Expectation in Peru for a possible increase in the minimum wage in 2024.

Peruvian workers are in a state of anticipation regarding the possibility of an increase in the minimum wage for the year 2024. President Dina Boluarte, in her speech on July 28, announced that the increase should be finalized during the last quarter of the year. This announcement was met with relief by many, as the economic situation has left the population in a precarious position, struggling against inflation and loss of purchasing power. In the same vein, the National Council for Labor and Employment Promotion has begun deliberating on the minimum wage increase. On August 12, a meeting took place where a 30-day deadline was established for a commission to present a proposal for the increase, which will be discussed in the next scheduled session in September. Labor Minister Daniel Maurate emphasized the importance of reaching a consensus between employers and workers within this council. Maurate detailed that the process for increasing the Minimum Vital Remuneration (RMV) must be methodical and technical to avoid affecting micro and small enterprises. This approach is vital in a context where labor informality has been a persistent problem in the country. The active participation of representatives from both sides is crucial, and the minister expressed optimism about the willingness of those involved to engage in this process. However, not all voices are in favor of an immediate increase. Some congressional representatives have proposed a more substantial increase, raising the RMV to S/ 1,545, which would mean an increase of S/ 520 compared to the current wage. This proposal has generated controversy, and Maurate has clarified that such a sudden increase is not feasible without a consensual agreement among the parties. He also warned that an immediate increase could exacerbate labor informality in the country. The economic context is another factor influencing this discussion. José Arista, Minister of Economy and Finance, suggested that any debate regarding the minimum wage should wait until economic indicators, such as Gross Domestic Product (GDP), improve. The Peruvian economy has shown signs of recovery after a difficult period, but there is still a long way to go to stabilize the situation and strengthen formal employment. The Ombudsman, Josué Gutierrez, also joined the debate, emphasizing the urgent need to assess salary increases given the impact of inflation on workers' ability to meet their basic needs. This situation has led many to demand changes that reflect the economic reality of the country and the urgency of protecting the most vulnerable. Meanwhile, the government has taken measures to increase the salaries of healthcare professionals, indicating a recognition of the need for salary improvements in times of crisis. The increase, effective from December, is a step towards acknowledging the vital work these professionals do, but it also highlights disparities in the treatment of other professions and labor sectors. It is important to remember that the minimum wage in Peru was set at S/ 1,025 in May 2022, during Pedro Castillo's government, when a S/ 95 increase was approved. However, circumstances have changed dramatically since then, and many citizens feel that the measure falls short in the face of growing economic pressure. The path toward a minimum wage increase in Peru is filled with challenges and discussions, and the future of this measure will largely depend on dialogue and collaboration among the different sectors involved. As the deadline established by the National Council for Labor approaches, citizens hope that the decisions made will not only reflect an improvement in their working conditions but also contribute to a more stable and just economic environment.