The reality of adjustments for wage discrepancies determined by the IGSS

It is well known that, as part of the exercise of its functions established in article 50 of its Organic Law, the IGSS, through employer auditors, has conducted reviews of the accounting records of the employers, under the presumption that the employer incorrectly reported the salaries earned by its employees. With these accounting reviews, even when the employer has complied with the complete payment of employees on time, based on Agreement 1421 of the Board of Directors, the IGSS establishes alleged wage differences, attributing to the incentive bonus the same classification as a salary. The employer is then notified of this difference, which, after an exhausting administrative process, is confirmed by the Financial Deputy Management, thereby creating additional unbudgeted economic burdens, that impacts the employer’s financial statements and commercial operations. 

Through regulatory methods, the IGSS has attempted to create additional obligations and economic burdens to the employer. Such claims may be legally defended within an administrative process before the IGSS, as well as through judicial proceedings. BLP is experienced in defending the employer against such arbitrary measures, obtaining favorable court rulings in favor of the employer. It would be a pleasure to advise you on these readjustments and carry out a proper defense.