Minimum wage increase in Peru 2024: What did the executive announce about the minimum living wage? | Answers

President of Peru In BoluarteSalary hike for nurses and obstetricians announced on November 25, 2023. For higher education teachers till December last year. The head of state indicated that around 300 million soles will be invested to achieve the announced salary increase.

“It is with great satisfaction that I announce that there will be a fourth increment for nurses and midwives. The hike will take effect in December and will benefit 140,000 workers., he said during his participation in “Let's Act Now! Let's protect women from sexual violence”

Even though the government has taken these measures for government employees, majority of people expect similar measures to be announced along with hike in minimum wages.

What did the Economy and Finance Minister say about the minimum wage hike?

According to Economy and Finance Minister Jose Arista, the increase issue can be discussed based on economic indicators etc. BPI, to improve. “This is not the time to discuss raising the minimum wage. Hopefully the economy will pick up speed this semester, and in the second semester, once it is consolidated, it will be a topic to talk about the increase.“, he reiterated in a conversation with RPP.

Labor minister and ombudsman talk about raising minimum wage

Regarding the announcement of salary increases in Peru for this year 2024, Labor Minister Daniel Mouret indicated at the beginning of 2024 that this measure is a presidential promise to be evaluated this year, in which a more favorable outlook is given. More than the former (confirmation of the economic recession the country is going through) and the impact of El Phenomeno del Niño and social protests against the current government. Likewise, the owner added that meetings were held.

New reports were added to these reports, in which the Ombudsman, Josué Gutierrez, announced that it was very important to assess salary increases in the context of inflation and loss of purchasing power, in which salaries are insufficient to cover basic costs.

A few days later, Marat again testified on the matter, agreeing with Gutierrez's opinion. Therefore, the head of the Ministry of Labor indicated that the salary increase should respond to the objectives of stopping or reducing unemployment and labor informality in Peru and not based on political or populist motivations. Finally, he stressed the need to announce a wage increase, which is essential to overcome the recession and strengthen the Peruvian economy.

The government has officially announced the salary hike for health professionals

The government has officially announced a salary hike for health professionals, which will be effective from December. Supreme Order No. 271-2023-EF. It said it would not suspend the indefinite strike until the unions accepted and promulgated the above clause.

“In the coming days, after the 2024 Budget Act recently approved by the Republican Congress, another executive order will be issued authorizing the payment of outstanding salary differentials to a panel of health professionals”The Ministry of Health said in an official statement.

How much will the minimum wage increase in Peru?

The basic pay under wages is currently 1,025 feetAlthough President Dina Boluarte announced the change in the salary scale, she did not give more details about the amount, and an effort will be made to reach a consensus among the parties involved for the benefit of the Peruvian people.

What is the current minimum wage in Peru?

According to current statistics (2023), the minimum wage in the Peruvian labor market is 1,025 feet. This basic salary is usually reduced by an amount related to AFP (Pension Fund Administrator's Contribution), which varies in percentage depending on the salary received. It is also important to take into account the details of your contract and employment to calculate your net income.

When was the last salary increase given?

The last change in the salary scale occurred in May 2022 under the government of Pedro Castillo. Pursuant to the decree of the former President, the Decree N°03-2022-TR This resulted in an increase of 95 feet in the RMV (Minimum Living Wage). Hence, the scale of minimum wages has been increased from the basic 930 feet to 1,025 feet.