Title: Peru‘s Minimum Wage Debate Intensifies as Millions Await Decision
Peru’s minimum wage debate is heating up as more than 1.5 million Peruvians subsisting on the basic salary anxiously await the government’s decision. The Confederación General de los Trabajadores del Perú (CGTP) has expressed little optimism about an imminent increase in the Remuneración Mínima Vital (RMV) and insists that it should reach S/1,330.
Gustavo Minaya, secretary general of the CGTP, told Gestion that any figure below this amount would be an irresponsible decision by the Executive Power. Meanwhile, workers at the Consejo Nacional del Trabajo (CNT) proposed raising the RMV to S/1,500, but this was not supported by employers or representatives from the Ministry of Labor and Promotion of Employment (MTPE).
On the other side of the spectrum, entrepreneurs warn that increasing the minimum wage would negatively impact job creation, especially for small and medium-sized enterprises (mypres). However, MTPE’s Daniel Maurate has assured that the RMV update will be cautious.
"Raising the minimum wage irresponsibly, of course, will affect small micro and small enterprises, and that’s why we must make a rational, technical, and responsible increase," Maurate argued in Andina.
Recent RMV Adjustments in Peru
| Year | RMV (SOL) |
|---|---|
| 2022 | 1,025 |
| 2018 | 930 |
| 2016 | 850 |
Julio Velarde Weighs In on RMV Hike
Julio Velarde, president of the Banco Central de Reserva del Perú (BCRP), advises prudence in increasing Peru’s minimum wage. In his latest Inflation Report for December, Velarde mentioned, "Our minimum wage, compared to average incomes, is not that low. The issue is productivity."
As the debate continues, stakeholders hope that a decision will be made soon, addressing the concerns of workers, employers, and the country’s economic landscape.
