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Situation et prioritiés

Situation de la protection sociale

The Ecuadorian social protection system comprises the contributory, semi contributory and non-contributory schemes. The contributory scheme consists of three mandatory social insurance programmes that cover mainly formal workers, functioning under the Ecuadorian Social Security Institute - IESS. The two other social insurances cover public forces, such as people working in the army and the police. The semi contributory scheme includes the social insurance for rural farmers and artisanal fishers, as well as a modality of affiliation for non-paid domestic workers which allows women receiving conditional transfers from the government to transfer part of their benefit to make their contribution to the pension regime. Both programs are also administered also by the IESS and receive subsidies, including contributions from the government. Finally, the non-contributory scheme comprises conditional and unconditional cash transfers and social services, provided by the Ministry of Economic and Social Inclusion (MIES).

The Ecuadorian social protection system reflects the country’s economic structure, characterized by informal employment and under-employment. Considering the SDG indicator 1.3.1, by 2021 (last updated information) only 46.8% of the population is covered by at least one benefit of the national social protection system. By 2023, only 33.5% of people with employment had access to the contributory social security system, leaving behind more than 66% with none social protection whatsoever. Social unprotection is deepened for people commonly facing high risk of exclusion such as youth, women, older people, unemployed people, rural populations, migrants, indigenous people, etc.

COVID-19 and other crises

COVID-19 took a large toll on the national economy and had a devastating impact on people. The coverage of the contributory social protection system had a significant impact. By 2020 more than 200 thousand people exited the contributory social insurance. The number of people covered by the contributory social protection system has increased slightly by 0.5% from 2019 (pre-pandemic) to 2023.

In the last years social, political and insecurity crisis have characterized the country context. In 2023, the highest rate of people working in the informal sector since the last 16 years has been reached. Although the coverage of some vulnerable groups has increased thanks to the social protection measures taken to protect lives and livelihoods during the COVID-19 crisis, there are also other groups where the situation has worsened. Before the pandemic only 15.2% of children received a benefit from the social protection system. Post pandemic 29.2% of children is receiving a benefit from the system. The same situation can be observed for older people, where 6.6 out of 10 older people is receiving a benefit from the system, this means 5.5 percentual points higher than before the pandemic. The reality is different for women and for injured population. In the first case, 1.8% less of women receives now a maternity benefit compared to pre-pandemic. In the second case, 35.5% of injured population is receiving an employment injury benefit, compared with the 43.1% covered before the pandemic.

Priorités du gouvernement

The Government's Plan "For the new Ecuador 2024 - 2025", sets out four national pillars. Within the social and economic pillar the plan sets three main objectives and corresponding targets to be achieved by 2025 in each pillar, notably:

  • Reduce the income extreme poverty rate from 9.81% to 9.12%.
  • Increase the adequate employment rate from 34.41% to 39.09%.
  • Reduce the youth unemployment rate from 9.29% to 8.00%.

Social partner priorities comprise the increase of adequate employment policies in a complex context of insecurity and the expansion of terrorist groups and drug trafficking groups. The extension of coverage of the social protection system, mainly from the non-contributory scheme, is also a priority as compensation measures due to taxes reforms and possible elimination of fossil fuel subsidies.

Workers’ organizations have particular priorities such as the payment of accrued debts from the government to the Ecuadorian Social Security Institute to strengthen primarily the pension and health fund, together with the recovery of debts from the private sector. Also fighting against the privatization of the social security institute, as well as possible labor reforms have been set as a priority from workers organizations.

Employers’ organizations, have also priorities oriented to update the labour code that dates back to 1938 in order to reduce certain labour costs that impede employment creation and formalization, not necessarily associated to social security alone.

Resultats

Déficits de financement / Soutenir l'OIT

US$ 155 723

Support national entities to consolidate information and monitor SDG 1.3.1 and to include it in the statistical plan

Impact: 18,000,000 - N° of persons with better access to social protection (single registry, online application, one stop-service)
US$ 315 473

Support national capacities to develop a national care system with good and solid governance including local governments

Impact: 18,000,000 - N° of persons with better access to social protection (single registry, online application, one stop-service)
US$ 405 954

Support national entities to design and develop instruments to implement social protection floors in specific populations as for the SDG 1.3.1 (Children, maternity, unemployed, older people, etc.)

Impact: 9 360 000 - N° of persons effectively covered (related SDG 1.3.1)
US$ 269 025

Support the capacities of the country to identify and increase fiscal space for social protection through the design of financing instruments and advocacy processes with experts, congress and social partners.

Impact: 9 360 000 - N° of persons potentially covered by a strategy
US$ 526 236

Support the country to develop strategies promoting transit from informality to formalization, specially in rural areas with influence of indigenous people with reduced social protection coverage related to agricultural production.

Impact: 2 092 801 - N° of persons with better access to social protection (single registry, online application, one stop-service)
US$ 361 922

Support the capacities of the Social Security Institute to comprehensively improve coverage, adequacy and sustainability of the unemployment insurance

Impact: 389340 - N° of persons with better access to social protection (single registry, online application, one stop-service)

Multimedia

Experts de l'OIT

IMG
Pablo Casalí
Specialist, Social Security
IMG
Fabian Vallejo
National Project Officer