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Weekly Report - 05 January 2023 (WR-23-01)
EL SALVADOR: Contentious pensions reform approved
At the end of last year El Salvador’s 84-member legislature, which is controlled by President Nayib Bukele’s Nuevas Ideas (NI), approved his government’s proposed pension reform. Upon taking office in June 2019, Bukele had pledged to reform the country’s pension system which dates back to 1998 and is privately managed by Administradoras de Fondos de Pensiones (AFP). The approved reform, which took effect on 29 December, fails to address unions’ demands for the system to be nationalised and has drawn major criticism from civil-society groups and think tanks over issues like sustainability.
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