Bill eliminates the state contribution for severance pensions

image: El Universo

A worker who earns a little would not benefit from the state contribution when requesting his severance pension, if the Optimization of the Workday and Unemployment Insurance bill is adopted.

The proposal includes labor reforms and a mechanism of monthly proections for unemployed people. However, it includes the repeal of the three unnumbered sections after Section 283 of the Social Security Act.

The latter establishes the Severance Solidarity Regime and states that “in the event that the accumulated fund in the individual severance account (of the affiliate) is lower than twice the remuneration paid to the affiliate during the last month before the termination date, the difference of both salaries will be financed by the State chargeable to the General Budget.” This benefit is in effect and is aimed at people who have been dismissed from their jobs.

Source: http://www.elcomercio.com/actualidad/proyecto-eliminacion-aporteestatal-cesantia-ecuador.html