Soon the minimum wage. he Minister of Labor and Employment PromotionDaniel Maurate, in an interview with RPPIt is revealed that the following week, which begins on Monday, December 16, the minimum wage increase.
“The president is ready to make the announcement, probably next week. I can say that we will be very responsible,” Maurate said.
Therefore, as recalled, in his Message to the Nation for July 28, 2024, In Buluarte He noted that this increase should be in place in the last quarter of this year. So, a few weeks before the end of the year, Peruvian workers are waiting for the new amount to be approved, the first since May 2022, more than two years ago.
As an emphasis on Maurate,the president previously said that the announcement of the increase in the critical minimum reward. “The entire procedure has been strictly complied with in the National Labor Council,” says the Minister of Labour, but it must be said that boluarte intended for this increase to happen based on a consensus between workers and employers, which was not eventually happened. was achieved.
“The President met in the palace with the representatives of the employers and the workers, so we already have all the input.We already have all the parts. The President is ready to make the announcement, probably next week,” says the head of the MTPE.
However, according to maurate, the Executive will be “very responsible.” “That is what we have discussed with the President. A lot of responsibility with this. Because we know it’s true that inflation is a problem, workers need raises, because they haven’t had one in a long time. But if we don’t do it responsibly, it can mainly affect small and micro-entrepreneurs who are struggling to formalize themselves,” he clarifies.
The countdown to the maximum deadline to approve the minimum wage. President Dina Boluarte herself specified when the RMV should rise. – Composite Credit Infobae/Infobae/Paula Díaz/PresidencyLikewise,the Minister of Labor reveals that “large and medium-sized companies are already paying salaries above the minimum wage”,in response to the possible rejection of the trade unions. “it should also be noted that there is some inaccurate data among the micro-entrepreneurs, who are sometimes paying the labor cost of the joint regime, which is over 50%, when they are responsible for 5.6%. They do not have to pay the labor cost of the joint labor regime, they have a special regime, 5.6%, for wineries, hairdressers, restaurants and many others,” he said.
Infobae Peru having followed all the movements in the discussion on the minimum wage in the National Labor Council, and reported at the time about the breakdown in the discussion, after the representatives of the workers indicated that the officials supported the Ministry of Labor in the CNT. in that they negotiated for an increase.it meant one of the S/105.
Therefore, the new minimum wage would be set at S/1,130, which would be configured as a 10.24% increase compared to the current S/1,025. as you know,this is how the minimum wage has increased in recent years:
- 2000: On March 10,the RMV rose to S/410,18.8%, during the government of Alberto Fujimori
- 2003: On September 15 it rose 12.2% to S/460 during the mandate of Alejandro Toledo
- 2006: On January 1 it increased to S/500 (8.7%), also during the Toledo mandate
- 2007: On 1 October this increased to S/530 (6.0%) with Alan García
- 2008: On 1 January there was another increase to S/550 (3.7%) in the same government
- 2010: Dec 1 rose to S/580 (5.4%)
- 2011: February 1 was the last increase to S/600 (3.4%) by Alan García’s government
- 2011: On 14 August it rose to S/675 (12.5%) with Ollanta humala
- 2012: On 1 June it rose to S/750 (11.1%)
- 2016: On May 1 it increased to S/850 (13.3%), the last increase by the Humala government
- 2018: On April 1 it rose to S/930 (9.4%) with Pedro Pablo Kuckzynski
- 2022: The last increase was May 1, to S/1,025 (10.2%) in the government of Pedro Castillo
What are the potential impacts of the minimum wage increase on small businesses in Peru?
Interview between Time.news Editor and Labor Expert
Time.news Editor: Welcome too Time.news! Today, we have the pleasure of speaking with Dr. Elena Morales, a labor economics expert, to discuss the anticipated increase in the minimum wage in Peru. Dr. morales,thank you for joining us!
Dr. Elena Morales: Thank you for having me! it’s a crucial topic, especially given the current economic climate.
Editor: The Peruvian minister of Labor, Daniel maurate, recently announced that a minimum wage increase will be revealed next week. This is the first increase as May 2022. Why is this announcement meaningful?
Dr. Morales: It’s quite significant for several reasons. First and foremost, the increase comes over two years after the last change, so many workers have felt the pressure of inflation without any wage adjustment. A new minimum wage can provide crucial financial relief, especially for employees in micro and small businesses, which have been particularly hard-hit.
Editor: absolutely, and Minister Maurate mentioned the need for a consensus between workers and employers, which unfortunately seems to have not been fully realized. How crucial is this consensus for the sustainability of such wage increases?
Dr. morales: Consensus is vital. It not only fosters a collaborative environment but also ensures that the wage increase is sustainable for businesses. If employers feel overwhelmed by sudden increases, it might backfire—potentially leading to layoffs or reduced hiring. A balanced approach encourages fairness and economic stability.
Editor: The Minister emphasized financial responsibility while preparing for this announcement, particularly considering inflation pressures. what factors should the government consider to ensure that this wage hike does not exacerbate inflation?
Dr. Morales: That’s a good point. The government should consider the current inflation rate and its impact on purchasing power. Additionally,they should evaluate the broader economic conditions and productivity levels. Increasing wages without corresponding productivity can lead to inflationary pressures as businesses might increase prices to maintain profit margins.
Editor: In terms of timing, the announcement is expected before the end of the year. how do you think this timing affects both employees and employers?
dr. Morales: Timing is critical,especially as we approach the holiday season when expenses typically rise. for employees, receiving a wage increase now could substantially aid in managing their holiday expenses. Conversely, businesses need to plan ahead to accommodate increased labor costs. The government should provide clear signals early enough for businesses to adjust their budgets accordingly.
Editor: There’s also the political angle to consider. With the current administration, how does this wage increase play into the broader narrative of their economic policy?
Dr.Morales: Indeed, this announcement can serve as a key indicator of the administration’s commitment to addressing economic inequalities. However, it can also face scrutiny. If not managed well,it might be perceived as a political maneuver rather than a genuine effort to improve workers’ livelihoods. It’s essential for the government to communicate clearly about the rationale behind the increase and engage with both sides—workers and employers—to back up their decision.
Editor: Thank you for your insights, Dr. Morales.Before we conclude,what advice woudl you give to both employees and employers in light of this upcoming change?
Dr. Morales: For employees, I would advise them to stay informed about the details of the announcement and advocate for their rights during this transition. For employers, it’s crucial to prepare strategically, ensuring that they can sustain employee wage increases without compromising their operational capabilities. Communication and planning are key.
Editor: Wise words, indeed! Thank you, dr. Morales, for sharing your expertise with us today. We look forward to seeing how this situation unfolds in Peru.
Dr. Morales: Thank you for having me! It’s a pivotal moment for Peru, and I hope for positive outcomes for all involved.