Minimum wage: Government increases the minimum living wage in Peru from 930 to 1025 soles

Supreme Decree No. 003-2022-TR, published this Sunday in the Bulletin of Legal Standards, announced that the minimum wage increases from 930 to 1025 soles. This new measure promoted by the Pedro Castillo government will benefit more than 1.4 million workers in the private sector who currently have a salary lower than the new amount established.

According to this decree, the increase is due to the constitutional right of workers in order to ensure that they have sufficient remuneration for their welfare. In addition, it is part of criteria worked on by the National Council for Labour and Employment Promotion (CNTPE) in 2007.

This measure will apply as of May 1 and represents 30% of its labor force, according to information on the electronic spreadsheet.

It is worth mentioning that in order to establish this new figure, we worked jointly with the professional technicians of the MTPE, the Ministry of Economy and Finance (MEF) and INEI, in order to establish the amount of 95 more than what is currently received as basic remuneration.

In addition, this measure arose from the framework of the CNTPE that year, since it had been agreed that the amount of RMV would be determined according to two variables: core inflation and total factor productivity.

Another institution that played an important role was the National Institute of Statistics and Informatics (INEI) for 2021, the Ministry of Labour and Employment Promotion (MTPE), which analyzed 4 criteria (GDP growth rate, open unemployment, labor informality and ratio between RMV and average remuneration) and did not find alert, thus considering a favorable economic context for the increase in the minimum wage.

Recall that in the last four years, Peru was one of the few countries in the region that did not increase the RMV, unlike others that did, even in times of pandemic.

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