He said that this increase will serve to provide guarantee and sustainability to people, it is a new law that comes to dignify the lives of Salvadoran workers who once helped in the country's economy.

For this reform they stated that the retirement age will be maintained: women will retire at 55 years old and men at 60. With the 30% increase in contributions, the minimum retirement amount that salvadorans will receive, including those who are already retired, will be US$400.

The minimum pension contribution period will continue to be 25 years of work and the lifetime pension will be maintained when the balance of the Cuenta Individual de Ahorro para Pensiones (CIAP) is exhausted.

The State has spent US$346 million from the Pension Fund to maintain the "VIP pensions" applied to 684 people, who enjoy pensions higher than US$5,000.

However, with the new regulation these amounts would be reduced to US$3,000 (maximum ceiling), which would represent an annual savings of US$6.5 million.

In addition, the contribution rate of the system will be increased by 1%, from 15% to 16%. This increase will be assumed by the employer, reaching 8.75% and maintaining the worker's contribution at 7.25%.

Translated by: A.M