Covid assistance worldwide - Part I

“We must recognize that effective and comprehensive social protection is not just essential for social justice and decent work but for creating a sustainable and resilient future too” stated Guy Rider, Director-General of the International Labour Organization (ILO) . 

According to the ILO convention on social security minimum standards, social protection includes access to health care and income security, particularly in relation to old age, unemployment, sickness, disability, work injury, maternity or loss of a main income earner, as well as for families with children. 

The COVID-19 crisis has exposed and exacerbated the social protection gaps between countries, indeed the pandemic represents a crucial challenge since it has created both a major public help challenge while having serious economic and social impacts. Thus governments have to contain the health pandemic while at the same time responding to its economic and social impacts. As a matter of fact, countries that have effective social protection systems in place that provide universal coverage were better prepared to respond to the COVID-19 crisis and its socioeconomic impacts. Indeed, they have the institutional capacities to adapt these systems relatively quickly in response to the crisis. However, countries that lack a robust social protection system needed to develop policies and interventions in an ad hoc way, building institutional capacity under very difficult circumstances, which was likely to lead to a limited and delayed response. In such cases, international support was critical to complement countries’ efforts to adopt emergency measures. Despite these difficulties, broad national examples provided innovative social policies, overcoming traditional barriers to universal social protection. Indeed, many states reached those who were previously uncovered by any social protection schemes, in particular informal workers. Thus, this article aims to have an overview of COVID-19 related assistance implementation worldwide as they targeted traditionally excluded beneficiaries, namely informal and self-employed workers, through Unemployment insurance schemes (I) and direct atypical workers protection (II). 

I: Unemployment insurance schemes

Labour market situation in all countries has deteriorated, due to the pandemic situation. The International Labour Organization (ILO) estimates that the global employment-to-population ratio decreased from 57.6 in 2019 to 54.9 per cent in 2020, though this decline masks considerable differences between groups of workers and between sectors (global employment declined more on women, young and medium/low skilled workers) Thus, using the unemployment insurance system to support those who became unemployed was crucial and used by many countries (incl. Belgium, Austria and China). Unemployment insurance schemes are implemented in both emerging and advanced economies to protect employed individuals against the risk of job loss. The financing of the benefits and administration costs of classic unemployment insurance schemes can be borne collectively by workers, employers, and governments through work-related contributions or taxes. However few developing countries can draw on unemployment protection schemes. Indeed, the crisis has made patently evident the lack of unemployment benefits: according to the International Labour Organization before the current crisis, only 20 percent of unemployed persons worldwide were covered by unemployment benefits, leaving 152 million unemployed workers without coverage. Also, the dualization of the labour market between formal and informal workers has diminished unemployment benefit schemes’ protective role. Indeed, unemployment benefits schemes are contributory and they require workers to work in a ‘recording way’ to be, then, entitled to unemployment benefits : consequently informal workers are mostly excluded. 

As a matter of fact, unemployment benefits schemes rely on the formal sector since it requires formal recorded work and social contributions. However notable exceptions exist, like in Indonesia which organized employment services and income support to unemployed informal workers during pandemic. This new scheme called ‘Pre-employment Card Programme’ was jointly implemented by the Coordinating Ministry of Economic Affairs and the Ministry of Labour with a 20 trillion indonesian rupiahs budget (1.2 billion american dollars). It has been especially tailored to people affected most by the crisis, including informal workers and small business owners. This is a crucial target since according to the Indonesian Statistics Centre Agency there are currently 70 million informal workers, accounting for 55.72 percent of the total workers in Indonesia. Most informal workers are not guaranteed the same rights as permanent workers, such as classic unemployment benefits. There were 5.6 million program participants across the country in 2020 selected out of 36.6 million online registrants. Applicants had to sign up online, qualified participants were chosen among formal workers recently laid-off or sent home without or with reduced wage payment due to the COVID-19 pandemic and informal workers affected by the crisis, such as own account workers. They received non-cash credit that can be used to buy an online course of their choice on several digital platforms, which the government has partnered with. A variety of courses were available ranging from learning a new language, graphic design, computer science to how to become a coffee barista, hairdresser and hotel receptionist. After completing a course, the participant received a monthly payment of 600 000 indonesian rupiahs (42 american dollars) for four months in their bank account, which can be used to buy basic necessities. According to the director of the program it has led 72 000 underbanked people to board e-wallet platforms and create a bank account for the first time, contributing to financial inclusion in the country. This type of unemployment scheme is a rare example of a program targeting the informal economy, however it is highly reliant on digital platforms and the Internet. This poses a challenge as the technology needed to access training remains out of reach by many Indonesians due to the digital divide between those who have access to the Internet and computer and those who do not, mostly individuals with low socioeconomic status, low educational attainment and elders. Maria Sarah points out that informal workers tend to fall under these demographics, so they are less likely to have access to the Internet and consequently, the program. Moreover, eligibility criterias checking was problematic, according to Dominique Virgil people not matching them were able to register on the platform. The program was also criticized because the Indonesian government used the budget to pay the digital platforms as service providers, who have made significant profits from this program without undergoing a tender or auction, as obliged by legislation.

Thus, unemployment benefit schemes can be designed to reach informal workers or self-employed workers, in addition to classic employees. Furthermore, some specific programs can target only these atypical workers (II). 

II: Informal and self-employed workers’ protection

The crisis has especially affected those not covered by social insurance or social assistance. Indeed, according to the ILO, 1.6 billion informal economy workers (76 per cent of informal employment worldwide) are significantly impacted. The crisis has also exposed the vulnerability of self-employed workers in both the formal and informal economy. This highlighted a major need to rethink and strengthen social protection mechanisms, providing more complete social safety nets that are not tied to formal employment. Thus, one of the challenges for policymakers was how to provide support to informal and not covered self-employed workers, using existing and new appropriate social protection schemes, by correctly identifying and enrolling workers. Relevant identification is crucial and requires innovative means since many informal or self-employed workers have traditionally been outside the radar of the state, for instance they often don’t even have a bank account. During COVID-19 outbreak, many countries (incl. Lithuania, Latvia, Vietnam and South Korea) with high rates of informality organized such support, taking in account their informal sectors’ specificites. This shows that reaching atypical workers can be overcome. Also, countries' policies have associated their existing official institutions (social security, employment services, etc.) and innovative means (partnership with telephone company, electoral system, individual investigations etc.) to create new effective schemes making possible to target the concerned populations and limiting abuses. Even if imperfections still exist, such schemes must be further developed beyond the crisis to provide a social universal cover. 

Informal workers: With a budget of 296 billion costa rican colones (462 millions american dollars) around 0.8% of 2020 GDP) coming from several national public institutions and funds (Mixed Institute of Social Aid,  Emergency Fund of the National Emergency Commission,  Fund of the National Employment Program of the Ministry of Labor and Social Security and extraordinary government budget), Costa Rica has introduced a new emergency benefit called ‘Bono Proteger’. It provided for three months a monthly benefit of 125 000 costa rican colones (220 american dollars) to employees and independent workers, both formal and informal, who have lost their jobs and livelihoods and 62 500 costa rican colones (110 US dollars) to those who are working reduced hours. The money was provided through a phone application that was used by 90 percent of eligible workers , which demonstrates a well designed receiving process. For people who did not have connectivity, individual support of technological facilitators selected by the Mixed Institute for Social Aid was implemented. Documents required for informal workers’ application were an identity document, an affidavit (written oath stating that what an individual saying is the truth) about cash losses and a bank account number. In case of lack of a bank account, applicants could request it for free during the process, using the same form. Due to the vital needs implication, Costa Rica did not delay the cash transfer but organized a later eligibility check. Indeed, by submitting the form, applicants accepted that the information they gave could be investigated later. This acceptance was crucial since after the support delivery, a process for the return of benefits occurred after verification of non-eligibility and non-compliance with the criteria. 

Namibia launched the Emergency Income Grant (EIG), a 38,68 millions american dollars program coming from a global 611 millions american dollars COVID-19 Stimulus Package (including 449,9 millions americans dollars total budgetary allocation and 161,7 millions americans dollars Government guarantee-backed loans). This was a one-off benefit of 750 namibian dollars (41 american dollars), which targeted people between the ages of 18 to 59, who lost jobs in the informal sector as a result of the COVID-19 outbreak. It also covered those who were unemployed in the same age category. In order to target informal workers, EIG took advantage of the existing social protection system : the approach excluded those who were registered with formal social security and social assistance systems. Indeed, people already receiving social grants on behalf of others, and those who had lost jobs or experienced reduced wages in the formal sector were not covered by EIG. To give EIG access beyond the formal banking system, mobile and e-wallet technology were used to register. Government made a partnership with Mobile Telecommunications Limited (MTC), a national mobile provider. Applicants nominated themselves and applied via sms to MTC call centre for free, providing their ID number, then a trigger SMS permitted to launch the registration process through applicants’ cell phones. MTC submitted the information collected to MobiPay (a service provider in Namibia for mobile wallets and cardless transactions) to validate. Final eligibility check was made by Deloitte Namibia which audited the information and sent it to the banks. This allowed for rapid verification and issuing of the grant within days. Last step was a token delivery by namibian commercial banks for an e-money product. 769 000 Namibians benefitted from the EIG. However the NGO WIEGO points out that applicants who were already receiving social grants on behalf of vulnerable children and other relatives did not qualify, excluding disproportionately affected women as the primary caregivers and cashearner in many households. 

In Togo the Government has quickly put in place ‘Novissi’ program, financed by the National Solidarity and Economic Recovery Fund and matched by the Togolese State and partners involved in the development of the country, such as the French Development Agency and private donations. Novissi provided a three months cash transfer that targeted workers in the informal economy, paying 12 500 CFA francs (21 american dollars) per month to women and 10 000 CFA francs (17 american dollars) per month to men, reaching more than half a million workers within one month. According to the program’s direction, this gender-sensitive approach aimed to empower women, who were suffering a high burden of care due to the pandemic. The registration and the payment of benefits to the electronic wallet of beneficiaries was done through smartphone. Applicants had to prove that they were Togolese and of legal age by means of their voter card, to explain their profession and to indicate their place of residence. In total, 11.3 billion CFA francs (19.3 million dollars) were distributed via Noviss’ platform during the three months of the health emergency. Togo’s government  is now considering a regroupment of all social protection programs under a single agency and to make Novissi its exclusive platform.

Self-employed workers: In Spain, the ‘insurance against cessation of business activity’ is conceived as an unemployment benefit that protects self-employed workers facing an urgent situation due to the involuntary stoppage of their economic activity. This is a voluntary scheme, being managed by private mutual insurance funds. Normally, the following conditions must be met to be eligible :  to be affiliated to the RETA scheme (a special regime for self-Employed workers), to have contributed to the insurance at least 12 months in the last 48 months, to be in legal situation of ‘cessation of business activity’, to sign a ‘commitment of activity’ establishing that the person must actively seek employment, accept a suitable job and participate in specific motivational, information, training, reconversion or professional insertion activities offered by the Public Employment Service in order to increase their employability. From the pandemic till today, the eligibility conditions have been relaxed, the required contribution period has been abolished, and the application procedure streamlined. Every self-employed worker, registered in the corresponding regime (involving only formal self-employed), can apply to insurance against cessation of business activity, if they prove incomes’ losses. The work or business have to be directly suspended or have got a 70% loss in income over the last month (compared with average monthly over previous semester). This benefit can be applied online via Spain’s State Public Employment Service. 

In Argentina, despite a broad social protection system, self-employed workers are not necessarily equally or adequately protected in contexts of economic and labor market crises. Self-employed workers account for 22% of total employment and have access to only some of the social protection system if they are registered, which many are not. Also, they are not covered by Argentina’s unemployment benefits scheme. This makes the formal social schemes not well equipped to protect self-employed workers in a crisis’ context. Consequently, social assistance and workfare programs have been more common policy instruments over the last decades in Argentina. Indeed, the first massive cash transfer program implemented in Argentina (the Unemployed Heads of Households Plan), a hybrid between a conditional cash transfer and a workfare program, emerged in the 2001 crisis context. In the same way the Emergency Family Income (EFI), a non-contributory cash benefit of 10 000 Argentine pesos (150 US dollars, about 59% of the minimum wage) was implemented in the context of the pandemic. It was paid by the National Social Security Administration (ANSES) as an exceptional one-off transfer and subsequently repeated twice. The first round of EFI was paid between April and May 2020, the second between June and July 2020 and the third between August and September 2020, totalling seven months. The eligible population included low income self-employed (both formal and informal) who at the time of application were receiving no income from employment, social security, social assistance or employment programs.  Eligible persons had to be Argentine citizens or legal residents (for at least 2 years) aged 18 to 65. Furthermore, the regulation also established that before the allocation of benefits, ANSES would make socioeconomic and asset valuations to corroborate the situation of need. The EFI had a very broad reach and a focus on the most vulnerable population (not only self-employed were the target but domestic and informal workers in general as well). In the first round, 13.4 million people applied for the benefit, and 8.6 million received it. This indicates a coverage rate of about 19.5% of the total population of the country, and 31.6% of the population in the eligible age range (18–65). In total 3 509 million american dollars were spent on this measure. 

Finally, this crisis has shown that it is possible to reach informal and uncovered self-employed workers by creating new social programs to reach them or by relaxing previous eligibility criteria. These responses must be used to design tomorow social policies. 

Conclusion and policies implication 

On 1st, September 2021, the International Labor Organization delivered the World Social Protection Report (2020-2022). According to the text, the pandemic response generated the largest mobilization of social protection measures ever seen, to protect people’s health, jobs and incomes. 

However, more than 4 billions people worldwide still don't have social protection access. Thus, the International Labour Organization stated that the pandemic social responses were insufficient, which has increased gaps between developed countries and developing countries. 

Indeed, lessons learned from the crisis demonstrate the key role of social protection in stabilizing household incomes and aggregate demand and contributing to recovery. On the other hand, the lack of social protection measures in the context of health epidemics aggravates poverty, unemployment and informality, leading to a vicious circle of even greater fragility.

Thus the COVID-19 crisis must be seen as a ‘wake-up call’ for countries to prioritize investments in their social protection systems in order to help stop or mitigate the crisis, and to strengthen their social protection systems to better address future challenges. Policymakers must assimilate these considerations while building and developing their social protection schemes to achieve universal social protection, which is a condition to the inalienable dignity right for all. 

An article was prepared in the framework of the Project – "Improving the rights of employees in the formal and informal sectors". The Project is funded by the Open Society Georgia Foundation (OSGF)

The opinions expressed in the article are the sole responsibility of the author and may not express the position of the Open Society Georgia Foundation (OSGF)

•  ILO, Social Security (Minimum Standards) Convention, 1952 (No. 102) 
• Ministry of Finance, Republic of Namibia, 2020
• Costa Rica, Ministry of Labour and Social Security, Plan Proteger, 2020 (In Spanish)
• Costa Rica Comunicado de presta CP-024-2020 MTSS
• Ministry of Finance, Republic of Namibia, 2020
• Namibian government, Novissi program 
• Argentina's Government, Decree 310/2020
• Argentina's Government Resolution SSS N° 8/2020

• (A.) Asenjo and (C.) Pignatti, Unemployment insurance schemes around the world : Evidence and policy options, ILO Research Department, Working paper n°49, 2019
• Baptista (I.), Marlier (E.), Spasova (S.), Peña-Casas (R.), Fronteddu (B.), Ghailani (D.), Sabato (S.) and Regazzoni (P.), Social protection and inclusion policy responses to the COVID-19 crisis, An analysis of policies in 35 countries,  European Social Policy Network, 2021
• OECD, Costa Rica Economic Surveys, July 2020 
• Deloitte, Namibian Budget 2021/22, Boosting Resilience and Recovery, March 2021
• WIEGO, COVID 19: Social Protection Innovative Practice Responses Government grants and cash transfers to informal workers
• Include platform, Novissi solidarity fund: Exemplary cash transfers during Covid-19, Hannah Itcovitz, August 2020 
• European Commission, Case study - gaps in access to social protection for economically dependent self-employed in Spain, March 2018
• (C.) Arza, Argentina’s Social Policy Response to Covid-19: Protecting Income and Employment, Global Dynamics of Social Policy, 2021
• OPC (2020) “Impacto financiero del Covid-19”, Oficina de Presupuesto del Congreso de la Nación Argentina (In Spanish)
• ILO, World Social Protection Report 2020-22: Social protection at the crossroads – in pursuit of a better future, 2021

• ILO, More than 4 billion people still lack any social protection, ILO report finds, September 2021 
• International Labor Organization, Covid-19 and the world of work, April 2020

• ILO Monitor : Covid-19 and the world of work. Eight edition, October 2021
•  SPEC Infographic, Pre-Employment Card Program, Indonesia
• The Jakarta Post, 70 million informal workers most vulnerable during pandemic, 3 April 2020 
• Discover society, Indonesia’s Pre-Employment Card Program : a saviour or a driver of inequality ?, Maria Sarah, July 2020
• (D.) Virgil, The right to employment security in post-COVID Indonesia, Open Global Rights, July 2020
• The Costa Rica News, Government Launches “Bono Proteger” For Workers Affected By Coronavirus Pandemic

• Le Monde, Au Togo, le coronavirus a accéléré la mise en place d’un revenu universel de solidarité, October 2020 (In French)
• The Spain Journal, More than 919,000 self-employed today receive the extraordinary benefit for cessation of activity, April 2020