It is estimated that there are about 169 million international migrant workers across the globe. Although migrant workers are a heterogeneous group, they often occupy low-skilled jobs in sectors and occupations characterized by high informality and low levels of compliance. Migrant workers may face more obstacles in accessing social protection than nationals – such as legal exclusion based on nationality or residency status. This makes them especially vulnerable to socio-economic shocks, which may result in long-lasting, adverse impacts on their livelihoods. At the same time, the extension of social protection to them is essential for ensuring income security and access to health care, which can also facilitate their transition from the informal to the formal economy.

This module highlights the specific challenges of extending social security to migrant workers in the informal economy. It also presents an analysis of some policy options, based on international experience and guided by ILO social security standards.

Key questions

• What are the specific challenges for the extension of social security coverage to migrant workers?
• How can migrant workers be included under social security legislation and in national social protection systems?
• What else needs to be considered when extending social security coverage to migrant workers?

Main barriers

• Migration status: Migrant workers’ residence status, duration of stay, type of visa can affect their access to certain social protection benefits. In addition, when migrants enter or stay in the country of destination in an irregular situation, this may prevent them from accessing formal employment, social insurance and tax-financed benefits.
• Legal exclusion:  National labour and social security laws may exclude migrant workers specifically. In addition, they may work in certain sectors, occupations and categories of employment that are excluded by national labour and social security laws – such as domestic and construction work, casual or seasonal employment – or with high rates of non-compliance. In addition, not all countries recognize the principle of equality of treatment between nationals and non-nationals with respect to social security.
• Administrative barriers: Complex and burdensome administrative procedures/services can be a deterrent to social security registration for both employers and workers. When migrant workers are located in remote areas, the low density of administrative structures and services (e.g., limited transport, long distances to offices) may also restrict their access. Lack of documentation (ID documents, passports, birth certificates, work contract, salary slips, bank statements etc.) is also an obstacle for migrant workers to access benefits in general, whether they have a regular status or not.
• Financial barriers: Fluctuating, unstable or low earnings are very common amongst migrant workers in the informal economy. When financing arrangements are not adapted to their circumstances, these migrants may face difficulties in paying (regular) contributions.
• Lack of trust and adequate arrangements: Migrant workers and their employers may be reluctant to pay social security contributions if they cannot expect benefits in return, whether this is real or perceived, which can push migrants to work in the informal economy. This may be because of inadequate benefit levels, poor or limited trust in the governance of social security administrations/institutions, or a lack of social security agreements that allow for the portability of benefits.
• Lack of enforcement and low compliance:  Labour inspection controls are especially difficult given the migrant worker’s nature of employment – which can be hidden or undeclared by employers. Furthermore, these controls may lead to high costs and complex procedures.
• Lack of information and organization: Migrant workers lack information and awareness on social protection rights, benefits and procedures in their own language. In addition, their lack of representation and organization reduces the opportunity to participate in decision making processes affecting their access to social protection.
• Additional challenges include the lack of political will in extending coverage, political sensitivity in extending it to non-nationals, and discrimination on the grounds of nationality, migration status, but also sex, gender, race, ethnicity, etc.

Possible solutions

Extending legal coverage

• Including migrant workers in the general social protection system by ensuring their access to social protection benefits based on equality of treatment between nationals and non-nationals.
• Extending contributory social protection schemes to previously excluded/uncovered workers in sectors and occupations with a high concentration of migrant workers (such as agricultural work and domestic work); and/or eliminating/reducing legal thresholds on minimum working time, duration of employment or earnings.
• Concluding social security agreements to ensure the portability of social security benefits across countries.
• Allowing nationals working abroad to access or retain membership in a general social protection scheme in the country of origin under certain circumstances.

Facilitating access to social protection by lifting administrative barriers

• Simplifying and streamlining registration and other administrative procedures, such as through mobile or online registration, and by reducing the need for supporting documents.
• Developing integrated service delivery mechanisms, such as one-stop-shops, to improve access to social protection, especially in remote areas.
• Removing geographical barriers by multiplying physical access points or by providing mobile social security offices.

Facilitating contribution collection and payment mechanisms

• Adapting social security schemes to ensure that workers with shorter or interrupted contribution histories can meet the qualifying conditions and minimum requirements; allowing retroactive payments. 
• Facilitating the payment of social security contributions by making the timing of contribution payments more flexible or by allowing contribution to priority branches of social security; and by introducing differentiated contributory provisions or unified social insurance contributions.
• Subsidizing social insurance contributions for workers with limited earnings to encourage social insurance coverage and the formalization of employment, which could also benefit migrant workers.

Enhancing compliance and facilitating inspections

• Ensuring labour and social security inspectors have adequate resources and are well-trained; and adapting labour inspection mechanisms to the situation of different migrant workers and their workplaces (for instance, migrant domestic workers).
• Facilitating migrant workers’ access to grievance and complaint mechanisms in appropriate languages.
• Raising awareness and promoting compliance through preventive measures and combining sanctions with information and awareness campaigns.

Raising awareness and sharing information

• Raising awareness of the importance of social protection among migrant workers and their employers and informing them about the benefits available and the relevant procedures.
• Facilitating access to information in appropriate languages; and providing migrant workers with access to language courses.
• Strengthening representation and social dialogue to ensure that policies meet the needs of migrant workers.

Strengthening incentives for formalization through linkages with other policy areas

• Ensuring that formalization policies and strategies include migrant workers on the basis of the principle of equality of treatment between nationals and non-nationals with respect to social protection.
• Promoting the regularization of migrant workers as a first step towards providing access to the formal labour market for these workers.
• Concluding bilateral/multilateral social security agreements and including social security provisions in BLAs to incentivize workers to migrate through regular channels and work in the formal economy.

Key messages

• To extend legal coverage to migrant workers in the informal economy, States should consider facilitating access to national social security schemes and ensure the portability of social protection rights and benefits on the basis of equality of treatment.
• States should also consider measures to extend social security to currently uncovered workers (regardless of nationality), especially in sectors and occupations with a high proportion of migrant workers (such as domestic workers, agricultural workers, construction workers) through a combination of social insurance contributions, if necessary complemented by tax-financed benefits.
• The conclusion and enforcement of bilateral/multilateral social security agreements and the inclusion of social security provisions in BLAs can facilitate the formalization of migrant workers and their access to social protection. Indeed, the mere existence of these agreements can be an incentive to migrate through regular channels and work in the formal economy in order to benefit from the social protection that they provide.
• Governments should take complementary measures to address the practical obstacles faced by migrants in the informal economy. These measures include adapting administrative procedures and the calculation of contributions, adapting labour inspection mechanisms, and raising awareness among migrant workers about existing schemes and how to access them in appropriate languages.