Beyond Informality – Labor Informality in Colombia and the Importance of Diverse Pathways to Social Protection

Labor informality is one of the largest and most complex challenges in Colombia’s labor market. It is neither marginal nor temporary: more than half of the employed population works under informal conditions, and this has remained constant over time. Although measures such as the 2012 Tax Reform (Bernal, Eslava, Meléndez & Pinzón, 2017), the 2010 First Employment Law (Becerra & Morales, 2025), and Decree 2616 of 2013 (Samaniego de la Parra, Otero & Morales, 2024) achieved some progress in formalizing youth and part‑time work, high informality rates persist.

This challenge will not be solved solely through regulatory frameworks designed for linear pathways into formal employment. It requires an approach centered on protecting, recognizing, and dignifying what millions of people already do—simplifying protection mechanisms, strengthening self‑management, and opening diverse pathways that guarantee rights and reduce precariousness. This approach not only reduces precarity: it also strengthens social cohesion and resilience, expanding institutional trust and the capacity to respond to external shocks.

This document seeks to provide inputs for an evidence‑based conversation that acknowledges the dynamics and historical persistence of labor informality and guides sustained action from the State and the entire employment ecosystem.

This policy brief summarizes key findings and proposals related to labor informality and is structured into five sections: the concept of informality; reasons for its relevance; a characterization of the people who make up the informal workforce; a population‑ and territory‑based analysis of those most affected; and a concluding section with recommendations for action. These guidelines point to policies that take into account the diversity of work, reduce precarity, and guarantee social protection as a universal right without imposing a single path to formalization.

Learn about the policy brief Beyond Hustling.

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