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<h1>Social Security Programs Throughout the World: The Americas, 2009</h1>
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<h1>Ecuador</h1>
<div class="exchangeRate">Exchange rate: Currency is the <abbr class="spell">US</abbr> dollar (<abbr class="spell">US</abbr>$).</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1928.</p>
<p><span class="h4">Current law:</span> 2001 (social security).</p>
<p><span class="h4">Type of program:</span> Social insurance and social assistance system.</p>
<p>Note: The provision under the 2001 law to create a system of individual accounts to complement the social insurance <span class="nobr">old-age</span> pension program and a social assistance program for needy elderly and persons with disabilities was not implemented.</p>
<p>The social insurance system also includes a special program to provide <span class="nobr">old-age</span>, disability, and survivor benefits for families of rural workers and fishermen. The program is financed by a nominal contribution from the head of the family and contributions from workers, employers, and government in the social insurance system.</p>
<h3>Coverage</h3>
<p>All persons who receive income for work.</p>
<p>Voluntary coverage for persons without mandatory coverage, including Ecuadorian citizens living abroad.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> 6.64% and 8.64% of gross earnings for private- and public-sector employees, respectively; 9.74% of gross earnings for voluntary contributors.</p>
<p>The minimum earnings for contribution calculation purposes are $185 for microenterprise workers, $200 for household workers, $218 for private-sector workers, and $370 for public-sector workers.</p>
<p>There are no maximum earnings for contribution calculation purposes.</p>
<p><span class="h4">Self-employed person:</span> 9.74% of gross declared earnings.</p>
<p>The minimum earnings for contribution calculation purposes are $185 for microenterprise workers, $200 for household workers, $218 for private-sector workers, and $370 for public-sector workers.</p>
<p>There are no maximum earnings for contribution calculation purposes.</p>
<p><span class="h4">Employer:</span> 3.10% and 1.10% of gross payroll for private- and public-sector employees, respectively.</p>
<p>The minimum earnings for contribution calculation purposes are $185 for microenterprise workers, $200 for household workers, $218 for private-sector workers, and $370 for public-sector workers.</p>
<p>There are no maximum earnings for contribution calculation purposes.</p>
<p><span class="h4">Government:</span> 40% of the cost of <span class="nobr">old-age</span>, disability, and survivor social insurance pensions; contributes as an employer.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4"><span class="nobr">Old-age</span> pension:</span> Paid at any age with at least 480&nbsp;months of contributions; age&nbsp;60 with at least 360&nbsp;months of contributions; age&nbsp;65 with at least 180&nbsp;months of contributions; or age&nbsp;70 with at least 120&nbsp;months of contributions.</p>
<p><span class="h4">Disability pension:</span> The insured must have at least 60&nbsp;months of contributions including the 6&nbsp;months before the disability began and an assessed loss of more than 50% of earning capacity; 120&nbsp;months of contributions and not be in receipt of an <span class="nobr">old-age</span> pension if the disability began within 2&nbsp;years after the termination of employment.</p>
<p><span class="h4">Survivor pension:</span> The deceased had at least 60&nbsp;months of contributions or was an <span class="nobr">old-age</span> or disability pensioner at the time of death.</p>
<p>Eligible survivors include a widow or female partner who cohabitated with the deceased male; a dependent, disabled widower or male partner who cohabitated with the deceased female; dependent children younger than age&nbsp;18 (no limit if disabled); and, in the absence of other survivors, a dependent mother and a dependent, disabled father.</p>
<p>The <span class="nobr">widow(er)'s</span> pension ceases on remarriage or cohabitation.</p>
<p><span class="h4">Funeral grant:</span> The deceased had at least 6&nbsp;months of contributions in the last 12&nbsp;months or was an <span class="nobr">old-age</span>, disability, or survivor a pensioner.</p>
<h3><span class="nobr">Old-Age</span> Benefits</h3>
<p><span class="h4"><span class="nobr">Old-age</span> pension:</span> The monthly pension is equal to a percentage of the insured's average monthly earnings in the 5&nbsp;best years of earnings. The percentage varies according to the total number of years of contributions (50% for 10&nbsp;years, 75% for 30&nbsp;years, 81.25% for 35&nbsp;years, and 100% for 40&nbsp;years).</p>
<p>The minimum monthly pension is $109.</p>
<p>The maximum monthly pension is $981.</p>
<p><span class="nobr">Old-age</span> pensioners may continue to work and receive a pension, except if the employer in the first year the pension is received was the pensioner's last employer.</p>
<p>Schedule of payment: 12&nbsp;monthly payments plus 2&nbsp;bonus payments a year.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to the percentage of inflation set by the government for the previous year.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Disability pension:</span> The monthly pension is equal to a percentage of the insured's average monthly earnings in the 5&nbsp;best years of earnings. The percentage varies according to the total number of years of contributions (43.75% for 5&nbsp;years, 50% for 10&nbsp;years, 62.5% for 20&nbsp;years, 68.75% for 25&nbsp;years, and 75% for 30&nbsp;years).</p>
<p>The minimum monthly pension is $109.</p>
<p>The maximum monthly pension is $981.</p>
<p>Schedule of payment: 12&nbsp;monthly payments plus 2&nbsp;bonus payments a year.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to the percentage of inflation set by the government for the previous year.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> 40% of the pension the deceased received or would have been entitled to receive is paid to an eligible <span class="nobr">widow(er)</span> or partner.</p>
<p><span class="h4">Orphan's pension:</span> Each orphan younger than age&nbsp;18 (no limit if disabled) receives 20% of the pension the deceased received or would have been entitled to receive; 40% for a full orphan.</p>
<p><span class="h4">Other eligible survivors (in the absence of the above):</span> A mother or father receives 20% of the pension the deceased received or would have been entitled to receive.</p>
<p>The minimum survivor pension is for a family group is $109.</p>
<p>The maximum survivor pension is for a family group is $981.</p>
<p><span class="h4">Funeral grant:</span> Up to $817.50 is paid.</p>
<h3>Administrative Organization</h3>
<p>Social Security Institute (http://www.iess.gov.ec), through its Directive Council, regulates and administers the program.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1935.</p>
<p><span class="h4">Current law:</span> 2001 (social security).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>All persons who receive income for work and beneficiaries of <span class="nobr">old-age</span>, disability, work injury, or survivor benefits (orphans until age&nbsp;6 only).</p>
<p>Voluntary coverage for persons not subject to mandatory coverage.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None for employees; beneficiaries of survivor pensions contribute 4.15% of the pension; 5.71% of gross earnings for voluntary contributors.</p>
<p><span class="h4">Self-employed person:</span> 5.71% of gross declared earnings.</p>
<p><span class="h4">Employer:</span> 5.71% of payroll.</p>
<p><span class="h4">Government:</span> The total cost for <span class="nobr">old-age</span>, disability, and work injury beneficiaries.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Cash sickness and medical benefits:</span> The insured must have at least 6&nbsp;months of contributions before the date the incapacity began or at least 189&nbsp;days of contributions in the 8&nbsp;months before the date the incapacity began. Coverage continues for 60&nbsp;days after the insured ceases to pay contributions.</p>
<p><span class="h4">Cash maternity benefits:</span> The insured must have at least 360&nbsp;days of contributions in the year before giving birth or at least 378&nbsp;days of contributions in the 16&nbsp;months before giving birth. Prenatal care is provided with at least 6&nbsp;months of contributions.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit:</span> For the first 10&nbsp;weeks, the benefit is 75% of the insured's earnings used for contribution calculation purposes in the 3&nbsp;months before the incapacity began. The benefit is paid for up to 70&nbsp;days; thereafter, 66% for up to 182&nbsp;days.</p>
<p><span class="h4">Maternity benefit:</span> The benefit is 75% of the insured's last earnings used for contribution calculation purposes and is paid 2&nbsp;weeks before and 10&nbsp;weeks after the expected date of childbirth. The employer pays 25% of the insured's last earnings for the same period.</p>
<h3>Workers' Medical Benefits</h3>
<p>Medical services are provided directly to patients through the medical facilities of the Social Security Institute. Benefits include general and specialist care, surgery, hospitalization, medicine, laboratory services, and dental care. A refund for the cost of medical care provided through medical facilities not belonging to the Social Security Institute is possible in case of emergency.</p>
<h3>Dependents' Medical Benefits</h3>
<p>Full medical care is provided for children of insured persons until age&nbsp;6.</p>
<h3>Administrative Organization</h3>
<p>Social Security Institute (http://www.iess.gov.ec), through its Directive Council, regulates and administers the program and operates its own clinics, dispensaries, and hospitals.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1964.</p>
<p><span class="h4">Current law:</span> 2001 (social security).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>All persons who receive income for work.</p>
<p>Voluntary coverage for persons without mandatory coverage.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None; 0.55% of gross earnings for voluntary contributors.</p>
<p><span class="h4">Self-employed person:</span> 0.55% of gross declared earnings.</p>
<p><span class="h4">Employer:</span> 0.55% of payroll.</p>
<p><span class="h4">Government:</span> 40% of the cost of the cost of work injury pensions.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<p><span class="h4">Occupational disease benefits:</span> The insured must have at least 6&nbsp;months of contributions.</p>
<h3>Temporary Disability Benefits</h3>
<p>For the first 10&nbsp;weeks, the benefit is 75% of average earnings in the 3&nbsp;months before the disability began. The benefit is paid after a <span class="nobr">2-day</span> waiting period for up to 70&nbsp;days; thereafter, 66% until the end of the 12th&nbsp;month.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Permanent disability pension:</span> The pension is 80% of average earnings (100% if constant attendance is required) in the last year or in the previous 5&nbsp;years (whichever amount is greater).</p>
<p>Partial disability: A percentage of the full pension is paid according to the assessed degree of disability.</p>
<p>Schedule of payments: 12&nbsp;monthly payments plus 2&nbsp;bonus payments a year.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to the percentage of inflation set by the government for the previous year.</p>
<h3>Workers' Medical Benefits</h3>
<p>Benefits include medical and surgical care, hospitalization, appliances, and rehabilitation.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> 40% of the pension the deceased received or would have been entitled to receive is paid to a widow or female partner who cohabitated with the deceased male, or a dependent, disabled widower or male partner who cohabitated with the deceased female.</p>
<p><span class="h4">Orphan's pension:</span> Each dependent orphan younger than age&nbsp;18 (no limit if disabled) receives 20% of the pension the deceased received or would have been entitled to receive; 40% for a full orphan.</p>
<p><span class="h4">Other eligible survivors (in the absence of the above):</span> A dependent mother or a dependent, disabled father receives 20% of the pension the deceased received or would have been entitled to receive.</p>
<p>The minimum survivor pension is for a family group is $109.</p>
<p>The maximum survivor pension is for a family group is $981.</p>
<p><span class="h4">Funeral grant:</span> Up to $817.50 is paid.</p>
<h3>Administrative Organization</h3>
<p>Social Security Institute (http://www.iess.gov.ec), through its Directive Council, regulates and administers the program.</p>
<h2>Unemployment</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1951.</p>
<p><span class="h4">Current laws:</span> 2001 (social security).</p>
<p><span class="h4">Type of program:</span> Mandatory individual account.</p>
<h3>Coverage</h3>
<p>All employed persons.</p>
<p>Exclusions: Self-employed persons.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> 2% of gross earnings.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> 1% of gross payroll.</p>
<p><span class="h4">Government:</span> Provides subsidies in special cases; contributes as an employer.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Unemployment benefits:</span> The insured must have at least 24&nbsp;months of contributions. The benefit is paid after 2&nbsp;months of unemployment.</p>
<h3>Unemployment Benefits</h3>
<p>A lump sum of the value of the accumulated capital plus accrued interest is paid.</p>
<p>The value of the accumulated capital plus accrued interest is paid to the insured person when they begin to receive an <span class="nobr">old-age</span>, permanent disability or permanent work injury pension; if the insured person dies, the benefit is paid to a widow, a disabled widower, children younger than age&nbsp;18, or, in the absence of a spouse and child, certain other surviving relatives.</p>
<h3>Administrative Organization</h3>
<p>Social Security Institute (http://www.iess.gov.ec) administers the program.</p>
<h2>Family Allowances</h2>
<h3>Regulatory Framework</h3>
<p>No statutory benefits are provided.</p>
<p>Mothers assessed as needy with at least one child (younger than age&nbsp;18) and low-income families receive a monthly allowance under the Bono de Desarrollo Humano program.</p>
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