Minimum salary increase will be evaluated in the second half of the year

Daniel Mauratethe Minister of Labor and Employment Promotion, indicated that the consideration of a possible increase in minimum salary (actually in 1,025 soles) could take place in the second half of the year ongoing, since it will be conditional on the improvement of the Peruvian economy.

“We are now coming out of the recession, In January we have reached a growth of 1.3% of GDP and in February 2.8%. The Minister of Economy estimates that in the second half of this year we may be seeing if the economy has strengthened how to start discussing and talk about increasing the minimum wage. That is the moment we can evaluate,” he commented in the media.

“God willing we can increase the minimum wage this yearit is our greatest wish, but a lot depends on the economic issue and also on whether there is investment. The main reason why we entered a recession in 2023 is because private investment fell”he added.

Daniel Maurate explained that the minimum salary has an impact especially significant in micro and small businessessince the larger and medium-sized companies They usually pay salaries above the minimum living wage.

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“Medium and large companies pay, on average, more than the minimum wage. So where are the minimum wages? They are basically in the small and micro businesseswhich are fighting to remain formal,” he commented.

“In fact, I have already said it, The minimum wage is insufficient and we have to make an enormous effort so that this can be increased. But that depends a lot on the economic issue and last year the increase could not be made because we have been in a recession and a recession is a bad time to increase it,” he added.

The minister reaffirmed the need to technically evaluate any increase in the minimum wage within the framework of the National Labor Council before making a decision on the matter.

It is important to highlight that the minimum wage was increased for the last time in May 2022, when the Pedro Castillo government decided to increase it by 95 solesgoing from 930 a 1,025 soles.

During the last 13 years, there have been several increases in the minimum wage. In August 2011rose from 600 a 675 soles, and in July 2012reached the 750 soles. Later, after almost four years, in May 2016was increased to 850 soles. All of these increases took place during the Ollanta Humala government. Then, in the administration of Pedro Pablo Kuczynski, in March 2018rose from 850 a 930 soles.