IS INCLUDED IN LIS VARIABLE V1.
                          Law 100 (1993): Creation of General Social Security System; Decree 1406 (1999); Decree 1295
      Legislation
                          (1994): Organization and Administration of General System for Professional Risk.
                          Mandatory for all persons with employment contract, students as interns, and ocassional workers.
                          Voluntary coverage for the self-employed.
       Coverage
                          Exceptions: Armed forces and national police personnel, and teachers have a different work injury
                          coverage.
 Qualifying conditions    There is no minimum qualifying period.
                                                     Benefits include medical, surgical, and hospital care; medicines;
                              Medical benefits
                                                     orthopedic appliances; rehabilitation; and transportation.
                             Temporary disability    Duration: Up to 180 days; may be extended to 360 days.
                                    benefits         Amount: 100% of earnings in the month before the onset of disability.
                                                     • For an assessed degree of disability between 50% and 66%, the
                                                     pension is equal to 60% of base earnings (average earnings in the last 6
                                                     months for work accidents or in the last 12 months for occupational
                                                     diseases).
                                                     • For an assessed degree of disability of more than 66%, the pension is
                            Permanent disability equal to 75% of base earnings.
                                    pension          Constant-attendance allowance: Equal to 15% of the pension.
       Benefits                                      • An assessed degree of disability between 5% and 49% is considered
                                                     partial disability, and the pension is from a minimum of one times base
                                                     earnings up to a maximum of 24 times base earnings.
                                                     Minimum benefit: Equal to the legal minimum wage.
                                                     Maximum benefit: Equal to 20 times the legal minimum wage.
                                                    The survivor pension is equal to 75% of the insured’s base earnings or
                                                    100% of the insured’s disability pension.
                                                    Eligible survivors: Widow/Widower who lived with the deceased for at
                             Survivors pension      least 5 years or who had children with the deceased; children younger
                                                    than age 18 (age 25 if a student, no limit if disabled); fully or partially
                                                    dependent parents; or a disabled brother or sister if economically
                                                    dependent of the deceased.
Accumulation with other
       income
      Adjustment          Pensions are adjusted annually for changes in the consumer price index.
                                                   Employer's contributions (see V2). The government contributes to the
                            Financing principle
                                                   work injury fund from general revenue.
      Financing                  Taxation
                             Contributions from
                                  benefits
     LIS Variable         V18S1 Disability pension
                          Disability pension
                          The general pension system includes old-age, disability and survivors pensions. It is
       Contents           comprised of two regimes: the traditional Social Security Institute (Régimen Solidario de
(national programmes)     Prima Media con Prestación Definida) and the private pension funds (individual account
                          solidarity regime).
                          NB: THESE BENEFITS ARE ACTUALLY REPORTED IN V19SR.
                          Law 100 (1993): Creation of General Social Security System; Decree 692 (1995): Manual for
      Legislation         Disability Assessment; Law 797 (2003): Reform of Pension System. Law 860 (2003): Reform of
                          Pension System.

                          Mandatory affiliates: All persons with employment contract, public servants, individuals who provide
                          services directly in the form of service contracts, self-employed workers, public servants entering
                          Ecopetrol after January 2003, and population groups who because of their socio-economic
                          characteristics are chosen to be recipients of benefits through the Solidarity Pension Fund.
       Coverage
                          Voluntary affiliates: All natural persons residing in the country; Colombians residing abroad who do
                          not have the quality of compulsory affiliates and are not explicitly excluded by law; foreigners who by
                          virtue of an employment contract remain in the country and are not covered by any pension squeme
                          in their country of origin.

                          Be assessed as disabled, that is, with at least 50% loss in nomal earning capacity, and have 50
                          weeks of contributions in the last 3 years inmmediately preceding the onset of disability; and
                          contributions for at least 20% of the period between age 20 and the onset of disability. If younger
 Qualifying conditions    than age 20, the insured must have 26 weeks of contributions in the year before the onset of
                          disability [o su declaratoria]. When the insured has contributions for at least 75% of the minimum
                          number of weeks required to qualify for old-age pension, it is only required the insured has 25 weeks
                          of contribution sin the last 3 years.

                          • For an assessed degree of disability of between 50% and 66%, the pension is equal to 45% of the
                          basic monthly wage (IBL), plus 1.5% of IBL for each 50-week period of contributions exceeding 500
                          weeks. The basic monthly wage is based on the insured’s average earnings in the last 10 years
                          before receiving the pension [cotizados continua o discontinuamente - IBL)].
                          • For an assessed degree of disability greater than 66%, the pension is equal to 54% of the basic
                          monthly wage (IBL), plus 2% of IBL for each 50-week period of contributions exceeding 800 weeks.
                          • The disability pension is not to exceed 75% of IBL.

       Benefits           If the insured does not meet the contributions required for a disability pension, a disability settlement
                          is provided. The settlement is equal to the average weekly basic wage multiplied by the number of
                          weeks of contributions, to which the weighted average of the percentages on which the member has
                          contributed is applied.

                          Specific to the individual account scheme: Benefits are financed with the insured's individual account
                          funds and the pension bonus, if entitled to it. Disability insurance tops up the accumulated capital in
                          the individual account if the balance is less than the required minimum to finance the permanent
                          disability pension.

Accumulation with other
       income
      Adjustment          Pensions are adjusted annually for changes in the consumer price index.

                             Financing principle     Employer's contributions (see V2) and employee's contributions (see
                                                     V13).
      Financing                  Taxation
                             Contributions from
                                  benefits
    LIS Variable        V19S1R Old-age pension n.e.c.
                        Old-age pension
                        The general pension system includes old-age, disability and survivors pensions. It is c
       Contents
                        two regimes: the traditional Social Security Institute (Régimen Solidario de Prima Medi
(national programmes)
                        Prestación Definida) and the private pension funds (individual account solidarity regim
                        NB: LIS variable V19SR includes old age pension, as well as disability & survivor' pens
     Legislation        Law 100 (1993): Creation of General Social Security System; Law 797 (2003): Reform of Pen
                        Mandatory affiliates: All persons with employment contract, public servants, individuals who p
                        directly in the form of service contracts, self-employed workers, public servants entering Ecop
                        January 2003, and population groups who because of their socio-economic characteristics are
                        recipients of benefits through the Solidarity Pension Fund.
      Coverage
                        Voluntary affiliates : All natural persons residing in the country; Colombians residing abroad wh
                        the quality of compulsory affiliates and are not explicitly excluded by law; foreigners who by vir
                        employment contract remain in the country and are not covered by any pension squeme in the
                        origin.
                          Régimen Solidario de
                            Prima Media con
                           Prestación Definida
                                 (public)




Qualifying conditions
                           Individual Account
                            Solidarity Regime
                                 (private)




                          Régimen Solidario de
                            Prima Media con
                           Prestación Definida
                                (público)




      Benefits
       Benefits




                             Individual Account
                              Solidarity Regime
                                   (private)




Accumulation with other
       income
      Adjustment          Pensions are adjusted annually for changes in the consumer price index.
                            Financing principle
                                 Taxation
      Financing
                             Contributions from
                                  benefits
-age pension n.e.c.
sion
 pension system includes old-age, disability and survivors pensions. It is comprised of
 : the traditional Social Security Institute (Régimen Solidario de Prima Media con
Definida) and the private pension funds (individual account solidarity regime).
 able V19SR includes old age pension, as well as disability & survivor' pension.
93): Creation of General Social Security System; Law 797 (2003): Reform of Pension System.
 filiates: All persons with employment contract, public servants, individuals who provide services
  form of service contracts, self-employed workers, public servants entering Ecopetrol after
3, and population groups who because of their socio-economic characteristics are chosen to be
benefits through the Solidarity Pension Fund.
 liates : All natural persons residing in the country; Colombians residing abroad who do not have
 compulsory affiliates and are not explicitly excluded by law; foreigners who by virtue of an
contract remain in the country and are not covered by any pension squeme in their country of



              Age 55 for women and age 60 for men, with 1000 weeks of contributions to the
              general pension system in any period of time.


              Payable if the accumulated capital in the individual account is sufficient to obtain a
              minimum pension (110% of the minimum wage) regardless of age at the time this
              happens (in the individual account scheme, participants can increase the amount of
              their pensions by making voluntary contributions to their compulsory contributions).
              The insured who at age 55 (women) or age 60 (men) have not generated the
              minimum pension established by law but have at least 1,000 weeks of
              contributions, will be entitled to have the minimum pension guaranty fund make up
              the difference. The insured who at those same ages do not have the required
              minimum number of weeks of contributions, and have not accumulated the
              necessary capital to finance a pension at least equal to the legal monthly minimum
              wage, shall be entitled to the return of capital accumulated in their individual
              account, including financial interests [rendimientos financieros] and the value of the
              pension bonus if one is applicable; or to continue paying contributions until meeting
              the qualifying conditions.


              The monthly old-age pension corresponding to the first 1.000 weeks of contribution
              is equal to 65% of the basic monthly wage. The basic monthly wage is based on
              the insured’s average earnings in the last 10 years of contributions, made
              continuously or intermittently. An extra 2% is added to the pension for each
              additional 50-week period of contributions beyond 1.000 weeks but not exceeding
              1.200 weeks, up to a maximum of 73% of the basic monthly wage. An extra 3% is
              added to the pension for each additional 50-week period of contributions beyond
              1.200 weeks but not exceeding 1.400 weeks, up to a maximum of 85% of the basic
              monthly wage. The total benefit will be neither greater than 85% of the basic
              monthly wage nor smaller than the legal monthly minimum wage.
            The pension is based on the value of the insured’s contributions, plus accrued
            interest, plus pensional bonus if entitled to it (pensional bonuses are contributions
            intended to enhance [la conformación del capital que se ahorró hasta el traslado de
            un régimen a otro], to finance the insured's old-age pension).
            At retirement, the beneficiary can choose among three modalities::
            • Programmed withdrawals: The insured maintains ownership of the funds in
            his/her individual account. An annuity in units of contant value is calculated every
            year; based on that annuity, monthly withdrawals to make against the balance of
            that account are estimated (each monthly withdrawal is equal to one twelfth of the
            annuity).
            • Immediate annuity: The insured buys an annuity from a private insurance
            company and receives a monthly payment until death, after which a survivors
            pension is paid to the insured's beneficiaries for the period of time they are entitled
            to. Such annuities and pensions must be uniform in terms of constant purchasing
            power, and can not be contracted for values lower than the minimum pension
            current at the time.
            • Programmed withdrawals with deferred annuity: The insured receives monthly
            payments until a set date, retaining in his/her individual account the funds to obtain
            a programmed withdrawal during the period between the date on which this
            modality option is exercised and the date on which the deferred annuity begins to
            be paid by the insurance company.

adjusted annually for changes in the consumer price index.
            Employer's contributions (see V2) and employee's contributions (see V13).
     LIS Variable         V19S4 Survivors pension
                          The general pension system includes old-age, disability and survivors pensions. It is
                          comprised of two regimes: the traditional Social Security Institute [Régimen Solidario de
                          Prima Media con Prestación Definida] and the private pension funds (individual account
       Contents           solidarity regime).
                          Survivors pension, includes:
(national programmes)
                          - Widow/Widower pension
                          - Orphan's pension
                          - Ascendant's pension
                          NB: THESE BENEFITS ARE REPORTED IN V19SR.
                          Law 100 (1993): Creation of General Social Security System; Law 797 (2003): Reform of Pension
      Legislation
                          System.
                          Mandatory affiliates: All persons with employment contract, public servants, individuals who provid
                          services directly in the form of service contracts, self-employed workers, public servants entering
                          Ecopetrol after January 2003, and population groups who because of their socio-economic
                          characteristics are chosen to be recipients of benefits through the Solidarity Pension Fund.
       Coverage
                          Voluntary affiliates: All natural persons residing in the country; Colombians residing abroad who do
                          not have the quality of compulsory affiliates and are not explicitly excluded by law; foreigners who
                          by virtue of an employment contract remain in the country and are not covered by any pension
                          squeme in their country of origin.

                          The insured must have 50 weeks of contributions in the last 3 years immediately preceding the tim
                          of death. The following requirements must also be met:
                          - For illness: Deceased was 20 years old or older, with contributions for least 25% of the period
                          between age 20 and the date of death.
                          - By accident: Deceased was older than age 20, with contributions for at least 20% of the period
                          between age 20 and the date of death.
                          Beneficiaries:
                          - In a permanent basis [en forma vitalicia]: Widow or widower who at the date of death is over 30
 Qualifying conditions
                          years old or who has had children with the deceased;
                          - In a temporary basis (maximum 20 years): Widow or widower who at the date of death is up to 30
                          years old and has no children with the deceased;
                          - Children under age 18, up to age 25 if they are students, and without age limit if they are disabled
                          - In the absence of eligible widow/widower and children: Parents of the deceased provided they
                          have total economic dependency on the deceased;
                          - In the absence of eligible widow/widower, parents and children: Disabled brothers or sisters of the
                          deceased provided they were economically dependents of the deceased.

                          The maximum survivor pension is equal to 100% of the deceased’s pension.
                          The monthly survivor pension is equal to 45% of the basic monthly wage, plus 2% for each 50-wee
                          period of contributions exceeding 500 weeks, up to a maximum of 75% of the basic monthly wage.
                          The minimum survivor pension is equal to the legal monthly minimum wage. Beneficiaries can
                          choose for a survivors' pension equivalent to 65% of the base income.
       Benefits
                          Specific to the individual account scheme: Benefits are financed with the insured's individual
                          account funds. Life insurance tops up the accumulated capital in the deceased’s individual accoun
                          if the balance is less than the required minimum to finance the survivor pension. If the deceased
                          does not meet the requirements to qualify for survivors benefits, the beneficiaries will be given the
                          full amount credited to the deceased's individual account, including accrued interests and the value
                          of the pension bonus if applicable.

Accumulation with other
       income
     Adjustment           Pensions are adjusted annually for changes in the consumer price index.
            Financing principle
Financing       Taxation
            Contributions from
                 benefits
S4 Survivors pension
 general pension system includes old-age, disability and survivors pensions. It is
 prised of two regimes: the traditional Social Security Institute [Régimen Solidario de
ma Media con Prestación Definida] and the private pension funds (individual account
darity regime).
 ivors pension, includes:
 dow/Widower pension
phan's pension
cendant's pension
 THESE BENEFITS ARE REPORTED IN V19SR.
 100 (1993): Creation of General Social Security System; Law 797 (2003): Reform of Pension
 em.
 datory affiliates: All persons with employment contract, public servants, individuals who provide
 ices directly in the form of service contracts, self-employed workers, public servants entering
petrol after January 2003, and population groups who because of their socio-economic
 acteristics are chosen to be recipients of benefits through the Solidarity Pension Fund.
 ntary affiliates: All natural persons residing in the country; Colombians residing abroad who do
have the quality of compulsory affiliates and are not explicitly excluded by law; foreigners who
  rtue of an employment contract remain in the country and are not covered by any pension
eme in their country of origin.

  insured must have 50 weeks of contributions in the last 3 years immediately preceding the time
eath. The following requirements must also be met:
 r illness: Deceased was 20 years old or older, with contributions for least 25% of the period
ween age 20 and the date of death.
  accident: Deceased was older than age 20, with contributions for at least 20% of the period
ween age 20 and the date of death.
 eficiaries:
a permanent basis [en forma vitalicia]: Widow or widower who at the date of death is over 30
 s old or who has had children with the deceased;
a temporary basis (maximum 20 years): Widow or widower who at the date of death is up to 30
 s old and has no children with the deceased;
 ildren under age 18, up to age 25 if they are students, and without age limit if they are disabled;
  he absence of eligible widow/widower and children: Parents of the deceased provided they
e total economic dependency on the deceased;
  he absence of eligible widow/widower, parents and children: Disabled brothers or sisters of the
eased provided they were economically dependents of the deceased.

 maximum survivor pension is equal to 100% of the deceased’s pension.
 monthly survivor pension is equal to 45% of the basic monthly wage, plus 2% for each 50-week
od of contributions exceeding 500 weeks, up to a maximum of 75% of the basic monthly wage.
 minimum survivor pension is equal to the legal monthly minimum wage. Beneficiaries can
ose for a survivors' pension equivalent to 65% of the base income.

cific to the individual account scheme: Benefits are financed with the insured's individual
ount funds. Life insurance tops up the accumulated capital in the deceased’s individual account
e balance is less than the required minimum to finance the survivor pension. If the deceased
s not meet the requirements to qualify for survivors benefits, the beneficiaries will be given the
amount credited to the deceased's individual account, including accrued interests and the value
 e pension bonus if applicable.



sions are adjusted annually for changes in the consumer price index.
Employer's contributions (see V2) and employee's contributions (see
V13).
     LIS Variable         V21SR Family allowances
       Contents           Family allowances
(national programmes)     NB: INFO ON THIS BENEFIT IS NOT INCLUDED IN THE SURVEY.
      Legislation         Law 21 (1981); Decree 341 (1988); Law 789 (2002).
                          All employees, excluding ocassional workers. Voluntary coverage for pensioners, self-employ
       Coverage           workers, and the unemployed.
                          Special systems for armed forces personnel and national police personnel.
                          Family allowances: The child must be younger than age 18 (up to age 23 if a student, no age
                          disabled). The parent must be older than age 60 or assessed as 60% disabled; must have
 Qualifying conditions    completed 60 days of continuous employment with the same employer of which not less than
                          hours were credited during the last 25 working days.
                          Income test: Monthly income must not exceed four times the legal monthly minimum wage.
                          Family allowances : Benefit amounts vary among funds and may be paid in cash or in kind. A
                          assessed as at least 60% disabled receives a double allowance.
       Benefits           Surviving spouse allowance : Twelve months’ payment to a widow/widower or the guardian of
                          dependent children. If the dependent dies, the family receives a lump sum equal to 12 monthl
                          payments.
Accumulation with other
       income
      Adjustment
                             Financing principle
      Financing                  Taxation
                             Contributions from
                                  benefits
 ly allowances
ances
N THIS BENEFIT IS NOT INCLUDED IN THE SURVEY.
1); Decree 341 (1988); Law 789 (2002).
s, excluding ocassional workers. Voluntary coverage for pensioners, self-employed
 the unemployed.
ms for armed forces personnel and national police personnel.
ances: The child must be younger than age 18 (up to age 23 if a student, no age limit if
 e parent must be older than age 60 or assessed as 60% disabled; must have
0 days of continuous employment with the same employer of which not less than 96
redited during the last 25 working days.
 Monthly income must not exceed four times the legal monthly minimum wage.
ances : Benefit amounts vary among funds and may be paid in cash or in kind. A child
 at least 60% disabled receives a double allowance.
ouse allowance : Twelve months’ payment to a widow/widower or the guardian of
hildren. If the dependent dies, the family receives a lump sum equal to 12 monthly




              Employer's contributions (see V2) and employee's contributions (see
              V13).
     LIS Variable         V21SR Unemployment compensation benefits n.e.c.
       Contents           Compensation for unjustified dismissal
(national programmes)     NB: INFO ON THIS BENEFIT IS NOT INCLUDED IN THE SURVEY.

      Legislation         Labor Code; Law 50 (1990); Law 100 (1993); Law 789 (2002): Labor and Social Protection Law.

                          All private-sector employees.
       Coverage
                          Voluntary for public-sector employees and self-employed persons.
 Qualifying conditions    The insured must be unemployed or retired [en forma injustificada].
                          The benefit is equal to 1 monthly wage for each year of employment; a reduced benefit is paid for
       Benefits
                          less than a year of employment.
Accumulation with other
       income
      Adjustment
                             Financing principle    Completely financed by employer.
                                  Taxation
      Financing
                             Contributions from
                                  benefits
     LIS Variable         V22S1 Wage replacement
                          Maternity benefits
       Contents
                          This program is part of the Social Security System.
(national programmes)
                          NB: INFO ON THIS BENEFIT IS NOT INCLUDED IN THE SURVEY.
                          Law 100 (1993): Creation of General Social Security System; Decree 1406 (1999); Decree 04
      Legislation
                          (2000).
                          Workers who are biological mothers and have contributed to the General Social Security Heal
                          System; the adoptive parents of children younger than age 7 are entitled to a paid leave of 12
       Coverage
                          weeks that [se les reconocerá] from the date of commencement [de la misma], or the delivery
                          child.

                          Worker has contributed to the General Social Security Health System uninterruptedly at least
                          the gestation period (certified by the doctor who attended the delivery); at the time of expectin
 Qualifying conditions    viable child, the worker has made timely contributions to the General Social Security Health S
                          at least four of the last six months preceding the date on which the worker becomes a mother
                          viable child, timely contributions have been made to the General Social Security Health System

                          Maternity leave or adoption leave provides a cash benefit equal to 100% of the insured’s earn
                          for the number of days certified by the physician. If the salary is variable, the pension is based
       Benefits           the average basic monthly wage during the last year.
                          The biological mother can relinquish 1 week from the 12 weeks she is entitled to in favor of he
                          husband or partner, in which case the benefits for the 12 weeks will be paid to the mother.
Accumulation with other
       income
      Adjustment
                             Financing principle
      Financing                  Taxation
                             Contributions from
                                  benefits
 replacement
nefits
m is part of the Social Security System.
N THIS BENEFIT IS NOT INCLUDED IN THE SURVEY.
93): Creation of General Social Security System; Decree 1406 (1999); Decree 047


  are biological mothers and have contributed to the General Social Security Health
adoptive parents of children younger than age 7 are entitled to a paid leave of 12
 e les reconocerá] from the date of commencement [de la misma], or the delivery of the


 ontributed to the General Social Security Health System uninterruptedly at least during
 period (certified by the doctor who attended the delivery); at the time of expecting a
he worker has made timely contributions to the General Social Security Health System;
of the last six months preceding the date on which the worker becomes a mother of
 mely contributions have been made to the General Social Security Health System.

ve or adoption leave provides a cash benefit equal to 100% of the insured’s earnings,
er of days certified by the physician. If the salary is variable, the pension is based on
basic monthly wage during the last year.
 l mother can relinquish 1 week from the 12 weeks she is entitled to in favor of her
 artner, in which case the benefits for the 12 weeks will be paid to the mother.




              Employer's contributions (see V2) and employee's contributions (see
              V13).
Main sources:

Ministry of Social Protection

Social Security Institute

National Health Superintendent

Superintendent for Family Subsidies

Directorate of National Taxes and Customs

Colombian Taxation Code

Social Security Programs Throughout the World
(Sistemas de seguridad social a lo largo del mundo)

NATLEX, database of national labor, social security and related human rights legislation
(NATLEX, base de datos sobre legislación en materia de trabajo, seguridad social y
derechos humanos)
Websites

http://www.minproteccionsocial.gov.co/

http://www.iss.gov.co/

http://www.supersalud.gov.co/

http://www.ssf.gov.co/

http://www.dian.gov.co/

http://www.estatutotributario.com

(http://www.ssa.gov/policy/docs/progdesc/ssptw/)


(http://www.ilo.org/dyn/natlex/natlex_browse.home?p_lang=en)

				
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