LatinNews Daily - 12 March 2026

*Paraguay’s senate has approved a bill to update the rules and conditions governing state pensions. The reform will now be returned to the lower chamber of congress, where it was initially approved in February, following modifications made in the senate, including an increase in the employer or state contribution to 10%, up from 5% in the bill passed by the lower chamber and 3% in the original reform proposed by President Santiago Peña. The pension reform proposes different retirement ages for various sectors and different rates of pension payments. For example, university teaching staff and court magistrates will be eligible to receive pension payments at the age of 53 if they have at least 25 years of service, with a pension repayment rate of 78%, while employees of the national police with 25 years of service would be eligible for a pension at the age of 55, with a repayment rate of 75%. These ages are lower than those proposed in the bill approved by the lower chamber. For these sectors the repayment rate is increased if they retire at an older age and if they have had more years of service. The bill continues to face criticism from workers’ unions, with teachers’ unions taking to the streets in recent days to slam the legislation as unsatisfactory.