MEXICO CITY (Pakistan Point News / Sputnik - 23rd July, 2020) The Mexican government published on Wednesday the details of the proposed retirement reform that is set to increase pensions up to 40 percent on average.
"The reform will make it possible to increase workers' pensions by 40 percent on average. These are radical changes," Mexican Finance Minister Arturo Herrera said at a press conference, broadcast by the government on its Twitter account.
A key component of the reform is to increase retirement contributions by employers from the current 6.5 percent to 15 percent, whereas the government will compensate the income of least-earning citizens.
Additionally, the replacement rate for the poorest will be increased to vary from 53 - 103 percent, meaning the portion of income they can expect to be receiving in retirement payments.
The reform will also decrease the minimum required work experience from 25 to 15 years, which means that many workers in informal employment will be able to retire at 60, the universal retirement age.
The reform is expected to be scrutinized by Mexican lawmakers during the upcoming fall sessions in September.
