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Ecuador - Minimum Wages - 2011


LAST UPDATE

17 October 2011

SOURCES


Name of Act

Ministerial Agreement N° 00249 fixing Minimum Wages (Acuerdo Ministerial N° 00249) of 23 December 2010.

Name of Act

Labour Code (Codificacion del Codigo del Trabajo) of 30 June 1978, as amended up, to Act 2006-40 of 26 April 2006 (Registro Oficial, 2006-04-27, núm. 259, págs. 2-4).
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Name of Act

Act n° 100- Childhood and Adolescence Code, (Codigo de la Niñez y Adolescencia) of 3 January 2003, Registro Oficial 737

Name of Act

Constitution of the Republic of Ecuador (Constitución Política de la República del Ecuador) of 20 October 2008.

LEGAL DEFINITIONS


Employee/worker

Worker shall mean any person who renders services or executes work.
Labour Code Art.9

Employer

Employer shall mean any person or any entity, of any kind, for whom work is executed or a service is rendered.
Labour Code Art.10

Wage

Wage shall mean the daily or monthly remuneration paid by an employer to an employee according to a labour contract.
The wages are freely fixed, but in no case in a lower rate than the general rate of minimum wage.
Labour Code Art.80, 81

Minimum wage

Minimum wage shall mean the minimum remuneration which applies to all categories of workers in general and which serves as a basis of calculation of other minimum wage rates per sector that in no case may be lower than the general minimum wage.
Labour Code Art.117
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

The National Wage Council, a technical institution whcih takes part of the Ministry of Labour and Employment and which is composed by the Assistant Secretary of Labour (President), a representative of the National Federation of Chambers of Industry, Agricultural, Small Enterprise and Building, and a representative of a legally recognised Trade Union, shall advise the Ministry of Labour about the wage policy and the remunerations which should apply generally to all categories of workers and per sector, according to the characteristics of the development of the country.

To this purpose and in order to fix the minimum wage rates which shall apply to the different sectors of the economy, the National Wage Council (CONADES) may appoint tripartite sectorial committees to make recommendations about the need of fix and revised the minimum wage rates in determined private sectors.
Labour Code Art.118,119,122, 123

Criteria


Needs of workers and their families

Yes. The remuneration shall be fair and decent and shall cover at least the basic needs of the worker and his family.
Labour Code Art.126
Constitution of the Republic of Ecuador Art.328
Ministerial Agreement N° 00249 fixing Minimum Wages Third Recital

Cost of living

Yes. In order to fix the minimum wage rates, it shall be taken into account the general cost of living in the country and the economic and social characteristics of the geographical area in which will apply.
Labour Code Art.126
Ministerial Agreement N° 00249 fixing Minimum Wages Third Recital

Social security benefits

Yes. In order to fix the minimum wage rates, it shall be taken into account the social security benefits.
Ministerial Agreement N° 00249 fixing Minimum Wages Third Recital

Economic development

Yes. In order to fix the minimum wage rates, it shall be taken into account the economic development of the country.
Ministerial Agreement N° 00249 fixing Minimum Wages Thrird Recital
Labour Code Art.126

Productivity

Yes. In order to fix the minimum wage rates, it shall be taken into account the effective productivity in the country.
Ministerial Agreement N° 00249 fixing Minimum Wages Third Recital
Labour Code Art.126

Level of employment

Yes. In order to fix the minimum wage rates, it shall be taken into account the eventual needs of achieve and maintain a high level of employment.
Ministerial Agreement N° 00249 fixing Minimum Wages Third Recital

Coverage


Scope

The united minimum wage (SBU "Salario Básico Unificado") applies to all categories of workers in general, (included workers of small industries, agricultural workers and textile industry "maquila" workers), domestic workers, craft workers, and microenterprise collaborator.

However specific minimum wage rates by sector and occupation are provided annually by sectorial Committees, which in no case may be lower than the united minimum wage (SBU).
Labour Code Art.117
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

Excluded categories

No exclusions from the application of the minimum wage rate as for categories of workers.
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

Specific minimum wage rates


» Specific minimum wage by sector

The minimum wage rate applicable generally for all categories of workers expressly applies for the following sectors: 1-workers in the small scale industry sector, agricultural sector, textile industry sector (maquila). It is also applicable for domestic workers, and workmen of craftsmanship.
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

» Specific minimum wage by region

Relevant provisions regarding different minimum wage rates by region have not been identified.
However the legislation provides the need of taking into account the socio-economic situation of an specific region in order to fix the minimum wage rates for this territory.
Labour Code Art.126.1

» Minimum wage levels for specific categories of workers


» Trainees

The remuneration of apprentices can not be lower than 80% of the remuneration paid to an adult performing a similar work.
Childhood and Adolescence Code Art.90

» Domestic Workers

Apart from the agreed remuneration in cash between the parties, the employer shall provide accomodation and foodstuff to the employee unless otherwise provided.
Labour Code Art.268

» Other categories

Part-time workers are paid a pro-rata basis at least the equivalent of the applicable minimum wage rate for full time workers.
Labour Code Art.82

Level


Minimum wage level(s) in national currency

The minimum wage for all categories of workers in general, (included workers of small industries, agricultural workers and "maquila" workers), domestic workers, craft workers, and microenterprise collaborators is fixed in USD 264,00 per month.
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

Last minimum wage update

1 January 2011
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

In-kind allowances

In kind allowances are permitted as remuneration, and its value shall be agreed between the parties. In cases in which this is not possible, the value of such allowances shall be fixed by a judge.
In no case the remuneration of a worker, whether in cash or in kind or both, may be lower than the minimum wage rate.
Labour Code Art.95, 393

Rate of payment


» Monthly

Yes- Wages are fixed on a monthly basis.
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

Specific provisions

Minimum wage rates are set in US dollars.
Ministerial Agreement N° 00249 fixing Minimum Wages Art.1

Scheduled frequency of adjustment

The minimum wage is fixed and revised annually by the State, and its application compulsory and general.
Constitution of the Republic of Ecuador Art.328

Enforcement mechanisms


Labour inspection

Authorized labour inspectors operating per provinces may carry out inspections in order to ensure the compliance with labour legislation.
Labour Code Art.544

Fines in national currency for non-respect of legislation

Fines for non compliance with labour legislation may be imposed in an amount up to US$ 200.
Labour Code Art.628

Other penalties

In case of repeat offence, the fine shall be increased in a prudential percentage or the maximum fine may be imposed.
Labour Code Art.632

Results generated on: 23rd September 2014 at 02:21:31.
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