All dependent workers have the right to the thirteenth salary, which according to the Labor Law, employers must pay by December 24. However, in order to obtain this Christmas bonus, as it is also known, there would be restrictions for workers who file alimony claims, as well as for professionals who provide their services, according to former Labor Undersecretary Pedro Cruz.

Article 111 of the Labor Law establishes that workers have the right to have their employer pay them a salary in the amount of one twelfth of the salary they received during the calendar year by December 24 of each year.

Which workers are entitled to the payment of the thirteenth salary?

According to Cruz, the thirteenth paycheck is “non-withholding and cannot be garnished,” but according to a court order in the case of workers with child support claims, companies must comply with a family and child judge’s order and keep the percentage set aside for minors. “It’s an automatic hold, an order issued by family judges,” he said.

Article 91 of the Labor Law talks about the non-binding of wages. “Compensation for work will not be confiscated, except for the payment of alimony.”

Even those who have not been hired under any modality, whether occasional, definite, temporary or indefinite, do not have the right to the thirteenth salary, explained Cruz, who is a lawyer himself. “Therefore, professionals and self-employed workers, craftsmen who by law do not receive this annual Christmas bonus, have no right here.”

The former labor undersecretary indicated that this additional bonus is not deductible from income tax payments and is not used to contribute to the Ecuadorian Social Security Institute (IESS), nor is it added to severance or eviction compensation.

Until when employers must pay the thirteenth salary

Regarding the obligations of employers regarding the thirteenth salary, Cruz indicated that those who do not pay can be sanctioned in accordance with the provisions of the mandate component 8, which applies to impose a fine on companies that do not pay, in this case, the thirteenth salary.

Article 7 of the constituent mandate 8 states that “they will be punished in the manner prescribed by the corresponding articles of the aforementioned legal body, and if no special sanction has been established, the regional director of labor will impose fines of at least three and more up to twenty salaries or a single basic salary. ..”.

The lawyer also indicated that all employers must inform the Ministry of Labor how much they have paid workers.