IPS faces massive debt from Paraguayan state and private sector

The Paraguayan Social Security Institute (IPS) faces a massive debt deficit. According to the Comptroller General of the Republic, the Paraguayan state owes the IPS approximately G. 5.04 trillion (over USD 1.75 billion) for mandatory contributions to the Common Pension and Retirement Fund. This debt has accumulated since 1944, with the state having transferred only about 16.1% of the total required amount, primarily during the Covid-19 pandemic.

In addition to the state's debt, there are significant employer-related debts. Approximately G. 5.42 trillion is owed in employer contributions, with G. 1.92 trillion specifically attributed to the Common Pension and Retirement Fund. Furthermore, the Health Fund is owed roughly G. 3.5 trillion by the employer sector. The Comptroller General noted a lack of concrete progress in recovering these balances or effective monitoring by the Retirement Administration Directorate.