2003News

Social Security postponed for one month

The government, along with employers and workers representatives, has decided to postpone the new social security contributions scheme until 1 June. This decision follows disagreements over Article 165 of Social Security Law 87-01, which was originally scheduled to come into effect today. The private sector in particular is concerned about this clause, which they believe would mean they would be charged twice for unemployment benefits in some circumstances. The decision to delay was made during a three-hour meeting yesterday between the three sectors, moderated by Monsignor Agripino N??ez Collado. Two committees were set up to try to resolve the differences during the next 30 days. Elena Viyella de Paliza, president of the Council of Private Business (CONEP), the country?s largest private sector organization, said that most important was that the law be practicable and sustainable. She expressed concern that social security contributions may place heavy financial burdens on employers, and that the law needs further clarification in certain areas.