Evasion in The Payment of Social Security Contributions in The Informal Economic Sector

Abstract

The research aimed to identify the level of evasion in the amortization of social security contributions by the informal sector in the Galería Popular (Public Gallery) of Valledupar for 2022 and 2023, as well as its implications and penalties. Likewise, the legal regulations regarding the amortization of contributions in Colombia are studied. The legal consequences for employers in the sector who evade payment of this commitment are also the same. In any case, the main sanctions imposed by the UGPP on employers who fail to comply with affiliation and payment of contributions, as well as the legal consequences of these omissions, are also examined. Because the failure to pay contributions affects the sustainability of the social security system, we observe that it has economic consequences for both workers and the Colombian State. Furthermore, the need to strengthen oversight and sanction strategies to mitigate this problem and promote labor formalization is highlighted. The findings revealed that evasion of this payment affects citizen protection processes, job stability, and the pension system, highlighting the magnitude of the damage caused by evasion and avoidance, which exposes the country to instability in the social security system.