Public Employment Framework Law
On September 8, the Ministry of National Planning and Economic Policy (MIDEPLAN) published, in Edition No. 173 of the Official Gazette 165, the following with respect to the regulation and implementation of the Public Employment Framework Law (LMEP, by its acronym in Spanish):
• Ministerial Directive No. 002-2023-PLAN, concerning the publication of the new global salary scales that, pursuant to Article 3 thereof, apply to institutions within the scope of the Public Employment Framework Law (LMEP), a scope that includes the Central Bank and its decentralized bodies.
• Executive Decree No. 44199-MIDEPLAN, Article 2 of which establishes the addition of Transitional Provision VII to Executive Decree No. 43952-PLAN, dated February 28, 2023, entitled “Regulations to the Public Employment Framework Law."
In light of the above, it is important to note that:
- The salaries of current staff members will not be modified.
- The salary scale published by MIDEPLAN includes new entry-level salaries for occupational categories, such as General Services Assistant, Institutional Services Assistant 1 and 2, and Institutional Services Technician 1 and 2.
- The rules established in the LMEP and its related regulations, with respect to salary matters, will apply only to newly hired personnel and to those employees who successfully compete for positions within the categories referenced in point 2 above.
- The new salaries published in the aforementioned Directive will not have a retroactive effect. In all cases, the applicable hiring salary will be the one in force at the time the corresponding appointment resolution is issued.
- Currently, positions associated with “professional posts" are not covered by the salary scale published by MIDEPLAN, as they remain under definition by the Civil Service Directorate, which is responsible for the corresponding process. Accordingly, for recruitment to such positions (professional in Banking Management 1 and higher), the global salary scale currently in effect at the BCCR will continue to apply until a new scale defined by MIDEPLAN enters into force, as established in the Transitional Provision III of the Regulations to the LMEP.
- The Central Bank is requesting an extension from MIDEPLAN, as provided under Transitional Provision VII of Executive Decree No. 44199, in order to coordinate the definition and entry into force of the global salary scale applicable to professional positions within the institution.
- With regards to seniority increments and salary adjustments, the new salary scale applicable to the positions aligned with the occupational categories mentioned in point 2 will determine the maximum amount of such increases for employees currently under the Bank's global salary scale or the basic salary scale with additional benefits, in accordance with the opinion issued by the Civil Service Directorate in response to a consultation submitted by the BCCR.
- Additionally, the Bank has submitted a series of inquiries to MIDEPLAN in order to clarify key aspects relating to the implementation and operationalization of the regulatory framework above.
- Article 6 of the LMEP establishes that the governance of the General Public Employment System rests with the Ministry of National Planning and Economic Policy (MIDEPLAN). It is therefore that entity which is authorized to matters related to the implementation of the Law and its regulations, as the Bank lacks jurisdiction in this area, except for the authority to submit the corresponding consultations.
- The Office of the Attorney General of the Republic may analyze consultations on the LMEP only where a prior opinion from MIDEPLAN exists.
We will provide more information as responses to the consultations submitted to MIDEPLAN are received or as that entity issues publications related to the LMEP.
