As part of the implementation of the Comprehensive Pension Law, in force since December 2022, the Regulations Committee of the Banco Central de Reserva (BCR) announced the Technical Norms for the Implementation of the Single Spreadsheet in the Pension System.

This instrument is designed to level the payroll of workers registered by the Instituto Salvadoreño del Seguro Social (ISSS) and the one sent by the Administradora de Fondos para Pensiones (AFP) of those who contribute for their retirement.

It will be managed by the supervising entity, that is to say the Superintendencia del Sistema Financiero (SSF). "The Superintendence will develop, implement and manage a single payroll system, through which employers will prepare and declare the payrolls of the Pension System and the ISSS".

This means that even the Instituto Salvadoreño de Pensiones (ISP) is obliged to keep its database updated and submit it.

For many years, both registries maintained a difference that revealed a strong evasion of social security contributions by unscrupulous employers.

Thanks to this new system, they will no longer be able to do so. This will benefit at least 100,000 workers.

Within the regulations approved by the BCR Committee, it was established that for this Single Payroll System, the DUI will be used in the case of natural persons. However, minors, foreigners and companies or legal entities will have to present the Tax Identification Number.

The first SPU filing will be the one containing the information of active workers as of june 2023, which will be submitted to the authorities the following month, that is, during the first 10 days of july.

Translated by: A.M