Minister Contreras says the minimum wage increase is conditional on economic growth economy

The Minister of Economy and Finance, Alex Contreras, conditioned the debate on the increase Minimum Vital Wage (RMV) For the development of the Peruvian economy.

In addition, he pointed out that a possible increase would first have to pass a consensus within the National Labor Council.

“There must be a consensus, without growth there cannot be any changes in these variables. “What we hope is that when the economy starts to grow again, when we have strong news, through consensus, we can reach a solution.”He said in a press conference.

Rather, two factors must be considered: the growth of the economy and the loss of earning capacity.. “This should be taken to the National Labor Council. In strong growth, sales improve, companies are able to meet their obligations and employment is created.he added.

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It is worth recalling that Labor and Employment Development Minister Daniel Mouret said on Tuesday that this year would be a good time to discuss increasing the minimum wage, according to the head of the MEF. Get out of recession.

In this regard, Ricardo Herrera, the main partner of Estudio Muñiz, admitted that due to the economic recession the country is experiencing, it is not good to increase the RMV because it could lead to the loss of formal jobs.

“Recovering the economy is the first thing to think about improving the RMV. And, as the minister said, it is the responsibility of the CNT, a social platform for consultation between workers, employers and states on how and when to increase.I notice.

According to Herrera, three variables are considered for the increase: the cost of living, the economic situation of the country and, above all, the productivity of the companies. Regarding the last point, he opined that from 2021 onwards, productivity in the country is not substantial. Hence, firms are unable to absorb labor cost increases such as RMV.

Mira | The total investment in the Talara refinery has increased five times the initial estimated budget: it now exceeds US$6.5 billion.

Petro-Peru

On the other hand, Contreras pointed out that the possibility of a new capital contribution in favor of Petro-Perú is still being discussed in the Council of Ministers and that the position of the MEF is to continue the restructuring plan of the state company.

“The most important thing is that the company's restructuring plan, which is already underway, continues. We will have more details next week. “We are working on it and hope to reach a consensus for the benefit of Peru.”said.

Hydrocarbon expert, Carlos González Ávila, stressed what would happen if the government decides not to provide financial support to Petro-Peru.

The expert explained that the requested capital contribution was not for assets but to cover liabilities and debts with suppliers. “What they are asking for is to pay them. The question is what happens if they don't [ese dinero]? What will Petro-Peru do? Sell ​​a portion of your assets, but who would want to buy a practically bankrupt company?he added.

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Therefore, Gonzalez said it should be a political decision of the government and if the 2,250 million US dollars is given, the government agency should not operate the oil depots.

“This means postponing the investments needed for those places, because in two years Petro-Peru will not invest in them. Finally, we tighten our belts and give them away. [el capital], But we took those places and appointed Perupetro to immediately tender them to the private sector with an immediate investment commitment.He pointed out.

ISC

The chairman of the MEF pointed out that the adjustment to the Selective Consumption Tax (ISC) is being evaluated continuously, which should happen this January as per the current norms.

“We are evaluating it. There is a significant delay. In practice, the load has been reduced, but we are evaluating it. We do not want to affect the reactivation and we will address this at that time as well.”said.

Last year, the administrator decided to postpone the adjustment to the ISC as the country was 'preceding' the onset of an El Niño event (FEN), a fact that would harm many traders.

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Carlos Casas, principal professor and researcher at the Department of Economics of the Research Center of the Universidad del Pacifico, explained that renewing the ISC will create a decline in business expectations, because no matter how small the tax in collections, it is a sign that it creates negative expectations than we already have.

“What can be done is that if inflation is already low next year and the economy recovers somewhat, the ISC may be increased to the same level as inflation, maybe a little more. But now, definitely not. The situation is special enough to create this movement in the expectations and reception of the private sector.”he added.

In the case of Gaza, it is now necessary to consider the circumstances under which this type of increase should occur and the circumstances which would require the establishment of an exception to tax increase.