As is usual, this July 28 the presidential speech took place, and President Dina Boluarte took the opportunity to talk about the increase in the minimum wage in Peru. For the relief of many, the president assured that the increase in the Minimum Vital Remuneration (RMV) should occur during the last quarter of 2024. She also noted that the National Council of Labor and Promotion of Employment will be convened to reach an agreement regarding this measure that is greatly anticipated by Peruvians.
What did Dina Boluarte say previously?
President Dina Boluarte announced on November 25, 2023, an increase in salary for nurses and obstetricians, as well as for higher education teachers starting from December of last year. The head of the state indicated that approximately 300 million soles will be invested to realize the announced salary increases.
“With great satisfaction, I announce that there will be an increase for the fourth tranche for nurses and obstetricians. This increase will take effect in December and will benefit 140,000 workers”, she stated during her participation in the campaign “Let’s Act NOW! Let’s Save Girls from Sexual Violence.”
Although the government has taken these measures concerning state workers, most of the population is waiting for similar measures to be announced regarding the minimum wage increase.
WHEN WILL THE SALARY INCREASE BE EVALUATED ACCORDING TO THE MINISTER OF LABOR?
The Minister of Labor and Promotion of Employment, Daniel Maurate, stated that the increase in the Minimum Vital Remuneration, or minimum wage, will be evaluated after the installation of the National Council of Labor, which brings together representatives of employers and workers’ unions.
“The increase in the Minimum Vital Remuneration (RMV) has a procedure, which is basically developed in the National Council of Labor, where the agreement and consensus must take place, because this discussion occurs within the council’s framework”, he pointed out.
“What I can announce is that we will first try to have the National Council of Labor installed, and we will convene it. Apparently, there is good willingness from the representatives of employers and workers to attend and participate in the council”, he added.
Daniel Maurate reiterated that the rise in the minimum wage must be discussed technically in the National Council of Labor so as not to adversely affect micro and small enterprises, essentially.
WHAT DID CONGRESS SAY ABOUT THE INCREASE IN THE MINIMUM WAGE?
The Congress of the Republic proposed a law aimed at modifying the Minimum Vital Remuneration in Peru. According to the indication, it would be increased to S/ 1,545, if approved, the increment would be S/ 520 soles to the current Peruvian salary (S/ 1,025).
Minister of Labor, Daniel Maurate reinforced his previous statements emphasizing that the salary increase could occur in the second half of the year, provided that the economy continues to recover as projections indicate or even better. Additionally, Maurate denied that the minimum wage would increase to S/ 1,545 as stated in the congressional proposal, since if it were to happen, it would have to be done through an agreement between workers and employers.
Finally, the head of MTPE revealed that a sharp salary increase could raise labor informality in Peru and that the proposal would need to be analyzed technically and thoroughly, not responding to political interests.
THIS IS WHAT WAS SAID BY THE MINISTRY OF ECONOMY ABOUT THE INCREASE IN THE MINIMUM WAGE
According to the Minister of Economy and Finance, José Arista, the issue of increase could be debated once economic indicators, such as GDP, improve. “It is not the time to discuss a raise in the minimum wage. We hope that the economy starts to gain momentum in this semester and in the second half, once it consolidates, we will be able to discuss the increment,” he reiterated in dialogue with RPP.
Minister of Labor and Ombudsman speak out on the minimum wage increase
Regarding the announcement of the salary increase in Peru for 2024, Minister of Labor, Daniel Maurate indicated at the beginning of 2024 that the measure is a presidential promise that was aimed to be evaluated this year, in which a more favorable scenario exists compared to the previous one (the confirmation of an economic recession that the country was going through), along with the lingering impacts of El Niño phenomenon and social protests against the current government. Furthermore, the head added that meetings have been held.
In addition to these statements, new pronouncements were made where the Ombudsman, Josué Gutierrez, stated that the evaluation of the salary increase is of vital importance in a context of inflation and loss of purchasing power where the salary becomes insufficient to cover basic expenses.
Days later, Maurate publicly reiterated on the matter coinciding with Gutierrez’s comments. Thus, the head of the Ministry of Labor stated that the salary increase must respond to the objectives of halting or reducing unemployment and labor informality in Peru, and not based on motivations with political or populist ends. Finally, he emphasized that it is necessary to overcome the recession and strengthen the Peruvian economy to announce an increase in vital remuneration.
Government makes official salary increase for health professionals
The government officially announced the increase in remuneration for health professionals, which will take effect from this December, as established by Supreme Decree No. 271-2023-EF. This comes after the sector unions adhered to an indefinite strike and stated that they would not suspend it until the aforementioned norm was published.
“In the coming days, after the publication of the 2024 budget law recently approved by the Congress of the Republic, another supreme decree will be published authorizing the disbursement of the pending salary differential for the group of health professionals”, stated the Ministry of Health through an official communication.
How much would the minimum wage increase in Peru?
The basic salary under the payroll currently is 1,025 soles, despite President Dina Boluarte announcing a change in the salary measure, she has not provided further details on the amount, only that an attempt will be made to establish a consensus among the parties involved for the benefit of the Peruvian people.
What is the current minimum wage in Peru?
According to current figures (2023), the minimum wage in the Peruvian labor market is 1,025 soles. This base salary usually deducts the corresponding amount for the AFP (Contribution of the Pension Fund Administrator), which varies in percentage according to the salary received. It is also important to take into account the details of one’s contract and labor regime to calculate the net income.
When was the last salary increase given?
The last change in the salary measure took place in May 2022, during the government of Pedro Castillo. According to what was announced during the former president’s term, decree No. 03-2022-TR was issued, which established an increase of 95 soles in the RMV (Minimum Vital Remuneration). Thus, the minimum wage rose from a base of 930 soles to 1,025 soles.