The pandemic and political instability have impacted on the devaluation of the sol against other currencies such as the dollar and the euro, which has led to an increase in the cost of living. However, according to a latest survey by the consulting firm Mercer Peru, the 96% of companies are not making changes to their compensation packages such as salaries or year-end bonuses.
Gabriel Regalado, CEO of the business consultancy Mercer Peru, says that it is not convenient for companies to migrate payroll payments and compensations to another currency, since it is not a good moment because the sun has depreciated by up to 10% against the dollar this year. Companies should take into account that they receive their income in soles and it does not make sense to change their fixed costs to foreign currency for now.
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Nevertheless, 4% have applied adjustments for their senior executives both in base salary and in bonuses and commissions. Likewise, by 2022, 10% of companies do plan to migrate some dollar compensation concepts.
Likewise, Regalado explained that, of this 10%, consider that if the dollar remains above S / 4 it is likely that they will begin to make some payment on the greenback, which is a new scenario in Peru, since executives usually earn in soles.
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Among the types of compensation that companies could grant are year-end compensation bonuses, salaries for executives and key personnel or creating a prevention fund against a potential fall.
The specialist pointed out that the devaluation of the currency increases the possibilities of attracting foreign talent, since professionals evaluate taking a job in another country in dollar terms.
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