A worker working as an employee in Ecuador pays monthly contributions to the Ecuadorian Institute of Social Security (IESS), which gives him several benefits such as the possibility of medical care as well as funeral assistance.

Employees also have the option of receiving additional value or accumulation, this value corresponds to the reserve fund.

What are the IESS reserve funds for?

Reserve funds are earned by workers with more than one year of service at the same employer in accordance with the Labor Act. Since August 2009, the employer pays a monthly fund to its employees.

Those who do not decide to save in the IESS, in addition to their salary or compensation, receive an amount in the amount of eight point thirty-three percent (8.33%) of the compensation from the contribution.

The IESS indicates that branches must take into account that the amount is accumulated in reserve funds first guarantee for an unsecured loan.

Since 2011, it is necessary to have at least 36 monthly contributions to request a full or partial withdrawal.

The process can be done online. In the case of terminated members, the withdrawal process must be completed at the Third Party Fund Offices of the respective IESS Provincial Administration. While in the case of deceased members, the request is submitted by beneficiaries or debtors in the departments and units of third-party funds of the respective Provincial Directorate.