1st Bac - Ecuadorian Institute of Social Security

 Benefits of being affiliated to IESS

When a worker is affiliated with the IESS, immediately, he begins to have the right to a series of benefits, especially related to the field of health protection that, in several cases, can be affected by the exercise of labor activity you have been hired for. Among the main obligations that must begin to be fulfilled, in a timely manner, from the moment a worker joins the IESS are: payment of personal contributions, payment of employer contributions and payment of reserve funds.

Employer contributions

It is the additional payment to the worker's compensation that the employer must make on a monthly basis. In the case of private sector workers, who are in a dependency relationship, the contribution is equal to 11.15% that must be paid to the IESS during the first 15 days of each month.

Hence, this item must be part of the monthly budget of costs and expenses required by the operation of the business that has been created by the entrepreneur.

Personal contributions

On the other hand, the personal contribution is the contribution that, subtracting from their remuneration, the worker gives to the IESS as part of the maintenance of their affiliation. For private sector workers, who are in a dependency relationship, the personal contribution is equal to 9.45%; in the same way that the employer's contribution must be paid during the first 15 days of the month.

In the case of workers, despite the fact that the personal contribution reduces their remuneration, they must become aware of the immediate benefits - health services - and future - work retirement - that they will obtain thanks to the affiliation that has been generated to the system of Ecuadorian social security.

Reserve Funds

They are the payment that the employer is obligated to pay after one year of the worker's service in the business. This value can be received by the worker directly -each month- together with his salary or make the respective request so that these funds are accumulated in a special account of the IESS. It should be noted that these accumulated funds, after 36 monthly contributions or more, may be withdrawn due to the work

The amount that the employer must pay monthly for Reserve Funds is equivalent to one twelfth of the remuneration received by a worker. Hence, within the monthly financial budget of the project, the owner must include this item as part of the cost structure.

The iess member pays a contribution to the IESS of 9.45% of his or her salary, while the employer pays 11.15% of the worker's salary.


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