Staying in a company leads to receiving various benefits, which become obligations for the employer. The Labor Code establishes that any worker who has completed more than 20 years and less than 25 years in the same company has the right to a proportional employer’s retirement.
Article 188 of the Labor Code establishes that workers who completed twenty to less than twenty-five years of service continuously or interruptedly will have this right, in the same way those who have been dismissed untimely can also access it.
IESS: what is the maximum value that a person can receive for retiring in Ecuador?
In order to access the proportional employer retirement, the following must be presented:
- Request for Employer Retirement addressed to the Regional Labor Director.
- Photostatic copy of the former worker’s citizenship card.
- Copy of the IESS Affiliation Card or notice of entry and exit from the IESS.
- Settlement Act for those who have between twenty and less than twenty-five years of service.
The Ministry of Labor specified that the documentation must be submitted to the entity’s Documentation and Archive Unit or to the Regional Directorates or provincial Labor Inspectorates.
In addition, technical assistance will be provided where the documentation will be reviewed and then officiate to the Ecuadorian Institute of Social Security and the company to send certifications related to the total amount of contributions and reserve funds, time of service and remunerations of the five best years, with these data we proceed to calculate the employer’s retirement.
How to process the IESS retirement and find out if the retirement requirements are met?
The retirement pension may not be greater than an average unified basic remuneration of the last year and neither less than thirty dollars a month or twenty dollars if he is a beneficiary of double retirement.
The calculation of the employer’s retirement consists of the sum equivalent to 5% of the average annual remuneration received in the last five years. This item will have to be multiplied by the years of service; the result will be divided by the age coefficient. The latter is divided by 12 months of the year. (YO)
Source: Eluniverso
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