Labor Newsletter : Pension Reform

On 26 March 2025, Law N°21.735 was published in the Official Gazette, which ‘creates a mixed pension system and a social insurance in the contributory pillar, improves the universal guaranteed pension and establishes benefits and regulatory modifications’.

The law establishes a total employer contribution of 8.5% of the worker's taxable remuneration. This contribution will be implemented gradually, in principle, over a period of 9 years, with the new contribution taking effect from August 2025.