The independent legislator Jaime Quito Sarmiento has presented bill No. 7103, with the objective of gradually increasing the minimum pension in the National Pension System (ONP), until it is equal to the minimum vital remuneration, currently set at S/1,025.
This initiative responds to the ruling of the constitutional Court of 2019, which ordered Congress and the Executive to progressively increase the minimum pension to ensure the well-being of retirees.
ONP: how much would the pension increase in three years with the bill?
The current minimum pension is S/500 and, according to the Quito Sarmiento proposal, it could be increased to S/1,205 in a maximum period of three years.
“Congress and the Executive have disregarded the TC ruling on the increase in pensions for five years. Therefore, with project 7103, we propose a compliance route; We have calculated that, with an approximate contribution rate of 5% of the remuneration by employers, the equalization of the minimum pension with the minimum remuneration can be financed. And this should be the general rule,” declared the parliamentarian.
How would the pension increase be carried out?
The project suggests that the increase be carried out gradually to avoid fiscal imbalances, especially in the public sector. Private companies would increase their contributions little by little, while microbusinesses would have a reduced rate of 50%.
In addition, the creation of a complementary pension contribution by the employer is recommended to reinforce the financial stability of the ONP.
When was the last debate on the increase in the minimum pension?
Although the Congressional Economic Commission was scheduled to debate the report on the modernization of the pension system on December 6, the session was postponed.
This prediction included the increase in pensions to S/600 for ONP retirees as of January 2025, a proposal that differs from that of the Ministry of Economy and Finance, which proposes an increase from the beginning of next year.
What is the current minimum pension in the ONP?
The current minimum pension in the Pension Normalization Office (ONP) of Peru is S/500 per month. This amount applies to retirees who have met the minimum requirement of 20 years of contributions to the system. The ONP is the entity in charge of administering the National Pension System (SNP) in the country, and this minimum pension seeks to ensure a basic income for pensioners who have contributed during their working life.
What is the ONP?
The Pension Normalization Office (ONP) is responsible for administering the National Pension System (SNP). This is one of the two main pension systems in the country; the other is the Private Pension System (SPP), administered by the Pension Fund Administrators (AFP).
The ONP is in charge of collecting contributions from affiliated workers, managing the system’s funds and granting pensions and other benefits to its retirees and beneficiaries.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
