Compensation funds: their contribution becomes $1.5 million a year

More than 681,600 private companies currently contribute 4 percent of their payroll to the family compensation systemwhich after the possibility of tax deduction remains at 2.7 percent and, according to Adriana Guillén, president of you associate, it has a redistributive effect on households that can be transformed into 1.5 million annual benefits.

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“Instead of paying 480,000 pesos a year for a worker who earns a minimum wage, the company will end up paying 312,000 pesos, corresponding to 2.7 percent of that minimum wage for a year, which means a difference of 168,000 pesos in favor of the employer”, Guillén said in version number 32 of the National Congress of family compensation fundsr, which is held until Friday in Cartagena.

For example, -he explained- a woman with her two children in which her employer contributes 312,000 pesos for them during a year after tax deduction, that resource becomes 1.5 million pesos. That person receives 1.1 million pesos represented in monetary quota, 118,000 pesos in subsidies in uniforms and school supplies, 303,000 pesos in a scholarship from a first-rate school and 67,000 pesos for making use of recreation services.

“It is utopian to think that an employer can deliver 1.5 million pesos more to its collaborators per year, in addition to bonuses and severance pay, as is expecting it to finance each of its workers for the purchase of a home, the delivery of an unemployment subsidy or a funeral aid. For these and many other reasons, we know that this social benefit creates economies of scale, which ratifies us as sources of value and social cohesion”, assured Guillén.

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Of the total of 10.3 million workers in the boxes, 7.7 million have a salary between 1 and 2 million pesos.

“These people are no longer a priority in the targeting of State subsidies and aid because technically they have income derived from a formal employment relationship,” stressed Guillén, who said that they seek that 54 percent of their vulnerable workers cross the line and consolidate as middle class.

Big companies subsidize small ones.

And on the business side, Guillén explained that 5,000 large companies contribute 57 percent of the system’s resources and 16,000 medium-sized ones contribute another 16 percent of the benefit. When adding these two actors we find, he said, that 73 percent of the contributions to the Family Subsidy that are irrigated in the workers of 661 micro and small companies.

“Large companies – which are few – subsidize micro and small companies, which are the great mass, in such a way that their lower-income workers are the ones who receive the most benefits. This is how compensation works”, explained the president of the union.

Compensation funds: their contribution becomes $1.5 million a year