Expat Exchange - Ecuador Minimum Wage Increase for 2014 - Tip for Living in Ecuador

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Ecuador Minimum Wage Increase for 2014

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expat_tip President Correa announced the monthly minimum wage will go up to $340 next year, an increase of $22. The wage hike is based on projected inflation for next year (3.2%) as well as productivity. The government set the rate after workers and employers failed to reach an agreement. The minimum wage is officially referred to as the Salario Básico Unificado (SBU). The new wage does not include the two bonus months pay that workers receive. Remember that as an Employer of any domestic or part time help, you are responsible for paying your employee correctly. If you have questions, visit your Ministry of Labor with your Employee to have them properly contracted and affiliated after their 30 day trial period so everything is legal to protect everyone from future misunderstandings.

Submitted on Dec 31, 2013 - Category: Living Overseas, Network: Ecuador

Comments

OceanHideaway replied on January 02, 2014 17:54:
If that employee is scheduled to receive the minimum wage. If they are hired for a more technical position for example, their wage is higher. The information of what level of work requires a specific minimum level of pay is set by the Ministry of labor and there are specific contracts made with the worker and a specific liquidation schedule -- workers cannot be fired at will (legally). There does still exist a grey area of part time work, and day labor, however that is being covered by more specific law over time. In addition there is a payment equivalent to one month's work that is filed with the IESS -- social security -- which is not included in the formula listed.
ctfla replied on January 01, 2014 13:37:
Let me understand this as I am considering a farming enterprise. The employee gets $340 for 12 months and then $640 bonus for a total yearly $4760.
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