The Legislative Assembly of El Salvador approved the Law of the National Institute of Training and Education (INCAF), simultaneously dissolving the Salvadoran Institute of Professional Formation (INSAFORP).

The new law stipulates that INCAF will receive 20% of business contributions, while the remaining 80% will be distributed between the Directorate of Integration and the general state budget. This change represents a significant modification compared to the current legislation, where INSAFORP receives the entirety of these contributions.

Raquel Santos, partner and head of the Labor and Migration Department of the firm, expressed her opinion on the proposal, highlighting that “the redistribution of funds outlined in the project could have a considerable impact on the effectiveness of professional training programs.”

Additionally, the project states that INCAF will be composed exclusively of state entities. In contrast to INSAFORP, whose Board of Directors included government representatives and those from employer and labor sectors, INCAF will adopt a different structure, focusing on professional, technical, and vocational training programs.

“The concentration of state entities in INCAF could influence the diversity of perspectives in decision-making, which must be considered to ensure equitable representation of the various involved sectors,” added Santos.

INCAF will consist of a president, appointed by the President of the Republic, and a Council whose composition differs from the current INSAFORP. The INCAF Council will be made up of representatives from the Ministries of Economy, Finance, Education, and Governance, appointed by the heads of these state portfolios, with each appointment requiring both a primary and an alternate representative.

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