Peru National Labor Council Agrees to Raise Minimum Wage to S/1,300

CNTPE Adopts S/1.300 Floor Amid Timeline Disagreements

However, the official minutes show that the parties “maintain dissenting positions regarding the date and form of its update.” The starting point for the discussion is the current RMV of S/1.103, which has been in effect since January 2025 following a S/105 increase from the previous baseline of S/1.025. The new proposal from the government represents an increase of S/197, equivalent to approximately 17.87% over the RMV vigente.

Minister of Economy and Finances Elmer Cuba previously outlined a two-stage plan, proposing an initial S/100 bump between October and November of 2026, followed by the remaining S/70 in April 2027. Despite this proposal, the tripartite council has yet to formalize a unified schedule. Labour Minister Juan Sheput presided over the session, which marked the opening of the 2026–2031 period for the CNTPE, and urged the council to enter a permanent session to address immediate and long-term labor market pressures.

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Did You Know? The agreement to elevate the minimum wage to S/1.300 has roots stretching back to a prior accord originally discussed in 2020, which labor leaders argue should now be immediately executed.

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Economic Pressures and the Approach of El Niño

Business representatives argue that implementing the hike immediately could damage companies already vulnerable to climate risks. Daniel Najarro, senior economist at ComexPerú, explained to El Comercio that a potentially extraordinary El Niño event requires a prudent approach. Najarro noted that the agricultural sector alone lost 140,000 jobs nationwide during the second quarter of the year, and pointed out that fishing and micro and small enterprises could face similar hardships.

Labor leaders, conversely, demand immediate implementation. Gerónimo López, general secretary of the Confederación General de Trabajadores del Perú (CGTP), criticized the council’s delays, stating that the government should decree the wage increase in a single tranche without further administrative lag. Julio César Bazán, president of the Central Unitaria de Trabajadores (CUT), echoed this sentiment, arguing that the delayed adjustment should follow the 2020 framework because higher wages improve worker quality of life and bolster economic growth.

Technical Framework and the El Niño Response Commission

To resolve procedural differences, the Pleno of the CNTPE assigned the Comisión Especial de Productividad y Salarios Mínimos (CEPSM) the task of creating a technical proposal for institutionalizing the methodology of RMV adjustments. Each sector—workers, employers, and government—must accredit four principal commissioners, four alternates, and up to three technical advisors within two business days after a schedule is set. The CEPSM will then install itself within five business days to draft its final report for the Pleno.

Additionally, the CNTPE established a second core body: the Comisión Ad Hoc de Respuesta Tripartita al Impacto Laboral del Fenómeno El Niño. This group will convene within five business days and has 15 business days to craft recommendations for mitigating employment and productivity shocks. Proposed monitoring strategies from the Ministry of Labour include weekly tracking of formal private employment in vulnerable districts, supported by temporary job programs like Llamkasun Perú and training initiatives through Jóvenes Productivos and CAPACÍTA-T.

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Frequently Asked Questions

What is the new agreed amount for Peru’s minimum wage?
The CNTPE agreed to establish a target Remuneración Mínima Vital (RMV) of S/1.300, up from the current S/1.103.

Why hasn’t the wage increase taken effect yet?
While workers and employers agree on the S/1.300 figure, they hold dissenting positions on the date and modality of the update. Business groups favor waiting until after the potential impact of the El Niño phenomenon, whereas labor unions demand an immediate, single-tranche increase.

What role does the CEPSM play in this process?
The Comisión Especial de Productividad y Salarios Mínimos (CEPSM) has been tasked with formulating a technical proposal and methodology for adjusting the RMV to guide future updates through a formal decree.