The Impact of Government Policies on Informal Sector Employees’ Participation in Social Security Schemes: A Case Study of Tanga City, Tanzania

Abstract

This study investigated the influence of government policies on the participation of informal sector employees in social security schemes in Tanga City, Tanzania. Utilizing a descriptive research design, the study sampled 91 informal sector employees. The research focused on three key policy indicators: eligibility criteria, accessibility, and subsidies or incentives. Findings revealed that clear eligibility criteria significantly influence participation, with a mean response of 3.76 and a standard deviation of 0.807. Accessibility was also crucial, with a mean of 3.84 and a standard deviation of 0.86, indicating that ease of access to social security schemes enhances participation. Additionally, government-provided subsidies or incentives were found to be influential, with a mean response of 3.90 and a standard deviation of 0.70. Based on these findings, the study recommends simplifying and clearly communicating eligibility criteria, decentralizing services to improve accessibility, and introducing or increasing financial incentives to encourage participation. These measures can help enhance the inclusion of informal sector workers in social security schemes, thereby improving their economic security and well-being. The study provides valuable insights for policymakers aiming to enhance social security coverage among informal sector workers, contributing to their economic security and well-being.