Dear
Clients and Friends:
Romero
Pineda & Asociados informs you that on July 28, 2015, the Board of
Directors of the Salvadoran Social Security Institute (ISSS) formed on a
tripartite basis by the State, private enterprise and workers, unanimously
approved an increase to the maximum wage contribution, based on Article 3 of
the Regulations for the Implementation of the Social Security Regime.
In
this regard, the maximum ceiling contribution from US $ 685.71 to US $ 1,000 starts
from August 1, 2015. The contribution quotas to cover the general health system
and professional risks pursuant to Article 29 of the Social Security Law remain
static, therefore the employer will continue to contribute 7.5% and the
employee 3% of his/her wage, as follows:
Monthly Wage
|
Increase
|
Total
|
US$
685.71
|
-
|
US$
20.57
|
US$
700.00
|
US$
0.43
|
US$
21.00
|
US$
750.00
|
US$
1.93
|
US$
22.50
|
US$
800.00
|
US$
3.43
|
US$
24.00
|
US$
850.00
|
US$
4.93
|
US$
25.50
|
US$
900.00
|
US$
6.43
|
US$
27.00
|
US$
950.00
|
US$
7.93
|
US$
28.50
|
US$
1,000.00
|
US$
9.43
|
US$
30.00
|
Consequently,
the modification shall not affect those employees with a wage lower than US $
685.71 nor the pensioners.
In
addition, this increase will have a direct impact on the services provided by
the ISSS, for instance the payments of temporary disability, incapacity benefits
deriving from an occupational risk as well as maternity leave allowance,
meaning that a worker who earned a wage above US $ 1,000.00 will receive 75% of
the new maximum contribution ceiling and not of US $ 685.71 as before.
For
additional information and legal assistance on this or any other Corporate
and/or Labor matters, please feel free to contact Jose Freddy Zometa (Partner
of the Corporate Division) and/or Beatriz Merino (Coordinator of the Labor
Unit), at (503) 2505-5555 or email: fzometa@romeropineda.com and
bmerino@romeropineda.com.
We
will be pleased to assist you.
