The Minister of Labor, Daniel Maurate, explained that this measure will depend on the recovery of the economy.
The Minister of Labor and Employment Promotion of Peru, Daniel Maurate, indicated today that the possibility of an increase in the minimum wage (currently 1,025 soles or US$270) could be evaluated in the second half of this year, because it will depend on the recovery of the Peruvian economy.
“Now we are 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 can see if the economy has strengthened enough to begin discussing and talking about increasing the minimum wage. That is the moment we can evaluate,” he said on TV Perú .
“God willing that we can increase the minimum wage this year, it 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 indicated that the minimum wage mainly impacts micro and small companies, because large and medium-sized companies pay more than the minimum vital remuneration.
“Medium and large companies pay, on average, more than the minimum wage. So where are the minimum wages? Basically they are in small and micro businesses, which are struggling to remain formal,” he said.
“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 reiterated that the increase in the minimum wage has to be evaluated technically in the National Labor Council and then make a decision.
It should be noted that the minimum wage was raised for the last time in May 2022, when Pedro Castillo's government ordered an increase of 95 soles, going from 930 to 1,025 soles.
In the last 13 years there have been some increases in the minimum wage: in August 2011 it rose from 600 to 675 soles, and in July 2012 it rose to 750 soles. After almost four years, in May 2016 it was increased to 850 soles. All of these increases occurred during the Ollanta Humala government. Then in the administration of Pedro Pablo Kuczynski, in March 2018, it was raised from 850 to 930 soles.
