Minimum wage increase in Peru: When will it take effect?

On July 29, Keiko Fujimori announced a plan to increase the minimum wage in Peru during her message to the Nation. This measure has generated anticipation among workers and labor market analysts, particularly in a context where inflation and the cost of living have risen significantly in recent years.

Fujimori did not specify an exact date for the implementation of the increase, but she committed to it being realized within six months. This announcement is crucial, as the current minimum wage stands at 1,025 soles, which many experts consider insufficient to cover the basic needs of an average family in Peru.

The increase of the minimum wage is a recurring topic in Peruvian politics and has been a subject of debate for decades. Currently, the minimum wage in Peru is one of the lowest in the region, prompting many workers to seek employment in the informal sector, where working conditions are precarious.

The economic context of Latin America presents significant challenges, with many countries facing similar issues of low wages and informal employment. In Peru, the rate of informal employment exceeds 70%, highlighting the urgent need for improved labor conditions and the implementation of effective policies to support workers.

Labor economics experts suggest that an increase in the minimum wage would not only benefit workers but could also stimulate the local economy by increasing purchasing power. However, they also warn that a sudden increase could negatively impact employment, especially in small and medium-sized enterprises that are already struggling.

As clarity on the date and amount of the increase is awaited, both workers and employers will be closely watching the government's decisions.