IGSS affiliates who were missing up to 12 installments for an old-age pension will be able to make voluntary contributions

The Ministry of Labor published this Friday, October 28, Government Agreement 257-2022 in which it approved the entire content of Agreement number 1521 of the board of directors of the Guatemalan Institute of Social Security (IGSS) in which the rules for the Voluntary contribution for missing quotas for an Old Age Pension.

In agreement 1521 of the IGSS, issued on August 4, 2022, it details that according to the Regulation on protection related to disability, old age and survival, one of the minimum requirements to be entitled to a pension is to have accredited a certain number of contributions to that entity. .

It adds that when analyzing the applications submitted by affiliates who wanted to opt for said pension, it was found that many were denied for not meeting the required number of contributions and that is why a mechanism is now established that allows this group to access the benefit by completing these fees.

The IGSS agreement now establishes, in article 1, that the payment of up to 12 contributions will be allowed to members who, having requested an old-age pension, did not meet the minimum quotas to be entitled to it.

Requirements for voluntary contributions

Article 2 mentions that in order to become a voluntary contributor, the member must meet the following conditions:

• a) Have at least 60 years of age
• b) Have applied for an old-age pension
• e) That the analysis carried out by the Department of Disability, Old Age and Survival determines that he lacks up to 12 contributions to be entitled to an old age pension.

Article 3 explains that for the acceptance of the member as a voluntary contributor it can be in the following ways:

• a) Ex officio: In the ex officio acceptance, the Department of Disability, Old Age and Survival, when analyzing the application and determining that the conditions established in the preceding Article are met, will notify the interested party of the resolution of their pension application. and acceptance as a voluntary contributor.
• b) At the request of a party: When the interested party has been notified of the resolution of his case, he may request the Institute to incorporate him as a voluntary taxpayer.

Also read: Suspensions due to covid-19 will not affect the right to subsidy payment to IGSS affiliates

The calculation of the amount of the voluntary contribution will be made based on the salary of the last month of mandatory contribution, in the percentages of the labor and employer contribution, which is stipulated in subparagraphs a) and b) of Article 40 of Agreement Number 1124 ” Regulation on Protection Regarding Disability. Old age and Survival of the Board of Directors, as established in article 4 of the new agreement.

It adds that in the event that the salary of the last month of mandatory contribution is less than the current minimum monthly salary of the non-agricultural activity at the time of the request, the latter will be used as the basis for the respective calculation of the amount of the voluntary contribution.

Payments

As stipulated in agreement 5, the IGSS will only receive the fee corresponding to one voluntary contribution per month, even if the voluntary contributor fails to pay it for more than one consecutive month.

It adds that the payment of accumulated contributions, which result from the date on which the benefit was requested, and the notification of the resolution in which he is accepted as a voluntary contributor, which may be made at any time, are excepted.

Also read: The business sector lists the current weaknesses of the IGSS and suggests measures to reinvent it

loss of rights

According to article 6 of the regulations, the right to be a voluntary taxpayer conferred by this agreement is lost for the following reasons:

1. Due to the death of the member.
2. By express resignation of the affiliate
3. For compulsorily contributing again to the Social Security Regime with an Employer formally registered with the institute.

It is established that in no case, the affiliate will lose the right to be a voluntary contributor due to non-payment of monthly contributions or contributions considered accumulated.

The management of the IGSS is empowered to dictate all the necessary provisions for the application of this agreement.

The agreement will enter into force two days after the approval made by the Ministry of Labor, that is, on October 30, 2022.