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Granting the minimum benefits stated by the Labour Code; Retaining the corresponding tax and social security contribution from the employees salary; Financing a private retirement plan in addition to the public retirement pension, when the employee has worked for the same employer for 25 years; Providing the hired personnel with the required work tools and security equipment (if applicable) to render services; Registering as employer before the Ecuadorian Social Security Institute (IESS); Affiliating employees to the IESS; and Retaining and paying social security contributions. All social benefits paid by the employer are tax deductible.
Two weekly days off As a general rule, for every consecutive five days of work, employees are entitled to enjoy two paid days off. Holidays The Labour Code states that the following days are mandatory holidays: 1 January, Good Friday, 1 May, 24 May, 10 August, 9 October, 2 November, 3 November and 25 December. Annual vacation The employee is entitled to enjoy 15 paid days of vacation per every year worked. After the first five years worked in the company, employees are entitled to enjoy one extra day per year worked with a maximum of 15 extra days. Only these extra days can be denied by the employer, paying the correspondent compensation. Christmas bonus To be paid until 24 December and equivalent to a twelfth
of all wages earned in the year, not including social benefits or bonuses described in this section. School bonus To be paid until 15 April (Coast Region and Galapagos Islands) or 15 August (Highlands and Amazon Regions), equivalent to one minimun legal salary, which is changed every year. The minimum legal salary was set in US$ 292,00 for 2012. Profit sharing The Labour Code states that employees are entitled to participate in the 15 per cent of the employers profits. This benefit must be paid until 15 April, every year. Reserve fund According to the Labour Code, employers are required to deposit in an account, a monthly salary per year worked, from the second year of work for each employee. The total fund would be available to the employee upon retirement. However, a recent governmental decision established that the employer must pay that extra monthly salary on a pro rata basis in the employees normal monthly salary. Minimum wage compensation.If a company has profits, it must assure every employee to receive the amount of US$350.70 per month.
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