Excess of profits will be deposited by companies in the Social Security

Image: Expreso

After the adoption of the Law for Labor Justice and Recognition of Home Labor, in April, the Ministry of Labour issued the Ministerial Agreement 241 which establishes the destinations for royalties from the private sector.

The aforementioned Act establishes a maximum of 24 basic unified wages ($ 8,496 in 2015) for each employee as a profit bonus. The surplus shall be assigned to the Ecuadorian Institute of Social Security (IESS) to finance the affiliation of housewives.

According to Richard Espinosa, Chairman of the Institute, the state funding of the new affiliation will exceed 43 million in 2016.

The agreement of October 30 clarifies that companies will have to deposit the excess of profits into an account determined by the IESS. The deposit has to be notified to competent authorities.

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8652179&idcat=38269&tipo=2