Labor

The Labor topic measures good practices in employment regulations and public services from the perspective of both enterprises and employees across three different dimensions, here referred to as pillars. The first pillar assesses the quality of labor regulations pertaining to workers' conditions and employment restrictions and costs, covering de jure features of the regulatory framework that are necessary for the functioning of the labor market and to provide employers and employees with their obligations and relevant safeguards. The second pillar measures the adequacy of public services for labor, assessing the de facto provision of social protection and the institutional framework on which the labor market and the enforcement of labor regulations depend. The third pillar measures the operational efficiency of labor regulations and public services in practice, assessing employment restrictions and cost, as well as public services. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Latest Score: 2024
%
image
# Description Value
1 Time to dismiss full-time permanent worker (weeks) 2
2 Weeks paid in severance 0
3 Percent of firms involved in labor dispute over last 3 years (%) 4
4 Time to resolve labor dispute (months) 2
5 Percent of firms visited or inspected for health and safety (%) 60
6 Percent of firms with a report issued for health and safety inspection (%) 68
7 Labor taxes as percentage of all taxes paid in the last fiscal year (%) 18
8 Perceptions index of labor regulations as a constraint 89
9 Percent of firms offering formal training programs to their permanent, full-time employees (%) 50

Detailed Score for each Pillar - Year 2024

%
Regulatory Framework
%
Public Service
%
Operational Efficiency

Regulatory Framework

The first pillar assesses the quality of labor regulations pertaining to workers' conditions and employment restrictions and costs, covering de jure features of the regulatory framework that are necessary for the functioning of the labor market and to provide employers and employees with their obligations and relevant safeguards.

Public Services

This second pillar measures the adequacy of public services for labor, assessing the de facto provision of social protection and the institutional framework on which the labor market and the enforcement of labor regulations depend.

Operational Efficiency

The third pillar measures the operational efficiency of labor regulations and public services in practice, assessing employment restrictions and cost, as well as public services.