Possible salary adjustment in Peru: Is a minimum wage increase approaching for 2024?

The salary landscape in Peru could be on the verge of changing, according to recent statements from the National Institute of Statistics and Informatics (INEI) and the Minister of Labor and Employment Promotion, Daniel Maurate. Currently, the minimum wage in the country stands at S/1,025, a figure that could undergo an adjustment during the course of this year 2024. The Peruvian economy has shown positive signs of growth, which opens the possibility of an increase in the Minimum Vital Remuneration (RMV) as long as there is consensus between employers and workers. In a scenario where the Congress of the Republic has proposed a bill to raise the minimum wage to S/1,545, Maurate has emphasized the importance of the economy remaining on a positive growth path to consider such an increase. The minister has highlighted that, if the trend of economic growth continues, a possible salary increase will be evaluated in the second half of the year, although not necessarily at the amount proposed in the legislative proposal. It is essential to consider that any adjustment to the minimum wage must occur through an agreement between employers and workers, as indicated by Maurate. The minister has underscored the need for these types of decisions to be supported by a technical approach, avoiding irresponsible increases that could have negative repercussions on the economy and the labor market of the country. Economic growth in sectors such as Agriculture, Fisheries, Manufacturing, Construction, Electricity, Gas, Water, and Transportation has contributed to a 5.28% increase in Gross Domestic Product (GDP) in the past month of April, according to data from INEI. This positive trend in the Peruvian economy provides a favorable scenario for the discussion and possible implementation of a minimum wage increase. In the public sector, at the beginning of the year, a salary increase of S/50 was implemented for state employees, with a projected total increase of S/100 during 2024. This increase will be carried out in two stages, in compliance with the provisions of the Centralized Collective Agreement and Supreme Decree No. 313-2023-EF. This benefit extends to civil servants, executives, and officials under different labor regimes. Public sector workers who wish to access this salary increase must be registered in the Computer Application for the Centralized Registry of Payrolls and Human Resources Data of the Public Sector (AIRHSP) of the Ministry of Economy and Finance. It is important to note that this salary increase, both in the public and private sectors, falls within the established budget limits to ensure its sustainability and avoid financial imbalances. In the specific case of public sector employees, the second salary increase of S/50 will take effect starting on December 31, 2024, in accordance with the established deadlines. This salary increase not only represents recognition of the work of state employees but also aims to contribute to the economic well-being of Peruvian families in a context of sustained economic growth.