Julio Velarde: employers must contribute to the AFP or ONP of their workers

The president of the Central Reserve Bank of Peru (BCRP), Julio Velardewas in favor of employers also contributing to their workers’ pension funds – read AFP or ONP -.

In his opinion, this way we would have “a more stable (pension) system”, but he insisted that “it is the same” because it is the employees who finance their retirement with their salary. He gave as an example the contribution to EsSalud, which if not given, would translate into a higher salary.

“It’s your salary. EsSalud is paid by the company but it is part of your salary. The advantage, perhaps, is that people perceive that the company pays it when you really pay it (…) apparently people do not feel that they pay it and they do not ask for pension withdrawals. It’s your money, one way or another. Theoretically there is no difference but in perception, yes. And suddenly it’s better for the company to do it (…) If we didn’t pay EsSalud, maybe your salary would be higher,” he told the press during the presentation of the June Inflation Report.

It is worth adding that the pension reform approved in Congress – with only 38 votes in the second instance – does not contemplate a contribution from the employer.

Likewise, a few months ago, Velarde pointed out that the current rate of 10% that workers pay of their salary is not enough, and “little by little” it should be raised because if not, “they would have to retire later.”