An increase in the minimum wage in Peru: two conditions of the Ministry of Economy to raise the RMV in 2024

The current minimum wage in Peru is 1,025 feet. Photo: Andina

The last time the minimum wage in Peru was raised was in May 2022, from S/930 to S/1,025 during the former president's administration. Pedro Castillo.

This 2024, it is not possible Minimum Vital Wage (RMV) According to because of the increase suffer Chairman of the Ministry of Economy and Finance, Alex Contreras, Amid an unfavorable economic landscape, two key conditions are needed to achieve a wage hike.

Minister Contreras: “There can be no adjustment to the minimum living wage if there is growth” (Channel N)

“For RMV, there should be a consensus and there cannot be any changes in this variable without growth. As this year will be a year of recovery, when the economy starts to grow again, if there is strong news, we believe that through consensus, a solution can be reached. Hopefully,” he said. Press Release on Economic Recovery Measures for Mibs

He said that these two elements like the current state of the economy and the loss of purchasing power of salaries should be considered. The National Labor Council (CNT), an organization that brings together business and labor representatives, In a growing economy.

“With strong growth, sales, income and efficiency of companies improve and employment is created. You have to be careful to make decisions in the right economic moments,” said Contreras Miranda.

to him MEFThis 2024 will be the year of economic recovery, after 2023 recorded a contraction in GDP, according to estimates. Central Reserve Bank, -0.5% drop. Both the MEF and BCR projects that the economy will grow by 3% in this year's estimates.

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Daniel Maurate, President Ministry of Labor and Employment Development The only obstacle to an increase in RMV is the fall in GDP.

“As I have already said, the minimum wage is the President's commitment and we are continuing to look at the possibilities. If we didn't make this increase last year, it was precisely because we were in recession“, he pointed out.

Also, the chairman of MTPE emphasized that during the recession, raising the minimum wage is challenging because of its negative impact on small businesses.

On average, large companies pay more than S/3,000, while medium companies pay more than S/2,000 on average. They are mostly in small and micro industries that pay minimum wages and struggle to regularize.

At another time, Maurate recognized that the minimum living wage (RMV) was insufficient to provide people with a decent living. “What we need to see is the right moment, which will be seen when the economy starts to recover,” the minister added.

Peru registers one Low minimum wage In Latin America in 2024, it ranked fourth in the region with the lowest salary 1.025 sole (Equivalent around $277)

The inquiry was carried out through the portal StatesmanHighlighting the lack of updates regarding the wages of Peruvian workers. MexicoThere are increments implemented.

Peru's labor minister advises against changes, prioritizing exiting recession amid debate over wage hikes (statist)

Among the countries analyzed in the chart StatesmanCosta Rica stands out for having the highest minimum wage, which is approx 687 dollars per month In January 2024. In the Latin American region, other countries also provide relatively high incomes to their workers compared to Peru.

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