The Labor Commission of the Republic’s Congress has officially declared the implementation of unemployment insurance a matter of public interest, and necessity. The measure passed with 12 votes in favor, zero against, and two abstentions.
This legislative step aims to establish a social protection mechanism against involuntary unemployment. The objective is to strengthen social security, promote decent work, and improve the employability of workers across the nation.
Inter-Institutional Coordination
The directive identifies several key entities responsible for the process. These include the Ministry of Labor and Employment Promotion (MTPE), the Ministry of Economy and Finance (MEF), and the Social Health Insurance (EsSalud), alongside other competent public entities.
If the proposal becomes law, these organizations would be tasked with the necessary technical evaluations, inter-institutional coordination, and management required for the progressive design and implementation of the insurance.
The Labor Commission serves as the second reviewer for this initiative, following the initial review by the Economy Commission.
From Direct Creation to Declaratory Formula
While the approved text is declaratory, the initial project sought the immediate creation of the insurance. However, during the debate, the commission noted that immediate application faced significant limitations.
Specifically, there is a lack of official actuarial studies to determine financial sustainability and a need for better articulation with existing labor systems and protection mechanisms. The commission warned that creating the insurance without a prior design from the Executive Branch could generate institutional and fiscal risks.
Constitutional and Financial Hurdles
The MTPE previously indicated that the original plan was not viable. One primary concern is that such insurance could not coexist with the Compensation for Time of Service (CTS) because both serve similar purposes; creating the insurance might require the repeal of the CTS.
the MTPE observed that proposing non-contributory financing funded by the State would violate Article 79 of the Constitution, which prohibits Congress from increasing public spending.
Despite these hurdles, the MTPE noted that the concept is aligned with Article 10 of the Political Constitution of Peru, which recognizes the progressive right to social security by incorporating unemployment as a protected contingency.
Potential Next Steps
Depending on the legislative outcome, the government may begin a phase of technical evaluations to determine the financial viability of the system. This could involve the development of the missing actuarial studies mentioned by the commission.
There is a possibility that the Executive Branch and the identified ministries will need to coordinate a new design that avoids violating Article 79 of the Constitution or resolves the overlap with the CTS.
Frequently Asked Questions
What was the result of the vote in the Labor Commission?
The commission approved the declaration of interest and public necessity with 12 votes in favor, 0 against, and 2 abstentions.
Which government bodies are responsible for the design and implementation?
The Ministry of Labor and Employment Promotion (MTPE), the Ministry of Economy and Finance (MEF), and the Social Health Insurance (EsSalud) are the primary entities named.
Why was the original plan for direct creation of the insurance rejected?
The commission cited a lack of official actuarial studies, potential fiscal and institutional risks, and the need for coordination with the Executive Branch. The MTPE warned it could conflict with the CTS and violate Article 79 of the Constitution regarding public spending.
Do you believe a national unemployment insurance is a necessary evolution for social security?
