The message that arrived on her cell phone as soon as the carnival holiday ended brought Éricka to the economic reality of what awaits her in a few weeks: “Good morning, parents, I make the express service available for this year school. I submit receipt or invoice”. A service that she did not use for two years, she will now have to hire again when face-to-face classes are resumed.
More new uniforms –because the children grew up– and the books, which in the pandemic were limited to the main subjects. That is why the fourteenth salary, which is equivalent to the basic salary of $425 and which workers in a dependency relationship will have in their hands this March, becomes more important. And you have to organize your destiny well and make the most of every dollar. How?
The first thing is that it is used efficiently and for its purpose. The fourteenth is to cover education payments, not for other purchases or vacation travel.
Pay in advance and take advantage of discounts These are two examples given by the president of the Circle of Economy of Guayaquil, Larry Yumibanda.
Some businesses have already started advertising deals, for example, on backpacks with discounts of up to 50%. But before buying, the state of each school implement or garment that they already have should be checked.
For example, only one everyday shirt and one gym shirt remain for Éricka’s son who is in fifth grade, the backpack and lunch box are intact.
Use of the fourteenth salary in Ecuador adjusts to the economy in times of pandemic
Jacqueline bought plus sizes last year, so she doesn’t plan to buy uniforms.
Ivette bought a set of t-shirts, warmers and sweaters for each of her children last October, when they were scheduled to return to school, so she spent $165 because she has three. She will have to buy at least one more change of clothes for each of them for this year, and she hopes to do it in cash because that way they give her an 8% discount, but she will wait until the week before classes start to be sure that there will be no turning back for the face-to-face classes.
Since employers must cancel it until March 15 and the start of classes in the Costa region is scheduled for May 3, think freeze that $425 in a time deposit for one month. Banking entities allow this type of investment from $200 and from 30 days, the return is very low for that period (about 80 cents on the dollar corresponding to a rate of 2.25% per year), but she does not to earn the interest but not to touch that money. “It’s already happened to me, something happens and I take that money, and I never replace it.”
These are the new dates for the return to face-to-face classes in Ecuador
For the president of the Circle of Economy of Guayaquil, at this point with the liberalization of the restrictions and the announcements of the Government “people must be prepared to return to normality, that implies that a budget must be established especially in education, with everything what is related to face-to-face classes: registration, pensions, supplies, uniforms, express, celebrations such as the Olympics.”
In a pandemic, some expenses were avoided, but others were covered, such as electronic equipment or payment for the use of platforms.
He considers that a lot of mobility will be generated in the economy, that the resources that were allocated to sectors to cover virtual classes, such as technology, will now be transferred to expressways, school bars and others.
When education items are already budgeted
If all the education items are planned with the salary, Yumibanda suggests more options, such as using this tenth for savings or 20% of that amount or investing in scheduled savings. Or cancel the debts dragged.
The minimum payment on credit cards extends the debt for more than 16 years
The specialists at Consejosfinancieros.org.ec also consider that this additional basic salary received in March can make a big difference if a minimum part is allocated to savings and that is the starting point. Programmed savings accounts allow people to allocate a certain amount of money on a monthly basis for a set time, financial institutions usually offer incentives for those who meet their goals. If the person decides to allocate 10% of the basic to savings, in one year they will have $510 plus interest. Whether you save $5 or $10 each month, “any value will have a positive impact on your financial health. The important thing is to start doing it”, indicates this portal managed by Fundación Crisfe.
Beneficiaries were fewer during the pandemic
Fewer and fewer people are receiving this benefit. In 2019 there were 1,643,707 workers who received the fourteenth remuneration, in 2020 – the year of the pandemic – there was a decrease of 6% and 1,542,301 people received this bonus, and in 2021 the drop was 4% and 1,480,933 workers received it. Those are the figures registered in the Ministry of Labor.
The number of workers who receive social benefits depends on the cut-off date, because they are transactional records and in this particular case late records can be provided, indicates the State portfolio.
Affiliates to the Ecuadorian Institute of Social Security (IESS) in a dependency relationship, who are the ones who have access to this bonus, totaled 2,487,685 as of December 2021. Retirees and those who receive alimony also receive fourteenth.
If the person worked between March 1, 2021 and February 28, 2022, they are entitled to full payment in March, if not, proportionally. This in the Costa and Galapagos regime. In the Sierra and Amazon, it is paid until August 15. (I)
Source: Eluniverso
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
