Symplifica is an online platform that helps employers formally register their domestic workers. Unregistered domestic workers typically have no access to employment-related social security, accident insurance, or health care. They get no paid annual or sick leave. They may receive less than the minimum wage, and often work for longer than the maximum working hours. Ninety-five percent of them are women. Limited data suggests that today less than 20 percent of domestic workers in Colombia are registered. The time burden and complexity of the registration process in Colombia is often cited as key reasons for low compliance levels. Symplifica operates as a bridge between employers and the tedious paperwork. It offers employers a monthly subscription that helps legally enroll domestic workers into social security systems, formalize written contracts, and manage monthly payments for domestic workers. Symplifica was incubated through InQlab venture capital, and the Soros Economic Development Fund invested $1.75 million USD to support Symplifica’s efforts to expand, both within Colombia and across Latin America.
Theory of Change
Facilitating formalization of employment for thousands of domestic workers improves their agency and financial independence, prevents exploitation, and alleviates families from poverty.
The company aims to revolutionize the formalization of work in Colombia by making available a tool that allows households to fulfill their duties with their employees in the simplest and most pleasant way, without having to become experts in payroll management. The online platform helps connect domestic workers to the social security system, formalize the employment with a contract and all the relevant documents as well as calculate the payroll and contributions to state funds. It allows online payments of salary, contributions and benefits and for management of all the documentation, and it provides an opportunity for consultations on related issues. The company also launched Symmplifica Trabajadoras, an application for workers where they can find information on their employment, social security entities, benefits. The app connects the workers with educational resources and opportunities for subsidies and potential jobs. It also helps them join a community of 10,000 workers.
As of 2022, the company has helped 22,000 workers. For the majority, this marked their first participation in national social security programs. 15,000 employers have joined Symplifica, and 10,500 are currently active on the platform. Over time, the company hopes to start offering more products and services such as bank accounts, rewards programs, and life insurance products. Symplifica is also expanding to Mexico, a country with one of the largest populations of domestic workers in the region.