Excerpt from article found in CuencaHighlife.com:
IESS announced the fee changes earlier in the week in Quito, saying they were necessary to correct “inequities” that occurred during the 2013 expansion of the system’s voluntary membership program.
According to IESS, the revisions affect several thousand voluntary members, mostly Ecuadorian citizens who had not paid into the system over their working careers, but also foreign residents from about 20 countries.
Beginning in July, all voluntary members will be required to pay an amount equal to 17.6% of their income to participate in the system. In the case of expats whose residency visa is based on recurring income, the amount will be determined by income certified in their residency application.
Other permanent residents, such as those with investor’s visas, will need to provide proof of monthly income.
Under the new calculation, a foreign resident with a monthly income of $900 would pay $158.40 for IESS membership. For an income of $1,500, payment would be $264.
Rates for dependents of permanent residents covered by IESS will also increase.
Currently, most voluntary members pay a percentage based on Ecuador’s national minimum wage, or $375 a month. “That is obviously unfair to workers and their employers who contribute based on the full amount of their salaries,” an IESS spokeswoman said in Quito. “The adjustment is simply intended to make payments fair for all members and fully fund the system.”