2024 Salary Increase in Peru’s Public Sector: Details, Impact, and Future Negotiations

2024-01-27 19:21:31
State workers have enjoyed a salary increase since January 1. The second part is delivered this year. Photo: Infobae/Andina

As part of the Centralized Collective Agreement, public sector workers have enjoyed an increase in their salaries since January 1, 2024. According to the Ministry of Economy and Finance (MEF), the beneficiaries of the monthly increase in remuneration are servants, managers and officials belonging to labor regimes No. 728, No. 1057 and laws No. 30057, No. 29709. and No. 28091.

In the Collective Bargaining Agreement, approved in mid-2023, a salary improvement was agreed for more than 540,000 public employees. For this reason, the remuneration statement was included in the 2024 Public Budget of the Executive Branch so that the payment might be assigned this year.

“The monthly increase approved in article 1 of this Supreme Decree has a remunerative nature, is pensionable in nature, is subject to social charges and constitutes the basis of calculation for labor benefits, as appropriate,” stated in the supreme decree.

It was announced that the minimum vital remuneration of public sector workers will increase by 100 soles and there will be an exceptional bonus of 600 soles that will be delivered in July and August. | RPP

The salary increase for 540,000 public sector workers amounts to S/100, however, as agreed, the implementation will be in two stages. The first increase is S/ 50, which came into effect from January 2024, while the second salary increase of S/ 50 will come into effect from December 31, 2024.

In this way, the increase of S/100 agreed between the Government and the representatives of public workers would be completed. This amount is also contemplated in the 2024 public budget.

How much is the salary increase in the public sector? (Andean)

As an example, if a public worker currently earns S/1,100, from January 2024, he will receive a salary of S/1,150, and from December 2024 he will begin to earn S/1,200.

José Sandoval, spokesperson for the Peruvian State Workers’ Front (FTEP), pointed out that although it was decided that the second increase would take place on December 31, the Government promised that the salary increase would be included in the December payroll. .

“The forms are closed on the 15th of each month, but they have told us that yes or yes the payment of the S/50 more will be included in December, which would become S/100,” said the leader.

The monthly increase of the servants, directors and officials of the regimes of Legislative Decrees No. 728, No. 1057 (CAS) and Laws No. 30057 (Civil Service), No. 29709 (Special Public Penitentiary Career) and No. 28091 (diplomats), approved in this supreme decree, constitutes a concept independent of the income they receive and is incorporated into the payroll.

The monthly increase constitutes the basis of calculation for labor benefits, for servers, managers and officials, as appropriate; according to the following:

  • In the labor regime of Legislative Decree No. 728, the monthly increase is the basis of calculation for bonuses for national holidays and Christmas; extraordinary bonus for July and December; and, compensation for time of service.
  • In the labor regime of Law No. 30057, the monthly increase is incorporated into the bonuses for national holidays and Christmas; and, to compensation for time of service.
  • In the labor regime of Law No. 29709, the increase is incorporated into bonuses for national holidays and Christmas, and to compensation for time of service at the end of the employment relationship.
  • In the labor regime of Law No. 28091, the increase is incorporated into bonuses for national holidays and Christmas, and to compensation for time of service upon termination of the diplomatic service.

More than 540,000 public workers will benefit in total from a salary increase of 100 soles in 2024. Photo: Infobae

For the granting of the monthly increase approved in article 1 of this Supreme Decree, the following conditions are observed:

  • In national government entities and regional governments, beneficiary servants must be registered in the Computer Application for the Centralized Registry of Payrolls and Data of Human Resources in the Public Sector (AIRHSP) of the Ministry of Economy and Finance.
  • The total monthly income of the server, directors and officials must not exceed the amount of S/15,600 in accordance with article 2 of Emergency Decree No. 038-2006.

The Peruvian State and representations of state workers signed the 2023-2024 Centralized Collective Agreement. Photo: The Peruvian

Under collective bargaining legislation in the public sector, it is mandatory to hold annual discussions on economic and non-economic improvements in the state sector.

In this context, various public sector unions have already presented their demands to the Government to begin talks on the new adjustments that will apply from 2025.

Before this process, the Ministry of Economy and Finance (MEF) must disclose the Final Report on the Situation of the Financial Administration of the Public Sector, which will include the fiscal space available for collective bargaining.

After several months of delay, the Ministry of Economy and Finance (MEF) authorized in November 2023, the delivery of S/ 346 million from the Contingency Reserve to be used to pay the exceptional bonus of S/ 600 for the benefit of more of 560,000 public sector workers. This was achieved thanks to the centralized collective agreement agreed between the Government and the most representative union centers in the country.

Bonus of S/600 will benefit more than 562,000 public sector workers. Photo: capture Congress

As a measure of struggle, the General Confederation of Workers of Peru (CGTP) announced a national march to demand that the Government increase the Minimum Living Remuneration (RMV), currently set at S/1,025. The last time the minimum wage was updated was in May 2022.

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