Debate over the increase of the minimum wage in Peru generates expectations and concerns.

The debate over the increase of the minimum wage in Peru has gained new relevance, especially following the statements made by the Minister of Labor, Daniel Maurate, who has provided details about the process underway to evaluate possible increases in the Remuneración Mínima Vital (RMV). President Dina Boluarte, in her speech on July 28, indicated that an increase in this regard was necessary during the last quarter of 2024, an announcement that has generated expectations among both workers and employers. Since August 12, the National Labor Council has been engaged in establishing a tripartite dialogue on the matter. During this first meeting, it was agreed that a specific commission would work for 30 days to present a formal proposal for an increase. This dynamic aims to ensure that the final decision results from a consensus that considers the needs of workers and the economic realities of the country. Maurate clarified that the dialogue surrounding the RMV is directed toward a thorough evaluation that allows for addressing the possibilities of an increase. A deadline of 30 working days has been set for the Productivity and Minimum Wage Commission to present its report, indicating that October could be the month in which crucial decisions regarding the minimum wage in Peru will be made. However, not everything is optimistic in this process. The minister emphasized that any increase must be carefully analyzed to avoid imbalances in the labor market. Maurate warned about the risks that a sudden increase could entail, such as the rise of informal employment in a country where this issue is already significant. In fact, he urged that any modification should not respond to short-term political interests. The proposed law on the table suggests an increase that would raise the minimum wage to S/ 1,545, which represents a considerable increase from the current S/ 1,025. However, the Minister of Labor has pointed out that such a measure would only be implemented if there is a clear agreement between workers and employers, underscoring the importance of dialogue in the decision-making process. The economic context will also play a crucial role in this discussion. José Arista, Minister of Economy and Finance, reiterated that the timing for discussing a wage increase will depend on the recovery of the Peruvian economy. According to Arista, it is essential for economic indicators, such as Gross Domestic Product (GDP), to improve before a significant increase in the RMV is considered. In this regard, both the minister and the Ombudsman, Josué Gutiérrez, have emphasized the need for any potential wage increase to align with the strategy of reducing unemployment and informality. Gutiérrez also pointed to the growing concern over inflation and the loss of purchasing power, factors that make a review of the minimum wage urgent. Despite the anticipation of discussions about the increase in the minimum wage, the government has also taken steps to raise wages in other sectors. Recently, an increase for healthcare professionals was announced, which will take effect in December, demonstrating that the government is willing to address salary demands in critical areas. The current minimum wage, set at S/ 1,025 since May 2022, was the result of a previous increase that fell short of meeting the needs of workers. This situation has led many citizens to question whether the minimum wage is sufficient to cover their basic expenses, especially in an inflationary context. With the beginning of October in sight, discussions and reports from the National Labor Council are expected to be clear and conclusive. Many citizens will pay attention to the decisions made, as the minimum wage not only affects workers but also impacts the economy as a whole and the quality of life for millions of Peruvians. The key will be to find a balance that allows for the improvement of working conditions without destabilizing the market.