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On October 8, 2025, the Plenary Session of the National Court of Justice issued Resolution No. 16-2025, which establishes binding case law regarding the treatment of reserve funds in the calculation of employer retirement benefits, in accordance with Article 216 of the Labor Code.
Prior to this precedent, the last paragraphs of Article 216 allowed employers to deduct from individual retirement assets the amounts deposited with the IESS as employer contributions or reserve funds.
The Court established as a rule that, for the calculation of individual employer retirement assets, the reserve fund provided for in Rule 1 of Article 216 of the Labor Code must be considered.
In this regard, employers may only deduct from the retirement fund the amounts contributed or paid to the worker as reserve funds, but not employer contributions to the IESS, as these are different items.
This criterion is adopted by applying the principle of favorability to the worker.
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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.