Government is considering increasing pensions for ONP retirees, announces Dina Boluarte

The last time the amount of pensions for retirees belonging to Decree Law 19990 was readjusted was on May 2, 2019 during the government of former President Martín Vizcarra and with Carlos Oliva as Minister of Economy and Finance (MEF). In that year, the increase in the minimum pension was S/85, going from S/415 to S/500.

Since then, this amount has remained static despite the increase in the cost of living and the unfulfilled promise of Dina Boluarte, who referred to this issue in the framework of an event for the National Day of Older Adults, in December 2023. Seven months later, the president spoke again about the increase in pensions for ONP retirees. This time, the stage was the Hemicycle of Parliament, where she gave her message to the nation.

They are considering increasing pensions for ONP retirees

During his second Message to the nation for the National HolidaysPresident Dina Boluarte announced that the pension amounts for retirees of the Pension Normalization Office (ONP) could increase after 22 years. By 2024, these benefits are set at S/500 for the minimum and S/893 for the maximum.

“I announce that I will instruct the Office of Pension Normalization (ONP) to evaluate the increase in pensions for our retirees, who, despite having dedicated their work and effort to the country, are those who earn the least and deserve recognition from the State to have a more dignified life,” said Boluarte.

This statement was made after the announcement of the call for National Labor Council to agree on a formula to determine the increase in the minimum wage, which should take place in the last quarter of this year, taking into account the economic recovery process that the country is undergoing.

Failed attempts to increase the ONP minimum pension

In 2023, President Dina Boluarte announced a possible S/100 increase in the pension of retirees under Decree Law 19990, in addition to the expansion of the Pension 65 Program. With this, the amount of the minimum pension would increase to S/600 and the maximum to S/1,000. However, this promise has not been able to materialize.

“We have come to tell them that there will be an increase in wages. Because in this stage of adulthood, which is the most difficult, we need more support,” said the president during an event for the National Day of Older Adults.

The reason why the increase in pensions in the ONP is stagnant is because said proposal was conditioned to the approval of the pension reform bill proposed by the Executive Branch, which did not advance in Parliament during the previous legislature.

This bill established an increase of S/600 for those who have contributed for 20 years and of S/400 for the orphan’s and widow’s pension. In addition, it sought to update said amount every three years, subject to approval by Congress at the request of the Executive Branch.

What is the ONP?

The Pension Normalization Office (ONP) is a Peruvian institution in charge of administering the National Pension System (SNP). Its main function is to manage and ensure the payment of retirement, disability, widowhood and orphanhood pensions to SNP members.

The ONP is funded by contributions from workers and employers, and ensures that contributions are used to provide pension benefits. In addition, the ONP works to modernize its services, promoting transparency and efficiency in the management of funds, to ensure adequate social protection for its members.