The USD 10 increase in the Single Basic Wage (SBU) announced by Labor Minister Ivonne Núñez on Friday, December 15, is not only reflected in the increase of that basic allowance from USD 450 to USD 460, but also represents a series of changes in other calculations of the national economy . One of them is the one concerning the purchase of apartments, the maximum values ​​of which are aligned with this increase.

For example, it is now possible to access loans for public interest housing (VIP), whose value has increased from the upper limit of USD 103,050 to USD 105,340, and whose price per square meter should not exceed USD 1,145.40; On the other hand, social interest housing 3 (VIS) goes from the upper limit of USD 80,100 to USD 81,880.

The basic salary in 2024 in Ecuador will be 460 dollars

Loans for VIP houses enable the financing of up to 95% of the value of the house with an interest rate of 4.99%, the buyer pays only 5% of the down payment and can repay over a period of 20 to 25 years.

According to Joan Proaño, vice president of Constructores Positivos, the conditions for the buyer are that the monthly family or individual income does not exceed $2,916 and that he does not own another house in his name, subject to creditworthiness. Likewise, the property to be purchased must be brand new and must be qualified as VIP or VIS by the Ministry of Housing (Miduvi).

The increase announced by the Minister of Labor was carried out in view of the “inflation projected by the Ministry of Economy and Finance of 2.07% for next year, a mechanism aimed at reducing poverty, thus contributing to the efforts contained in the economic and social policy of the current regime, which seeks to ensure efficient redistribution of wealth, guaranteeing the satisfaction of the needs of all workers and their families,” the minister indicated in a video released by her state department.

Ecuador’s $460 base pay increase: That’s the value of overtime, vacations, tithes and night shifts

The Ministry had to take responsibility for determining the new SBU, applying Article 118 of the Labor Law, which stipulates that if the National Council for Labor and Wages does not reach a consensus decision on determining the basic salary, “the Minister of Labor will determine it in a percentage increase that is equivalent to projected index of consumer prices, which is established by a public body authorized for this purpose.