Minimum wage in Peru: Will there be an increase in 2024? MTPE speaks out on the RMV | ANSWERS

President Dina Boluarte announced on November 25, 2023, an increase in salaries for nurses and midwives, as well as for higher education teachers, starting from December of the previous year. The Head of State stated that approximately 300 million soles will be invested to implement the announced salary increases.

“I am pleased to announce that nurses and midwives will receive a fourth-tier salary increase. This increase will take effect in December and will benefit 140,000 workers,” she said during her participation in the campaign “Let’s Act NOW! Let’s Protect Girls from Sexual Violence.”

While the government has taken these measures concerning state workers, many in the population are hoping for similar announcements regarding an increase in the minimum wage.

WHEN WILL THE SALARY INCREASE BE EVALUATED ACCORDING TO THE MINISTER OF LABOR?

The Minister of Labor and Employment Promotion, Daniel Maurate, mentioned that the increase in the Minimum Vital Remuneration, or minimum wage, will be assessed after the establishment of the National Labor Council, which includes representatives from employer associations and workers’ unions.

“The increase in Minimum Vital Remuneration (RMV) follows a procedure that primarily takes place in the National Labor Council, where agreement and consensus must be reached, as this discussion falls within the council,” he explained.

“What I can confirm is that we will first aim for the National Labor Council to convene. Once the meeting is held, we will announce it. There seems to be a willingness from both employer and worker representatives to attend and participate in the meeting,” he added.

Daniel Maurate reiterated that the increase in the minimum wage must be discussed technically in the National Labor Council to avoid adversely affecting micro and small businesses.

WHAT DID CONGRESS SAY ABOUT THE INCREASE IN THE MINIMUM WAGE?

The Congress of the Republic proposed a law aimed at amending the Minimum Vital Remuneration of Peru. It indicated that it would increase to 1,545 soles. If approved, this would result in an increase of S/ 520 to the current Peruvian salary (S/ 1,025).

Minister of Labor Daniel Maurate reaffirmed his previous statements, emphasizing that the salary increase could take place in the second half of the year, provided the economy continues to recover as projected or even better. Additionally, Maurate denied that the minimum wage would be raised to S/ 1,545 as suggested by the congressional proposal, stating that such an increase would need to occur through an agreement between workers and employers.

Finally, the head of the MTPE revealed that a significant wage increase could lead to a rise in informal employment in Peru, and that the proposal would need thorough technical analysis rather than political motivations.

THIS IS WHAT THE MINISTRY OF ECONOMY SAID ABOUT THE INCREASE IN THE MINIMUM WAGE

According to the Minister of Economy and Finance, José Arista, discussions regarding the increase could occur once economic indicators, such as the , improve. “This is not the appropriate time to discuss raising the minimum wage. We anticipate that the economy will gain momentum in the first semester, and in the second semester, once it consolidates, it will become a topic of discussion for the increase,” he reiterated in conversation with RPP.

Minister of Labor and Ombudsman speak out on the increase in the minimum wage

Regarding the announcement of the salary increase in Peru for 2024, the Minister of Labor, Daniel Maurate, indicated at the start of 2024 that this measure is a presidential commitment that was planned for assessment this year, with a more favorable outlook compared to the previous year (when the country was in recession) plus the lingering effects of the El Niño phenomenon and social protests against the current government. He also added that meetings have already been held.

Following this, Ombudsman Josué Gutierrez expressed that evaluating salary increases is critical in a context of inflation and loss of purchasing power, wherein salaries no longer suffice to cover basic expenses.

A few days later, Maurate reiterated his stance, agreeing with Gutierrez. The head of the Ministry of Labor pointed out that the salary increase must aim at reducing unemployment and informal employment in Peru, rather than being motivated by political or populist interests. Ultimately, he emphasized the need to overcome the recession and bolster the Peruvian economy to announce an increase in living wages.

Government makes official the salary increase for health professionals

The government officially announced the salary increase for health professionals, effective from this December, as established by the . This decision followed the unions in the sector agreeing to an indefinite strike, stating that they would not suspend it until the publication of the mentioned regulation.

“In the coming days, following the release of the recently approved 2024 budget law by Congress, another supreme decree will be issued authorizing the disbursement of the pending salary differential for the group of health professionals,” the Ministry of Health stated in an official announcement.

By how much would the minimum wage increase in Peru?

The current basic salary is 1,025 soles. Although President Dina Boluarte has announced a change in the salary measure, she has not provided further details about the amount, only indicating her intention to achieve consensus among the involved parties for the benefit of the Peruvian people.

How much is the minimum wage in Peru today?

When was the last pay raise given?

The most recent change in the salary measure occurred in May 2022, during the government of Pedro Castillo. During the former president’s term, Decree No. 03-2022-TR was announced, which established an increase of 95 soles in the RMV (Minimum Vital Remuneration), raising the minimum wage from a basic 930 soles to 1,025 soles.

<article>
    <h1>President Dina Boluarte's Salary Increase Announcement</h1>

    <p>On November 25, 2023, President Dina Boluarte announced an increase in salaries for nurses, midwives, and higher education teachers starting from December 2023. The initiative involves an investment of approximately 300 million soles to implement these significant salary increases, impacting around 140,000 workers in the healthcare and education sectors.</p>

    <h2>Details of the Salary Increases</h2>
    <p>During her participation in the campaign “Let's act NOW! Let's save girls from sexual violence,” President Boluarte expressed her satisfaction in declaring a fourth-tier salary increase for nurses and midwives.</p>
    <blockquote>
        <p>“It is with great satisfaction that I announce that a fourth-tier increase will be given to nurses and midwives. This increase will take effect in December and will benefit 140,000 workers.”</p>
    </blockquote>

    <h2>Public Expectations Regarding Minimum Wage Increases</h2>
    <p>Despite government efforts to enhance the salaries of state workers, the Peruvian population is keenly awaiting promises of similar increases in the minimum wage. Let’s explore when such an increase might be evaluated.</p>

    <h2>When Will the Salary Increase Be Evaluated According to the Minister of Labor?</h2>
    <p>The Minister of Labor and Employment Promotion, Daniel Maurate, mentioned that the evaluation of the Minimum Vital Remuneration (minimum wage) will take place after the establishment of the National Labor Council. This council unites representatives from employer associations and workers' unions.</p>

    <blockquote>
        <p>“The increase in the Minimum Vital Remuneration (RMV) has a procedure, which basically takes place in the <strong>National Labor Council</strong> where agreement and consensus must be reached.”</p>
    </blockquote>

    <p>Additionally, Maurate stated that there is a willingness from both employer and worker representatives to participate in the meetings necessary to discuss the wage increase.</p>

    <h2>Congress's Stance on Minimum Wage Increases</h2>
    <p>The Congress of the Republic has proposed a law aimed at modifying the Minimum Vital Remuneration, suggesting an increase to 1,545 soles. If this proposal is endorsed, it would represent an increase of 520 soles from the current minimum wage of 1,025 soles.</p>

    <h3>Minister of Labor's Insights</h3>
    <p>Minister Maurate emphasized that any salary increase should be discussed technically within the National Labor Council to prevent adverse effects on micro and small businesses.</p>

    <h2>Statements from the Ministry of Economy</h2>
    <p>José Arista, the Minister of Economy and Finance, signaled that discussions about increasing the minimum wage could occur once economic indicators improve.</p>

    <blockquote>
        <p>“This is not the time to discuss raising the minimum wage. We hope that the economy will gain momentum in this semester.”</p>
    </blockquote>

    <h2>Reactions from Officials Regarding Labor Wages</h2>
    <p>About the upcoming salary increases for 2024, Minister Maurate clarified that the measure is a presidential promise aimed at assessing the economic situation.</p>

    <p>Ombudsman Josué Gutierrez also voiced the importance of evaluating salary increases amid inflationary pressures that have diminished purchasing power and made current salaries insufficient for basic needs.</p>

    <h2>Official Declaration of Salary Increases for Health Professionals</h2>
    <p>The government has officially sanctioned salary increases for health professionals effective this December, as formalized by <a href="https://busquedas.elperuano.pe/dispositivo/NL/2241248-3/">Supreme Decree No. 271-2023-EF</a>. This decision followed a threat of a strike by health sector unions, who demanded action prior to the publication of the decree.</p>

    <h2>Projected Minimum Wage Increase in Peru</h2>
    <p>Currently, the basic salary under the payroll is set at 1,025 soles. President Boluarte has committed to proposing adjustments, though no specific plans have been released yet. The focus remains on establishing consensus among stakeholders for the benefit of the Peruvian populace.</p>

    <h2>Current Minimum Wage in Peru</h2>
    <p>As of now, the minimum wage in Peru stands at 1,025 soles. The last increase transpired in May 2022 during Pedro Castillo’s administration. The increase involved 95 soles, elevating the minimum wage from 930 soles to the current level of 1,025 soles.</p>

    <h2>Summary of Minimum Wage Changes in Peru</h2>

    <table class="wp-table">
        <thead>
            <tr>
                <th>Date</th>
                <th>Minimum Wage (S/)</th>
                <th>Description</th>
            </tr>
        </thead>
        <tbody>
            <tr>
                <td>May 2022</td>
                <td>1,025</td>
                <td>Increase from 930 soles by 95 soles</td>
            </tr>
            <tr>
                <td>December 2023</td>
                <td>TBD</td>
                <td>Potential increase pending review</td>
            </tr>
        </tbody>
    </table>

    <h2>Conclusion</h2>
    <p>While the recently announced salary increases reflect a commitment to healthcare and education, the broader discussion on the minimum wage remains vital as the government navigates economic recovery.<br></p>
</article>

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