285,000 civil servants’ annuities frozen for 2 years.

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President Carlos Alvarado today signed the law that allows the elimination of new annuities for two years to 285,000 officials of the Central Government and autonomous institutions.

This project was presented as an action to reduce spending and improve State finances, since approximately ¢ 101.1 billion (0.28% of GDP) will be saved, of which ¢ 66 billion correspond to the Central Government and ¢ 35.1 billion to the autonomous entities.

The signing was led by President Alvarado, Minister María del Pilar Garrido Gonzalo, Minister of National Planning and Economic Policy (MIDEPLAN) and coordinator of the Government’s Economic Council, and the Minister of Finance, Elián Villegas.

At the event, which took place in the Presidential House, Alvarado thanked the deputies who approved the project for their support and indicated that this law is one more step in the Executive Power’s commitment to reducing public spending.

“The annuities project will suspend the payment for the incremental amount of the annuities, corresponding to the periods 2020-2021 and 2021-2022, but it does not lower the salary of public servants, its spirit is to reduce the expense in salaries of the coming years, contributing to the sustainability of public finances and the recovery of Covid-19 ”, explained Minister Garrido.

Although the payment of annuities is linked to the results of the performance evaluation, the latter will be carried out in both periods and will be accounted for for reference purposes of the performance of public servants, determination of the years of service and the calculation of the payment of unemployment.

The institutions of the Central Administration will not budget the resources of the new annuities for 2021 and 2022 and will make the pertinent adjustments, in order to carry out the corresponding budget reduction.

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