Salary, Pension Reforms to Drain $3.4 Billion From Peru’s Coffers

Peruvian lawmakers are pushing public salary and pension reforms that may add an extra 12 billions soles ($3.45 billion) in spending over the next year, according to a financial watchdog.

A series of measures that raise pensions for the military and police and grant labor benefits to temporary public workers, among others, have been greenlit in recent weeks by a Congress that over the past year and a half has also advanced dozens of tax break proposals. The latest proposals would weigh heavily on the treasury of one of Latin America’s most stable economies.