Overview
- The reform adds two annual bonuses equal to one monthly salary each and a CTS calculated at 100% of monthly pay per year of service, payable at the end of the employment relationship.
- It also restructures the CAS regime with three contract types, caps fixed-term renewals at five years within fiscal-year limits, and sets indemnities for contracts nullified for fraud or simulation.
- The measure covers one of the state’s largest workforces, with cited counts ranging from about 348,750 to 373,233 CAS employees.
- Funding is framed as internal budget reallocations subject to a favorable MEF opinion without new Treasury demands, while MEF and the Fiscal Council estimate an annual cost near S/2.8–3.05 billion and point to constitutional limits on creating spending.
- Finance Minister Gerardo López said the government will issue a technical opinion once the text arrives, as scrutiny increases due to concurrent spending laws and the electoral calendar.