He said that salvadorans who are receiving a salary and are pensioned, will have to continue paying their social security contributions, on the salary for working, as well as Income Tax (ISR).

He said that in order to continue receiving new actors to the Pension Savings System (SAP), they must continue to contribute, so that there is an inflow of cash and thus these savings can continue to be paid.

The Minister emphasized that with this reform, adequate levels are reached so that people can retire with dignity. He also stated that there is a generalized increase for pensions of approximately 30%.

With the new reform there is a 1% increase assumed by the employer and not by the workers.

He detailed that people who receive around US$500 with the new reform would be receiving around US$650, that is tos ay an additional US$150. Minimum pensions which were US$304 with the increase of the new law would increase to US$400.

According to the official, the Pension Law is new, with some elements of the old law that can be rescued, which are minimal.

Also, the Pension Obligations Fund Law, a mechanism used by the government of former President Saca, is repealed.

Translated by: A.M