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Mexico plans to raise public sector pensions, president says

Published 07/23/2020, 10:28 AM
Updated 07/23/2020, 10:30 AM
© Reuters. FILE PHOTO: Mexico's President Obrador holds a news conference in Mexico City

MEXICO CITY (Reuters) - Mexico will raise pensions of federal government workers, President Andres Manuel Lopez Obrador said on Thursday, a day after his government announced plans to boost pensions of average workers in the private sector by about 40%.

"We're also going to present a reform ... for the benefit of workers employed by the state," Lopez Obrador told reporters at a regular government news conference.

The public sector reform would be applied to federal government workers, and be put forward in due course once Mexico had begun to emerge from the economic crisis stemming from the coronavirus pandemic, the president said.

© Reuters. FILE PHOTO: Mexico's President Obrador holds a news conference in Mexico City

Under the private sector pension plan agreed between the government and business representatives, total contributions will rise to 15% of salary from 6.5% over eight years, and employer contributions to 13.87% from 5.15%.

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