ASUNCION, Paraguay – The Paraguayan Ministry of Economy and Finance (MEF) announced that May public sector salary payments are progressing smoothly and on schedule. Notably, over 50,000 administrative civil servants and healthcare professionals began receiving their May salaries on Tuesday, May 27. This adherence to the MEF's payment schedule underscores the government's commitment to the stable operation of the public sector.
Large-Scale Salary Disbursement Begins, Healthcare Sector Largest Beneficiary
According to the MEF's announcement, salary payments for May commenced on Tuesday, May 27, covering all administrative civil servants across various state institutions, as well as healthcare personnel. This includes doctors, nurses, health technicians, and support staff.
Data from the General Directorate of Public Treasury, under the Vice Ministry of Financial Administration, indicates that approximately 54,857 public servant positions within the central administration are eligible for this salary disbursement. Nearly 60% of these, or 32,439 individuals, are affiliated with the Ministry of Public Health, highlighting the significant role the healthcare sector plays in Paraguay's public services. This substantial human resource investment in maintaining the nation's public health system reflects the government's continued support for healthcare professionals, whose importance has been further emphasized since the pandemic.
Phased Payment Schedule and Future Plans
The May salary payments are being disbursed in phases over several days:
Wednesday, May 28: Payments will be made to civil servants belonging to the Public Forces (Fuerzas Públicas), the Judiciary (Poder Judicial), and departmental governments (gobernaciones).
Thursday, May 29: Employees of the Ministry of Education and Sciences (MEC) and national universities will receive their salaries. Timely payment for these individuals is crucial for the stability of Paraguay's education system, a key driver of national development.
Friday, May 30: The remaining payments related to personal services will be completed, concluding the May salary disbursement.
The MEF emphasized that this payment schedule is contingent upon each government agency and entity (OEE) submitting Requests for Resource Transfers (STR: Solicitudes de Transferencias de Recursos) in a timely and accurate format. This procedural requirement aims to enhance the transparency and efficiency of public financial management.
Social Welfare Benefits and Pension Payments Status
Prior to the May salary disbursements, social welfare benefits began being paid out last Friday. These include benefits under the Elderly Support Program (Adultos Mayores), as well as payments to war veterans and pensioners. This demonstrates the ongoing efforts to strengthen the social safety net for vulnerable populations.
On Monday, payments to beneficiaries of the Fiscal Fund pension (jubilados de la Caja Fiscal) were processed, but only for those who had completed the mandatory digital census. According to the MEF, approximately 5,000 beneficiaries have not yet completed the digital census, resulting in a temporary block on their payment cards. Their payments will be withheld until the procedure is finalized. This measure is intended to increase the transparency of the pension system and prevent fraudulent claims by ensuring the accuracy of beneficiary information. The digital census, which ran until May 3, 2025, aimed to update key beneficiary details such as address, contact information, email, country, and city of residence.
Pension System's Fiscal Deficit and New Beneficiary Inclusion
Meanwhile, the fiscal deficit of the Public Sector Pension and Retirement System (déficit del Sistema de Pensiones y Jubilaciones) continues to grow. This trend is similar to what is seen globally, where aging populations and declining birth rates threaten the financial health of pension systems. Despite this, the pension fund continues to incorporate new beneficiaries.
This month, a total of 535 individuals were included in the pension beneficiary list for the first time. Of these, 450 are new retirees, and 62 are pension recipients. There were also four cases of re-inclusion. This highlights the ongoing pressure of increasing pension expenditures and suggests the Paraguayan government may need to undertake fiscal reforms to ensure the sustainability of its pension system in the future. As of 2019, Paraguay's Fiscal Fund reportedly carried a debt of approximately USD 11.48 billion, equivalent to about 28.5% of its GDP, with deficits particularly pronounced in the teacher, police, and military pension sectors. This represents a significant burden on public finances, and calls for structural reforms to address it.
This situation illustrates the complex challenge facing the Paraguayan government: maintaining fiscal soundness while simultaneously improving the quality of public services and ensuring the stable provision of social welfare benefits. Sustained economic growth and efficient financial management will be crucial in overcoming these challenges.
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