President Keiko Fujimori has proposed increasing the minimum vital remuneration (RMV) to S/1,300, a move that Minister of Labor Juan Sheput describes as a political definition that will now move toward formal processing. According to Sheput, the proposal is based on data from the Banco Central de Reserva del Perú, noting that an increase to S/1,300 would restore purchasing power to levels seen in 2020. While the president’s announcement sets a mandatory political line for the cabinet, Sheput stated the formal process must pass through the Consejo Nacional del Trabajo and may be implemented progressively.
SME Support and Formalization Strategy
To mitigate the impact of higher labor costs, the government plans to provide a one-time complementary bono to micro and small enterprises (mypes). The government intends for the bono to act as a “trigger” to encourage formalization by helping these businesses absorb initial labor costs.
Sheput stated that this financial support will be paired with other measures to increase competitiveness and improve tax devices. He specifically highlighted the need to combat insecurity and extortion, describing these as fixed additional costs that hinder the growth of mypes.
Economic Coordination and Technical Evaluation
The proposal has been developed through coordinated efforts between the Ministry of Labor and the Ministry of Economy and Finance (MEF), led by Minister Elmer Cuba. According to Sheput, the measure is one of several complementary actions designed to be multidisciplinary. Minister Cuba has indicated that the minimum wage is part of a continuous diagnostic evaluation based on technical indicators, including productivity, economic growth, inflation evolution, and labor market conditions.
The current proposal follows a period of political debate. During the presidential campaign, candidate Roberto Sánchez suggested raising the RMV from S/1,130 to S/1,500, a proposal Keiko Fujimori criticized as “populistat the time.
Business Concerns and Potential Risks
The announcement has sparked concern among business leaders, particularly in regional hubs like Piura. Javier Bereche, president of the Chamber of Commerce (Camco), noted that while the goal is positive, the implementation remains unclear. The measure would affect roughly 1.5 million workers, many of whom are employed by small businesses.
Business representatives have raised several specific concerns regarding the proposed support plan:
- Bono Details: There is currently no confirmed amount, duration, or clarity on whether the bono will cover secondary labor costs such as vacations, gratificaciones, AFP, EsSalud, and CTS.
- Inflationary Pressure: Bereche warned that increased purchasing power could raise the demand for goods and services, potentially driving up prices if production does not keep pace.
- Risk of Informality: There is a concern that if the state support is insufficient or too short-lived, companies with limited financial capacity may be forced to remove workers from official payrolls, inadvertently increasing informality.
Minister Sheput noted that he has heard reasonable positions from the Confederación Nacional de Instituciones Empresariales Privadas (Confiep) and the Sociedad Nacional de Industrias, stating that both organizations have shown a willingness to discuss the implementation despite their reservations.
Impact on National Holidays
Addressing concerns regarding the labor calendar, Minister Sheput confirmed that current holidays will be maintained. He stated that any future modifications would require an impact study to balance the needs of the industrial and manufacturing sectors, which require consistent production, against the gastronomic and tourism sectors, which benefit from holidays.
Keep reading
