The Government will assume part of the Social Security contribution

A controversial measure. The announcement of the Minister of Economy and Finance Carlos de la Torre ignites the alarms among businessmen, experts and workers. According to the official, the Government is studying the possibility of a fiscal devaluation in the Ecuadorian Institute of Social Security (IESS).

What does this entail? In the words of the minister, the employer’s contribution to the social security (11.15%) will decrease. Although he did not specify the exact amount, the measure would serve to generate more sources of employment. An incentive that would adjust depending on the economic sector.

President of the Quito Chamber of Commerce (CCQ) Patricio Alarcón sees this gesture as unproductive. “Competitiveness does not come from contributions to the IESS. It can give liquidity to the productive sector, however, we must see what compensation they are thinking of,” he said.

For him,  it is more useful to review, eg, tax payments like the advance of the Income Tax. (I)