Peruvian Congress postpones supplementary budget approval, ends progressive CAS gratuity plan

The Commission of Budget and General Account of the Republic suspended debate on Bill No. 14799/2025‑PE, which seeks to authorize a supplementary credit of more than 4.160 billion soles for fiscal 2026. The debate will resume on 30 June after the Ministry of Economy and Finance evaluates proposals that include new allocations for labor benefits, infrastructure projects, regional initiatives and an emergency fund for a possible El Niño event.

The commission also removed the provision for progressive payment of bonuses and severance (CTS) for workers under the Administrative Services Contract (CAS) regime. Instead, the full gratuity will be paid in July as originally required by Law 32563. Congressman Alejandro Soto explained that the change reflects “legitimate concerns” from legislators and unions, noting “el pago de la gratificación de los CAS este año, en julio, queda al 100 % de la remuneración”. Finance Minister Rodolfo Acuña said the executive will consider further requests from the working groups.