CCSS Paid More Than Normal For Severance Payments

During the past eleven years, the CCSS issued checks and deposited more money established by law for payment of unemployment to medical and administrative staff.

This was confirmed yesterday by the the entity financial manager, Gustavo Picado, adding that at this moment is unknown how much more turned the institution over this period.

Currently, the Social Security Fund (CCSS) pays an amount equivalent to 8.33% of salary when employees are pensionan are fired or death.

However, this contribution will go down to 5.33% after the institution’s Board of Directors agreed last Thursday, adjust the percentage.

The CCSS has budgeted for this year ¢ 46,000 million for severance pay of 1,250 employees who are lining up for their retirement. Now, with the decision of the directors, is expected to have a savings of ¢ 5,000 million.

CCSS union representatives said they will ask for explanations on the subject.

Since March 2001, the Act obligates the owner to contribute an equivalent of 3% of each employee’s salary for Labour Capital Fund.

The manager Picado said that , next July, the institution will only pay to their employees a 5.33% on account of unemployment.

In the next days, the entity shall publish in La Gaceta the reform of Article 41 of the Standard Industrial Relations of the CCSS that regulates the calculation.

“The payment we will see as an issue of law strictly,” said Picado.

Picado said that, the CCSS will pay 8.33% for each year worked before March 2011 and 5.33% of the time to join after that date.

In addition, the Board of the institution agreed to take a month to receive views on its proposal to reduce severance pay from 18 to 12 years maximum.

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