Economy May 9, 2024 | 1:00 pm

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CNUS president pushes for monotributo system in the Dominican Republic

Santo Domingo.- Rafael Abreu (commonly known as Pepe), the president of the National Confederation of Trade Union Unity (CNUS), is advocating for the establishment of a social security system in the Dominican Republic akin to the “monotributo” model found in other parts of the world.

Abreu indicates that he is on the verge of finalizing an agreement with President Luis Abinader, which entails the implementation of the monotribute system. This system would involve registering the entire population through a cooperative organization.

The proposed methodology primarily targets informal workers who are self-employed, requiring them to contribute a portion towards insurance coverage, with the assurance that the State will cover the remainder.

“In the pact we aim to sign with the President, we aim to introduce the monotax system, whereby individuals who operate independently, such as street vendors, contribute to the system for their own protection and that of their families,” Abreu explained during an interview with journalist Martina Espinal on the “Al Punto Vespertino” program.

Abreu points to Uruguay as an example where a monotax system exists. In Uruguay, individuals from all walks of life, including street vendors, are registered in the system and contribute voluntarily because they recognize its benefits.

Abreu’s proposal coincides with the impending 23rd anniversary of Law 87-01, which regulates the Dominican Social Security System (SDSS). He suggests that changes to the law would be beneficial for a society that requires a government willing to make a greater commitment to informal workers.

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May 10, 2024 7:31 am

Everyone registers, anyone with income below 25mil per month, it’s free. everyone above, it’s 2%. Politicians, land, and company owners pay first.