Minimum Wage 2025: The Government is proposing a 10% increase
The Minister of Labor and Social Security, Miriam Roquel, reported that the proposal presented by the Government for the minimum wage for 2025 was a 10% increase. According to official sources, the official indicated that no agreement had been reached with the other sectors, but that it is a decision that the President of the Republic, Bernardo Arévalo, must make.
Perspective Writing
The proposal was submitted to the National Salary Commission (CNS) and represents an increase of more than 300 quetzales per month.
The Minister reported that the dialogue meetings of this commission started in March and that they have already been concluded without agreements between the parties. The proposals presented by the other sectors range from an increase to the minimum wage from 1%, 3%, 77% to 103% excluding the Government’s proposal.
The opinions of the Banguat and the IGSS will be received on November 13 when the file returns to the Ministry of Labour. After that, this is sent to the Attorney General’s Office (AGO) for an opinion and then it returns to the Miontrab. The president must analyze these proposals in the coming months.
The Minister emphasized that the recommendation of the government sector came after a technical analysis to increase the minimum wage by 10% for all economic areas, that is, for the Guatemalan department and for the rest of the country.
It was reported that technical studies were carried out in relation to the worker’s need to find the standard of balance based on article 103 of the Labor Code which seeks the welfare of the worker for his well-being and his family.
According to the official, the inflation target, the average forecast of economic growth, as well as the gradual recovery of the purchasing power of the minimum wage were analysed.
The minimum wages in force in 2024 for agricultural and non-agricultural activities are between Q102 and Q110 in the daily and monthly wage range between R3,124 and R3,384.
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Interview Transcript: Time.news Editor with Economic Expert Marta González
Time.news Editor: Good afternoon, Marta, and thank you for joining us today to discuss the recent proposal for a minimum wage increase in 2025. The government has suggested a 10% rise, amounting to over 300 quetzales per month. What are your initial thoughts on this proposal?
Marta González: Thank you for having me. I think it’s a significant step towards addressing the cost of living for many workers in our economy. A 10% increase reflects the government’s recognition of the need to adjust wages in line with inflation and rising living costs. However, it’s essential to consider the context and implications of such a decision.
Time.news Editor: Absolutely. The Minister of Labor and Social Security, Miriam Roquel, mentioned that discussions haven’t led to an agreement yet. Why do you think negotiations have stalled among the various sectors involved?
Marta González: That’s a complex issue. There are multiple stakeholders, including businesses, labor unions, and government representatives, each with their own priorities and concerns. On one side, businesses might argue that a significant wage increase could impact their operational costs and competitiveness. On the other hand, labor groups will argue for the necessity of a living wage to ensure that workers can meet their basic needs. The lack of agreement indicates the challenging balancing act the National Salary Commission faces.
Time.news Editor: Given that the dialogue meetings concluded without consensus, what do you think the next steps should be for the government and the involved parties?
Marta González: I believe the government needs to facilitate a renewed dialogue. It might require negotiating with more transparency and perhaps even compromise from both sides. Implementing a phased approach to the wage increase might also be a way to bridge the gap – perhaps starting with a smaller increase in 2025 and tying future adjustments to economic indicators like inflation and company performance.
Time.news Editor: That’s an interesting perspective. If this 10% increase is implemented, what impact do you believe it will have on the economy and the workforce in the long term?
Marta González: If done correctly, a wage increase could reduce poverty levels and improve the overall quality of life for workers. This, in turn, would likely increase consumer spending, positively impacting local businesses. However, if businesses struggle with increased labor costs and reduce hiring or even lay off workers, it could have the opposite effect. The success of this policy will heavily depend on how the government manages the broader economic environment, including support for small and medium enterprises.
Time.news Editor: It sounds like a delicate balance must be maintained. Lastly, what advice do you have for workers who might be anxious about the outcome of these discussions?
Marta González: Workers should stay informed about the negotiations and advocate for their interests. Joining forces within labor unions can amplify their voices. It’s essential for them to push for fair treatment while also understanding the challenges businesses face. A cooperative approach—encouraging businesses to thrive while fighting for their rights—can lead to more sustainable outcomes for everyone involved.
Time.news Editor: Thank you so much for your insights, Marta. This is a crucial topic, and your analysis helps shed light on the complexities of minimum wage discussions in our economy.
Marta González: Thank you for having me. I look forward to seeing how these negotiations unfold and the impact they will have on our society.