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Mexico ends Presidential Pensions and cuts pay for public servants

Mexico has tightened laws dictating that public servants can’t earn more than the president and eliminated so-called golden parachutes for elected officials.

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Lawmakers decreed via the official gazette Monday that there will be some exceptions for salaries of employees with high levels of specialization and technical expertise, but even those salaries will be capped at 50 percent more than the president’s salary.

President-elect Andres Manuel Lopez Obrador takes office Dec. 1 and has said he will pay himself 108,000 pesos ($5,400) a month. This implies that no public servant will be able to earn more than 162,000 pesos a month.

The decree also states that elected officials will not be entitled to additional compensation after their terms of service, eliminating presidential pensions.