Peru’s President Dina Boluarte Confirms Minimum Wage Increase Will Take Effect by End of 2024

The increase in the minimum wage has been confirmed for this year, as announced by President Dina Boluarte in her Message to the Nation on July 28. – Credit Infobae/Edwin Montesinos/Infobae/Paula Díaz/Presidency composition

After announcing in her previous Message to the Nation that she expected the increase in the minimum vital wage to be implemented “soon,” a year ago, the President of Peru, Dina Boluarte, in her message on July 28, confirmed that this increase in the Minimum Vital Remuneration should occur before the end of 2024.

“I announce that we have called the National Council for Labor and Employment Promotion (CNT) to reach a consensus on the increase in the Minimum Vital Remuneration, which should be implemented by the last quarter of this year at the latest,” Boluarte confirmed.

As is known, it had already been reported that the head of the Ministry of Labor and Employment Promotion (MTPE), Daniel Maurate, had stated that before this July 28, representatives of employers and workers would be convened for the National Labor Council, but that the installation would take place later. “Apparently, there is good willingness from the representatives of employers and workers to attend and participate in the council. (…) We are also putting on the agenda the strengthening of the council’s institutionalization,” he stated at the time.

There is still a need to establish the foundations for discussing the increase in the minimum wage with workers, the business sector, and the Ministry of Labor, and the forum will be the National Labor Council. – Credit Infobae/Edwin Montesinos/Andina composition

The President dedicated some words in her Message to the Nation to confirm the increase in the minimum wage to be implemented by, at the latest, the last quarter of the year, from October to December 2024. Thus, this increase must occur within this timeframe, the amount of which is still unknown.

“Today, after the economic recession, I can assure the Peruvian people that we are in a clear recovery, and this must benefit and be felt by all Peruvians. In this regard, I announce that we have called the National Council for Labor and Employment Promotion to reach a consensus on the increase in the Minimum Vital Remuneration, which should be implemented by the last quarter of this year at the latest,” announced Boluarte.

As noted, the president also stated that the country is in recovery after the 2023 recession. This would be the justification for increasing the minimum vital remuneration (RMV). Furthermore, this announcement was anticipated given the statements from the head of the Ministry of Economy and Finance (MEF), José Arista. “[The Minister of Labor] tells me that he is calling for some meetings in the coming weeks or months to discuss this issue. But it is a topic we need to address. It’s definitely not ruled out,” he noted at the time.

President Dina Boluarte announced this increase in her message to the Nation. – Credit Andina

Although the exact amount to which the RMV will be raised is still unknown, Congress has presented two bills to propose that a new minimum wage amount be declared of national interest.

• The first bill, from congressman Luis Gustavo Cordero Jon Tay, proposes that the new minimum wage be at least S/1,500.
• The second bill presented by Waldemar Cerrón implies that this new amount be S/1,545.

Additionally, the deputy secretary-general of the CGTP, Gustavo Minaya Goñy, in interviews with various media outlets, such as Canal N and Exitosa, suggested that the minimum vital remuneration should cover the basic family basket, which he indicated would amount to S/2,100, more than half of the current wage of S/1,025. This would be the amount that the representatives of workers in Peru would seek. It should be clarified, however, that, according to recent data from the National Institute of Statistics and Informatics (INEI), a basic consumption family basket for a family of four amounts to S/1,784 (S/446 per person). For five people, it would indeed be closer to the indicated amount of S/2,230.

CGTP demands, in addition to the increase in the RMV, that pensions be raised and also show opposition to the government of Dina Boluarte in the regions. – Credit Infobae/Edwin Montesinos/Infobae/Paula Díaz/El Peruano composition

However, Daniel Maurate reiterated that the increase in the minimum wage must be discussed technically in the National Labor Council to avoid affecting micro and small enterprises. He pointed out that he does not believe the amounts proposed by Congress would be chosen. “I don’t think it will go up to that amount (…) We cannot make an irresponsible increase; we have to ensure that the economy continues to grow,” he previously stated.

“The increase in the minimum vital remuneration has a process, and that process, fundamentally, is in the National Labor Council. Therefore, this agreement, this consensus, this discussion, must take place in the National Labor Council,” the minister asserted at the time.

Thus, the new amount will be agreed upon in the CNT after Boluarte’s announcement. But this, various authorities have indicated, should be addressed technically.

As is known, Dina Boluarte has also announced other economic measures that will affect citizens like:

• A S/100 increase, to S/350, in Pensión 65: “After more than 12 years, we have decided to increase the bimonthly financial subsidy received by our senior citizens from the Pensión 65 program of the Ministry of Development and Social Inclusion by an additional S/100, (…) benefiting more than 824,000 elderly people,” announced the President.
• Evaluation of increasing the pensions of the ONP: “I announce that I will instruct the Office of Normalization of Pension (ONP) to evaluate the increase of pensions for our retirees, who, despite having dedicated their work and effort to the country, are the ones who earn the least and deserve recognition from the State for a more dignified life,” Boluarte revealed.
• A food grant for 2025 has been announced: “For the year 2025, we have decided to implement a temporary and progressive intervention that will provide a bimonthly monetary transfer to urban households in extreme poverty to contribute to their food basket,” Boluarte revealed.