Daniel Ortega regime increases the contribution of workers and companies to the INSS

De: La Prensa Nicaragua

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Wendy Alvarez, Mabel Calero  28/01/2019


Daniel Ortega launches almost the same reform to Social Security that implemented last April

In the middle of an economic crisis and an increase in unemployment, the Daniel Ortega regime took up almost the same Social Security reform project that it implemented last April, which caused one of the worst economic and social crises of the last ten years. According to a resolution adopted by the board of directors of the Nicaraguan Institute of Social Security (INSS), the contribution of workers will go from 6.25 percent to 7 percent; in the case of employers, from 19 to 22.5 percent, and facultative insurance will increase.

Unlike the previous reform, on this occasion the regime of Daniel Ortega ordered that the increase to the employers be all at once, instead of applying it gradually, despite the announcement of a tax reform that also increases the tax burden on [this[. The maximum quotable salary was also eliminated, which until this year was 96,841.56 córdobas per month. One of the most severe measures contained in the resolution is the change in the formula for calculating future pensions, which will mean that, from now on, new pensions will be shrinking.

This time the regime withdrew its aspiration to apply a five percent fee to pensioners.

Pensions will be devalued every year


Also the Daniel Ortega regime ordered that pensions will no longer receive the adjustment of five percent per year, as previously applied to deal with the devaluation. This, then, would allow the regime to obtain in compensation the five percent that it intended to withhold in April from the pensioners as a contribution of medical expenses.

"It comes to encourage the closure of many companies"

The vice president of Cosep, Sergio Maltez, assures that the political crisis is not solved with an economic reform. "Rather with this initiative at this precise moment where you have lost competitiveness with the fall in sales plus the slowdown in the country what comes is to encourage the closure of many companies," he said.

Maltez described the reform as "very serious", since "this advance of 3% is imposing it on a" presumptive income ", you also decapitalize the flow of companies, [eliminate] any benefit you have as an exporter, [and] we must add the new measures of the INSS here we are not only talking about unemployment, but also about the closure of companies, the population will lose the purchasing power of their monthly income ... ".

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