Peru establishes prison sentences for non-payment of social security contributions

On July 8, 2023, Law 31823 was enacted and entered into force, which amends Article 190 of the Criminal Code, establishing prison sentences for the crime of unlawful appropriation for the withholding and non-payment of workers’ social security contributions destined to their pension funds.

This amendment establishes prison sentences for anyone who appropriates, diverts, or improperly disposes of a worker’s pension contributions. Private sector agents risk prison sentences of between two and four years. For public sector agents, the penalty is between three and six years. In addition, the regulation establishes the person’s inability to work for the State.

Due to this new regulation, it becomes essential to have a suitable advisory to guarantee tax and legal compliance. Adequate control measures must be implemented to verify contributions’ withholding and payment to avoid criminal liabilities.

It should be recalled that this legal initiative comes to solve the debt problem of the private pension system, which as of March 2023, owed S/34,239 million between public and private employers.

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