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Five issues of concern in unemployment insurance
Posted On 28 Feb 2016
The unemployment insurance proposal, which seeks to replace the current severance fund of social security affiliates, presents five complex points (see chart), which, according to former officials and social security experts, should be clarified during the debate on the Optimization of the Workday and Unemployment Insurance bill, sunbmitted by the Executive branch to the Assembly on Tuesday as a matter of urgency.
The standard raises an unemployment insurance instead of the severance fund, which was an individual account of the affiliates, funded with 3% of their contributions. This insureance will be paid for up to five months and will be financed with a percentage redistribution.
Of that 3%, 1% of the employer contribution will go to a solidarity fund and the 2% of workers will go to the individual account, according to the proposal.
That, in the opinion of the former head of the Ecuadorian Institute of Social Security (IESS) Marco Morales, will imply a reduction in the resources that also served as retirement savings. (I)
