The Congress of the Republic of Peru is meeting in a session of the Permanent Commission to finalize a supplemental credit law that includes a mechanism for paying gratifications to workers under the CAS (Administrative Service Contract) regime. This legislative effort follows the March enactment of Law 32563, which granted CAS employees benefits similar to those in the private sector, including gratifications for Fiestas Patrias and Christmas, as well as Compensation for Time of Service (CTS). The debate, which resumed at 9:00 p.m. on July 9, seeks a consensus on how to implement these payments after previous government proposals for a gradual rollout failed to gain legislative support.
Legislative Debate on CAS Gratification Implementation
Alejandro Soto Reyes, president of the Budget Commission, stated that the commission is ratifying a proposal to ensure no CAS worker is left without a gratification. The ongoing discussions aim to establish a formula for implementation that satisfies both the legal requirements and the practical constraints of the state budget. This follows the rejection of a previous Ministry of Economy and Finance (MEF) proposal that suggested a multi-year, progressive payment scale, starting at 10% in 2026 and reaching full 100% payment by 2030.
Did You Know? Before the enactment of Law 32563 in March, CAS workers typically received a S/300 aguinaldo for Fiestas Patrias, but they were removed from this benefit in a recent supreme decree issued by the MEF following the new law’s passage.
Stakes for Workers and Public Entities
The delay in defining a payment formula has left many workers in uncertainty regarding their Fiestas Patrias bonus. While some congressional members, such as Américo Gonza of Peru Libre, have advocated for the immediate application of the benefits as outlined in the law, the executive branch has voiced concerns regarding fiscal responsibility. According to reports from the Sindicato de Trabajadores CAS del Ministerio de Educación, there is significant concern that the lack of a clear mandate could result in employees receiving no payment at all this July.
Expert Insight: The situation reflects a fundamental tension between legislative mandates for expanded social benefits and the executive branch’s fiscal oversight. Because over 15 public entities have reportedly confirmed they possess the necessary funds to pay these benefits but remain stalled pending MEF authorization, the impasse is not merely about funding availability, but about the legal mechanism required to authorize the expenditure.
Potential Outcomes for the CAS Regime
As the Permanent Commission continues its work, the outcome remains contingent on the final language of the supplemental credit law. If the Congress fails to reach a consensus on a formula that the MEF accepts, affected workers may see their benefits postponed indefinitely. The current administration and future leadership face pressure to resolve the disparity between the expectations created by Law 32563 and the administrative reality of implementing these payments without further conflict.
Frequently Asked Questions
What does Law 32563 provide for CAS workers?
The law grants CAS workers benefits similar to the private sector, specifically gratifications for Fiestas Patrias and Christmas, plus CTS calculated at 100% of their monthly salary per year of service.
Why is there a delay in these payments?
The MEF previously proposed a progressive payment schedule that the Congress rejected. Currently, there is no agreed-upon formula to authorize the payments, and the MEF has not provided the necessary favorable opinions to entities that have requested budget changes to cover the costs.
What is the current status of the Fiestas Patrias bonus?
Because CAS workers were removed from the traditional S/300 aguinaldo via a recent supreme decree, they are currently reliant on the new gratification law to receive a holiday payment. If no formula is approved, these workers risk receiving neither the old aguinaldo nor the new gratification.
Will the upcoming legislative decision provide a permanent solution for these workers, or will the debate over fiscal responsibility continue into the next administration?
