NewsWhore
09-06-2010, 02:40 PM
The president of the Federation of Industrial Associations, Ignacio Mendez, said on Friday that the slow increase in operating costs for businesses is pushing many small and medium-sized companies to migrate to the informal sector. Mendez said that businesses operating in the informal sector do not pay ITBIS, social security or Infotep, and often do not even pay for water or electricity services. He says the informal sector does not register its workers with the Ministry of Labor or any other government agency and has fewer issues with the Labor Code. The formal sector is estimated to have to pay 60% more in benefits to employees compared to those in the informal sector.
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