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Home > Business

Paraguayan Finance Ministry Union Demands 69% Pay Raise

KO YONG-CHUL Reporter / Updated : 2025-04-15 16:40:49
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Asunción, Paraguay – The Professional Civil Servants Union of the Ministry of Finance and Economy (Siprufomef-DNIT) recently sent a letter to the Minister of Finance and Economy, Carlos Fernández Valdovinos, demanding a 69% salary increase for the agency's civil servants.

In the letter, the union urged the Minister to implement Article 7, Clause 3 of the Fiscal Responsibility Law (Ley N° 5098/2013), which stipulates the inclusion of provisions related to civil servant salary adjustments in the 2026 National Budget Law (PGN).

The union emphasized that the Organic Law of Regional Governments (Ley N° 3668/2008) and the Law Setting the Basic Monthly Salary Standard for Public Entities (Ley N° 4493/2011) are being faithfully observed for members of public entities and governors in accordance with the same law.

Furthermore, the union invoked the principle of equality before the law enshrined in Article 47 of the Constitution, arguing that the relevant provisions of the Fiscal Responsibility Law (Ley N° 5098/2013) are not being implemented.

In addition, they expressed dissatisfaction by comparing the fact that the minimum wage in the private sector is increased according to the relevant regulations, while public sector wages are not.

Meanwhile, this union also demanded the same 69% pay raise from the current minister last year, but it was not reflected during the finalization stage of the 2025 National Budget Law bill.

It is also worth considering that former Minister of Finance, Santiago Peña, included all allowances, including civil servants' salaries, in the budget, and that current civil servants receive numerous benefits such as bonuses, health insurance, and family allowances.

From a comprehensive perspective, this demand for a large-scale wage increase by the Professional Civil Servants Union of the Ministry of Finance and Economy is based on legal grounds and concerns about the decline in real wages due to rising prices. However, careful discussion and decisions are expected, taking into account the government's financial situation and equity with other public sectors. Attention will be focused on the negotiation process and outcomes between the government and the union in the future.

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