Affiliates under a dependency relationship with the Ecuadorian Social Security Institute (IESS), upon becoming unemployed, have the option of withdrawing their severance funds. These resources are compulsory savings that accumulate during working life and which can be accessed when unemployed or retired.
These funds correspond to 2% of the worker’s monthly contribution and are registered in the individual unemployment accounts. Until April 2022, 41,052 dismissed members benefited from this economic benefit, for which the IESS disbursed more than 90 million dollars. While, in 2021, 212,484 affiliates requested the return of the dismissal, which added a total of 433 million dollars.
How to consult and request my IESS reserve funds
To access the severance fund, the affiliate must have accumulated 24 contributions, not necessarily simultaneous; you must wait two months, from the date of the exit notice, to submit the application. The procedure is totally virtual and is carried out on the IESS website.
What are the requirements to withdraw unemployment funds in Ecuador?
- Be unemployed for a minimum period of 60 days.
- Have 24 non-simultaneous contributions.
- Not have an outstanding unsecured loan.
- Make the severance application through the IESS website.
If the affiliate maintains current unsecured credits or amounts in arrears pending with the institution, the system will not admit the entry of the request for the withdrawal of said funds.
How to review the amount that has been accumulated by unemployment?
Enter the portal www.iess.gob.ec, to “Online Services”, in the “Insured” section. Click on “Affiliates” and select the option “Unemployment”. Enter the ID number and password. Select the option “Repayment Concession System” and click on “View individual account details”; the data and value will be displayed.
How to withdraw unemployment funds?
Register a bank account by entering the portal www.iess.gob.ec, “Online Services”, “Insured” section, click on “Affiliates”; then, select the option “Unemployment”. Enter the ID number and password.
Important data you should know about unsecured loans in Ecuador
Select “Resettlement granting service”, option “Request for withdrawal of unemployment funds”; and, if you agree, click “Accept”. Your deposit will clear within three to five business days into your registered bank account.
How long does it take for the IESS to disburse the severance funds?
The IESS has a term of no more than 30 days to deposit the securities.
Why can’t I withdraw the severance funds if I have a current unsecured loan?
Because the values of the fund are compromised by said loan. In this case, it is the Bank of the Ecuadorian Social Security Institute that performs the crossing of values automatically from the 60th day that you are in default, and exclusively on the 2nd and 20th of each month.
Yasmeny Loiza became unemployed three months ago. She comments that, when she was fired, she was only interested in the settlement, but she did not know that she had the severance fund. She adds that it was her friends who advised her to withdraw that savings in order to “survive” these months.
What are IESS pledge loans? How to apply?
“I entered the IESS page and did everything digitally. I made the request. There it shows you a spreadsheet of what has been accumulated. What I had as unemployment plus the liquidation has helped me in these months, ”he indicates. He affirms that the disbursement was made within the stipulated period.
The severance fund is not the same as unemployment insurance
Another way to obtain liquid money for a member who has been laid off is unemployment insurance. This is nourished with a 1% contribution from the employer, which constitutes a solidarity fund. This fund will cover 70% of the unified basic salary in effect on the date of separation and will be paid in a fixed and monthly manner for five months.
Can I apply for unemployment insurance and withdraw the severance fund at the same time?
If possible. The IESS system presents two options:
1. Unemployment insurance plus severance pay (if you do not have a current unsecured loan).
two. Unemployment insurance only.
However, if the unemployment funds are withdrawn first, the system will not allow you to apply for unemployment insurance. (YO)