Deputies vote on the social security reform

Of the four points that Town meeting put as a condition to vote on the project, there were two fundamentals that the president Luis Lacalle Pou accepted: the drop from the 25 to the 20 best years worked to calculate retirement –a change that will cost US$300 million, that is, 0.3% of GDP- and the withdrawal of the articles that allowed the AFAP invest abroad.

For his part, he Colorado party obtained a gradual decrease in Social Security Assistance Tax (IASS) and a new retirement age scale according to the number of years contributed (at 63 with 38 contributions and at 64 with between 35 and 37 contributions).

Once the social security reform project is approved, taxpayers must continue to allocate 15% of their salary to social security, but 10% will go to the Social Welfare Bank (BPS) and the remaining 5% to AFAP. Currently, workers who earn more than a certain remuneration and opt for individual savings contribute 7.5% to the BPS and 7.5% to the AFAP, recalled Uy Press.

The previous concessions of the Executive

Already in March, with the debate frozen in the Special Commission of the Chamber of Deputies, the government of Luis Lacalle Pou had agreed with the legislators of the coalition on various changes to the project voted on in the Senate.

There were modifications in the voluntary and complementary regimens; extension of the widow’s pension (current regime is maintained); the reduction of the required years of marriage (minimum of two years) and concubinage (minimum of five years) to access the pension cause for widowhood; the incorporation of articles on situations of disability; and the suppression of the possibility of early withdrawal of money from the individual savings account, among others, detailed Uy Press.