Starting in January 2024, workers will receive a new basic wage: $460. The price increase was $10, the Ministry of Labor announced.

“The percentage increase in the uniform basic salary of workers in general for the year 2024 compared to the year 2023 is 2.223%, which will be applicable for determining the sectoral minimum wages, which are found in the tables of the respective sectoral commissions.” , stated in the Ministerial Agreement no. MDT-2023-175.

With this increase, the value of the working hour also increases. How is it calculated?

We divide the basic salary, that is, $460 (as of January) by 240, which is the equivalent of 30 days times eight hours. So that’s $1.91 per hour of labor.

When do they pay the thirteenth salary in Ecuador?

This means that the worker will earn that much during one hour of work. If you add eight hours, that’s roughly $15.28. This applies to people who already receive a basic salary. Before, with a salary of $450, the hourly value was $1.88. So it went up $0.03.

Likewise, this increase goes hand in hand with overtime, overtime, vacations, tithes, and other items.

Extraordinary working hours

With the increase in the basic salary, overtime hours also known as extra hours, i.e. those that are worked when the employee has a day off or a holiday, also increase.

This value is obtained as follows:

Article 95 of the Labor Law talks about wages or salaries: “For the purpose of paying compensation for damages to which the worker is entitled, wages are considered to be everything that the worker receives in money, services or in kind, including what he receives for overtime and additional work, work by a piece, commissions, profit share, individual contribution to the Ecuadorian Social Security Institute when taken over by the employer or any other compensation that is customary in the industry or service. Exceptions to the legal percentage of profit are the monthly reserve payment, travel expenses or occasional subsidies, thirteenth and fourteenth incomes, economic compensation for the minimum living wage, parts of the salary in the process of incorporation into receipts and compensations representing social order services.

Earning $450 or more? This is what you will get as your thirteenth salary in Ecuador

Additional hours

Overtime hours are hours worked after the normal working day. That is, when a person whose schedule is from 08:00 to 16:30 and after that works for another hour, or until 17:30. This last hour is supplementary.

How much does it increase?

Night shift

The night shift, prescribed in Article 49 of the Labor Law, mentions that it is 19:00 to 06:00 the next day and is entitled to a 25% salary increase. This means that for a worker who earns basic income, I used to get $2.33 per night hour, now it will be $2.38.

How will we get the increase? Likewise, we need to know the value of the watch. Divide $460 by 240 to get $1.91. For this, we calculate 25% (multiply $1.91 by 0.25 = $0.47) to determine your extra payment for night shifts.

Add $1.91 to $0.47 for a total of $2.38.

We say

By 2024, due to the increase, the value of both the thirteenth and fourth salaries will differ.

The fourteenth wage, which is an economic bonus offered to dependent workers, will no longer be $450, but $460, which is an additional basic wage. This is an employee incentive that is being discontinued until March 15 in the Coast/Galapagos region and until August 15 in the Sierra/Amazon region.

And as for the thirteenth salary or Christmas bonus, it is a different amount for the year 2024. This item corresponds to one twelfth of the compensation that the worker would have received from December 1, 2023 to November 30, 2024.

This is how it counts

We calculate the base salary for December 2023, which is $450, and add eleven months in 2024, with a new salary of $460. The total is 5510.

Can you save during the Christmas season? Experts suggest this in order to put the thirteenth salary to good use

Divide that amount by twelve and you get $459.16. This is the amount that this citizen will receive in 2024 as the thirteenth person with the new basic salary.

Meanwhile, in December 2023, workers receiving the basic pension will have a thirteenth paycheck of $447.91.

Rest

Article 69 of the Labor Law states that workers will have the right to an uninterrupted vacation of fifteen days a year, including non-working days.

“Workers who have worked for more than five years in the same company or with the same employer will have the right to an additional day of annual leave for each extra year or will receive compensation for the extra days in money.” says the article.

According to labor lawyer Vanessa Velásquez, the calculation for annual leave is simple. Just divide $460 by two and you get $230. This is the annual value for annual leave with a salary increase.