jueves, 30 de julio de 2015

Increase of the maximum wage contribution for social security starting from August, 2015.


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.


No hay comentarios:

Publicar un comentario