The Parliament of El Salvador has approved this Tuesday a reform of the pension law that will increase these subsidies by 30 percent, eliminate the withdrawal of balance advances and allow the Government to access pension funds without limits.
With 67 votes in favor, two against and twelve abstentions, the Salvadoran Legislative Assembly approved an increase in contributory pensions, leaving out of the reform, however, the elderly who did not contribute to the system, reported ‘La Prensa Gráfica’.
The increase also excludes pensions for the death of a family member and disability pensions. In addition, workers who withdrew an advance from their savings will not be eligible for this increase, and the calculation will be based on the amount withdrawn from their account and the total amount saved.
On the other hand, the law will raise the labor contribution to the Pension Savings System (SAP) by one percentage point, increasing from 15 to 16 percent of the salary as a savings contribution for each worker.
Thus, the minimum pension in El Salvador – which corresponds to those not included in this reform – will be 304.17 US dollars (286.48 euros), far from the 400 dollars (376 euros) promised by the Government of El Salvador, as detailed by the Salvadoran newspaper ‘El Mundo’.
Source: (EUROPA PRESS)
