News CADP defines a 25% reduction in the allowances of...

CADP defines a 25% reduction in the allowances of parliamentarians and ministers and a 10% reduction of the President of the Republic

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The Public Senior Management Council (CADP) defined after a month of work reduce by 25% the diets of parliamentarians and ministers –as reported today by La Tercera– and 10% that of the President of the Republic, that of the mayors and undersecretaries.

There were 17 sessions, of which 10 were dedicated to listening to experts, academics and civil society to reach a consensus. The reduction will take effect the following month after the resolutions regarding new remunerations are published in the Official Gazette.

“The law establishes that the reduction must be made with respect to the last remuneration received by the authorities, which, in the case of parliamentarians and ministers, was $ 9,349,853. After making the 25% reduction set by the ADP Council (four votes to one), this amount becomes $ 7,012,390, similar to the nominal value that ministers and parliamentarians received in 2010. With the reduction, the relationship between the parliamentary diet and the remuneration of state ministers was modified: decreasing their distance with the minimum wage, from 29 to 22 times and with the average remuneration of the employed, from 16 to 12 times “, the institution indicated in a statement.

It was added that “From the perspective of international comparison, the gross diets of the Chilean parliamentarians went from occupying the current second place in the OECD, with US $ 13,638 per month – after the United States -, to seventh place, with US $ 10,229, below Israel. At purchasing power parity, it went from first to third place, with US $ PPP 17,516. In Latin America it is now Colombia who will have the best-paid parliamentarians. ”

While “the new remuneration of the Ministers of State was below the average of the OECD countries -US $ 10,229 in Chile vs. the new average of US $ 12,966 in the OECD- and to US $ PPP it went from second place, after Switzerland, to ninth place, below Austria ”.

Despite the fact that this day only the temporary reduction of the parliamentarians’ allowances should be reported (until the technical body that will define the final reduction is created), That of the President and trusted personnel was also announced, for which they had 60 days from today.

“The ADP Council brought forward the additional 60 days that it had to pronounce on these charges, because it considered that all the discounts should be analyzed in a systemic way due to the interaction in the structure of the State with all the charges considered in the reform”, they indicated.

To add that “The 10% reduction to the political authorities considered that they have considerable responsibilities; which are essential charges for the operation of complex institutions; that they do not have comparative references in the private sector; that their current remuneration does not differ especially from what is paid in other parts of the world to those who perform the same functions, since the independence of the occupants of said positions should not be affected. ”

The Third informed today that the delay in reaching an agreement by the members of the organization would be explained by the provision established in the law that the remuneration of parliamentarians and ministers must be the same. This, then, in the case of the ministers, governs the Single Scale of Salaries of the public administration, where their subordinates – for example, their undersecretaries – cannot have a higher income than they do.

Finally settled a reduction of 1% in the diets of “exclusive confidence” personnel.

The agency was mandated to define the authorities’ remuneration after Last May 13, Congress dispatched after six years of processing the diet reduction project.

This new salary scale will govern until the creation of a commission of five members appointed by the President with the agreement of two thirds of the current senators., who must meet the qualities of: former Minister of Finance, former Counselor of the Central Bank, former Comptroller or Deputy Comptroller, former President of one of the chambers of the National Congress and former National Director of the Civil Service.

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