On Monday, the Labor Commission of the Chamber of Deputies must decide on the initiative which, if approved, will pass to the plenary to become law, but if it is rejected, the whole process will be paralyzed.

One of the main new elements of the reform is the contribution of the employers, equivalent to six percent of the salaries paid, which will improve the income of pensioners, especially those who receive the lowest pensions.

Initially, Minister of Labor Jeannette Jara proposed to allocate part of this money to promote women’s employment, two to workers’ individual accounts and the remaining three to increase the lowest pensions.

Faced with the controversy over this formula, the Executive adopted the suggestion from the Christian Democrats to allocate half to the employees’ fund and the rest to a solidarity pillar managed by a public-private institution.

The latter variant would leave each worker free to choose the pension accumulation model that suits him/her best.

jg/arm/mem/car/eam