A resigning director indicated that it was the Labor Minister who ordered the establishment of the salary allocations
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The Fund has been bankrupt for years, and in mid-2025 Parliament approved a bailout so that current retirees could collect their payments, since there was no money to make the payments.
Illegal salary payments
The Board approved the payment of salary items despite the fact that the law prohibits it. These payments were voted on January 16 with 4 votes in favor and 2 against.
The Fund's Legal Division warned that the measure presents a "clear indication of illegality," since the law establishes that these positions must be honorary.
Resignation of delegates
On January 20 the two representatives of the Executive Branch on the Board submitted their resignation after the controversy caused by their vote in favor of the measure.
The Frente Amplio government accepted these resignations immediately. What observers interpret is that in reality they were fired from the Board by the government itself.
Carta de renuncia
The decision was strongly criticized by legislators from opposition parties, and by the members' collective, given that the Fund is going through a very critical financial situation, which has forced an increase in professionals' contributions in this same year, 2026.
In the face of widespread rejection, the implementation of the monetary payment was put on hold while its formal annulment is evaluated.
Castillo is targeted
One of the delegates of the Executive Branch, María Noel Sanguinetti, pointed to Labor Minister Juan Castillo, from the Communist Party, as the person responsible for the Fund's directors receiving the monthly payment of $131,000.
In her resignation letter addressed to Castillo himself, dated January 16, Sanguinetti holds Minister Castillo responsible as the one who made the decision that, in the Professionals' Fund, the directors must receive a monetary payment, even though the payment is expressly prohibited by law.
Castillo and his Party boast of being austere and of taking care of public resources.
Caja de Profesionales
However, he does exactly the opposite. Just like his fellow party member Óscar Andrade, who went at least 10 years without paying taxes on his chalet in the San Luis resort in Canelones, the Labor Minister orders the payment of salary items in a pension fund that is totally bankrupt.
So far, Juan Castillo hasn't wanted to give any public explanations for his decision.
