President Luis Lacalle Pou stamped his signature together with the Council of Ministers on the “Common Pension System” law.
Today, the President of the Republic, Luis Lacalle Pousigned the promulgation of the social security reform. The head of state made the law effective, which is called the “ Common Pension Systemtogether with the Council of Ministers.
Among the main, and most controversial changes that the law will bring, is the increase in the retirement age from 60 to 65 years, which will begin to be applied from the year 2032 with a scale linked to the date of birth, where provides special treatment that increases benefits for families that include children with disabilities.
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“The previous retirement regime will be fully applied to those who have set up retirement grounds or set it up until December 31, 2032”, establishes article 15.
In turn, it allows retired people to maintain a job and establishes a solidarity supplement for the lowest salaries, among other points. “This reform will last over time, because it is fair and supportive,” Lacalle Pou had pointed out in a recorded message minutes after the law was approved in the Senate.
Also, there were changes in the configuration of the Individual Savings Pillarwho manage the Pension Savings Fund Administrators (AFAP), since the approved regime maintains the obligation of individual savings (for any level of income) but reduces the contribution to the AFAP from 7.5 to 5%.
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“5% on the corresponding taxable matter up to the sum of 107,589 pesos and 15% of the higher amount indicated up to 215,179 pesos will correspond to the retirement regime for mandatory individual savings, as a personal contribution”, expresses article 86, which replaces article 6 of the current law.
Most of these provisions will come into force three months after the standard is published in the Official Gazette by the National Directorate of Official Impressions and Publications (IMPO).
Source: Ambito
