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The limit for payment of profits is maintained at 24 basic salaries
Posted On 20 Feb 2018
Ecuadornews:
The Ministry of Labor, through a statement, clarified that the limit of the payment of distributed profits to workers has not had any alteration. The Organic Law for Labor Justice and Recognition of Labor (April, 2015), in its article 15, states that the ceiling of profits may not exceed 24 unified basic salaries (SBU).
For this year the payment of earnings will have a limit of $ 9,264, since the current basic remuneration is $ 386. According to the law, in case the value exceeds the amount indicated, the surplus will be delivered to the Social Security.
Since the enactment of the legislation, several groups presented constitutional actions to stop the measure, without there being any ruling by the Constitutional Court. In this regard, the Ministry indicated that it will accept what the Court or the National Assembly determines. In this way he denies rumors about supposed institutional agreements that referred to the payment of profits.
“Any ministerial act that anticipates the decision of the Court, in relation to the Decree of the values corresponding to the utilities, could constitute grounds for embezzlement (improper use of public funds) with civil and criminal liability for the officials that contradict what was resolved by the Court”. (I)
