What actions have companies taken as to salary increases and country risk is concerned for 2023?

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A research conducted by Andeanecuador Consultores Estratégicos C.L. explores and analyzes the companies’ distribution of profits to their collaborators during the most recent fiscal year. The study also determined salary increases made during this first quarter, identified action plans considered by organizations in the light of Unified Basic Salary (Salario Básico Unificado – SBU) increases approved by the Government year after year, and the considerations that companies are taking regarding country risk.

The analysis recently conducted by the Andeanecuador team, with the participation of 156 companies (local companies, 65 %, and multinationals, 35 %), confirms that 78 % of companies increased the salaries of their workers during the first quarter of 2023. In this case, the average was of 4.3 %. Local companies established an average adjustment of 4.4 % versus an average adjustment of 4.2 % by multinationals.

 

Breaking increases down by sectors we can see that the highest increases correspond to the commercial industry with 4.83 %, followed by the services industry, with 4.45 % and, finally, the industrial sector, with 3.98 %. Likewise, the three sectors with more salary increases were the technology sector (5.57 %), construction sector (4.94 %) and automotive sector (4.75 %), while sectors with lower increase rates were the flower sector (3.13 %), financial sector (3.36 %) and mass consumption sector (3.93 %).

Profits

Profits for fiscal year 2022, distributed by companies to their collaborators until April 15, 2023 are composed as follows: 10 %, distributed equitably, and 5 % distributed according to each worker’s family burdens. 

The average of profits credited based on the 10 % component was USD 2,859, which represents an increase of 11 % versus profits paid for the prior fiscal year. As to the 5 % credited on a family burden basis, it amounted to USD 923, also representing an increase of 11 % versus prior period. 

Further, an increase was recorded in maximum ranges. The 10 % base ceiling was USD 32,325, 6 % more than the value reported for the prior year, while the 5 % base ceiling assigned was
USD 10,550, 8 % below the amount assigned in 2022. 

Article shared by Deloitte Ecuador and written by Roberto Estrada, Consulting Partner at Andean Consultores Estratégicos C.L.

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