The challenging salary landscape in Peru: debates and expectations regarding potential increases

The salary panorama in Peru has been the subject of intense debates and movements in recent times, especially regarding the increase of the minimum wage. During 2023, President Dina Boluarte announced salary increases for specific sectors such as nurses, midwives, and higher education teachers, generating expectations in the population about possible similar measures for the minimum wage. The Minister of Labor and Employment Promotion, Daniel Maurate, has been clear in pointing out that the increase of the Minimum Vital Remuneration (RMV), or minimum wage, will be evaluated after the installation of the National Labor Council, where consensus is expected to be reached between the representatives of employers' guilds and workers' unions. This process aims to ensure a technical debate that does not harm micro and small businesses. In this context, the Congress of the Republic has proposed a law that seeks to modify the Minimum Vital Remuneration in the country, considering a possible increase of S/ 520, which would raise the minimum wage to S/ 1,545. However, Maurate has emphasized the importance of not making hasty decisions that could negatively impact the economy and employment, insisting on the need for a detailed analysis. The Minister has also mentioned the possibility that the salary increase may materialize in the second half of the year, as long as the economy continues to recover steadily. Additionally, he has ruled out the S/ 1,545 figure proposed by Congress, emphasizing that any increase must be the result of an agreement between employers and workers, thus avoiding possible negative effects on informal employment. On the other hand, the Minister of Economy and Finance, José Arista, has emphasized that the current moment is not the most appropriate to discuss an increase in the minimum wage, and has indicated that it will be necessary to wait for economic indicators, such as the GDP, to improve before considering such a measure. This stance aligns with the need to ensure a solid economic recovery before pushing for changes in salaries. Amidst these discussions, the Ombudsman, Josué Gutiérrez, has highlighted the importance of evaluating the salary increase in a context of inflation and loss of purchasing power, emphasizing the need to guarantee a decent wage for workers. In this sense, the Minister of Labor has agreed on the relevance of any increase responding to clear objectives of improving working conditions and reducing informality. The Government has recently formalized the increase in remuneration for healthcare professionals, in response to the demands of the sector's guilds. This measure, which will come into effect in December, seeks to recognize the effort and dedication of these workers in a context of health crisis. In conclusion, the debate surrounding the increase of the minimum wage in Peru during 2024 remains ongoing, with various positions and proposals at stake. The need to ensure a balance between protecting workers and stimulating the economy continues to be a challenge for the authorities, who must find a consensus that benefits all sectors involved.