Companies in Ecuador that made a profit in fiscal year 2022. must pay overheads to their workers by Saturday, April 15, 2023.

This compensation is established by Article 97 of the Labor Law, which mentions that the employer or company will recognize in favor of its workers 15% of net profit.

The profit is distributed as follows:

To determine the annual profits of the respective companies, applications or calculations for the purpose of paying income tax will be taken as a basis. In addition, the employer will take into account the length of service, without making any distinction with the income or the type of occupation or activity of the worker or former worker who worked during the fiscal year in which the profit was made.

According to Article 97 of the Labor Law, the distribution will be made through the majority association of the company’s workers and in proportion to the number of these family obligations that the worker duly entrusted to the employer. If there is no connection, the delivery will be direct.

This is determined by the law Workers who receive bonuses or bonuses will not be entitled to profit whose amount is equal to or greater than the set percentage. In addition, artisans are exempt from paying a share of profits in relation to their workers and apprentices.

To see if a worker, who has stopped working in a certain company, has an amount due, you can do it by selecting from the menu Servicesoption “Utilities and a living wage”, via the website of the Ministry: http://www.trabajo.gob.ec/

It can also be viewed by going directly to the website: http://consultaconsignaciones.trabajo.gob.ec/ConsultaConsignaciones/pages/consultaConsignacion.jsf