Retirement pensions triggers a heated debate

Image: Expreso

How does it currently work? After 25 years at the same company, the employee is entitled to receive a pension provided by the employer. The monthly minimum is $ 20 (if he receives a pension from the Social Security) and $ 30 if he doesn´t receive his pension.

Section 216 of the Labour Code (which includes the public sector) determines the conditions for obtaining the benefit and further explains that “in no case shall the monthly retirement pension will be greater than the average unified basic salary of the last year.”

An agreement of the Ministry of Labour tried to clarify, on September 16, the term ‘unified basic salary’ pointing out it should be understood as `the unified basic salary at the termination of service of the worker.´ That is, this year, $ 354.

Reviews were immediate. Workers announced demands and rejected the intrusion of the ministry functions.

According to Jaime Arciniegas, a member of the Labor Parliament, the portfolio of State can not interpret the law. That, he said, is up to the National Assembly. The Association Retired Technicians, Pensioners and Senior Citizens joined the complaints.

This is because the workers consider that the pension calculation should be based on the average salary of the employee. That is, their monthly salary. That is the most widely used mechanism.

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8476679&idcat=38269&tipo=2