Since they did not reach a consensus with the workers who make up the National Council for Work and Wages, the employers’ representatives assure that the basic salary for 2024, which the Government must determine, must be determined on the basis of the projected inflation for the next year, which is 2.07 percent.

The current Uniform Basic Wage (SBU) is $450, which means that if the 2.07% increase is applied, it would be $9.32. “Everything other than this is beyond the legal framework and technical parameters,” they claim.

Workers: If the basic salary is not raised by at least $25, “this government would be worse than Las, employers are ready for that”

The Chamber of Industry and Production reported that at the last meeting held this Friday, December 1, employer representatives reminded that the application of the methodology established by Ministerial Agreement No. 185 of October 19, 2020, which was adopted by the Ministry of Labor, and which includes technical parameters and aspects defined in the study conducted by the World Bank, would mean an increase of USD 4.12.

However, since an agreement was not reached, Article 118 of the Labor Law establishes that the salary must be determined on the basis of the inflation forecast for the next year: 2.07%, according to the official report of the Ministry of Economy and Finance, according to it, i.e. an increase of 9.32 dollars. Everything other than this is outside the legal framework and technical parameters, they pointed out in a statement published in the afternoon after the end of the meeting.

No consensus for salary increase: Daniel Noboa’s government will decide on the basic salary in 2024.

The employer sector reminds that at previous meetings there were known reports on the exercise of applying the formula and the impact on employment as a result of salary increases in recent years. However, no information was received from the opinion on the availability of the budget on the fiscal effect of a potential salary increase.

This shows that the Ecuadorian labor market has a structural problem characterized by economic informality, which is not able to create jobs under appropriate conditions and does not allow overcoming different forms of exclusion from work. In order to achieve this, it is essential to strive to reduce gaps in the workforce based on age, gender, territory and skills, and work to promote the formality of economic activity and employment.