Non-working days in Peru increased 25% in 2 years

In the last two years, non-working days in the country have increased by 25%, as they increased from 12 to 16 holidays.

In this way, formal workers enjoy 30 days of vacation and 16 holidays, which makes us the country with the most paid days off compared to the OECD and Pacific Alliance countries, despite the fact that Peru has the lowest labor productivity of this group of nations, as mentioned by the Central Reserve Bank of Peru (BCRP) in its latest inflation report.

According to the issuing entity, this increase could have different effects. And, although holidays can have a positive impact on the balance between job and family, productivity and consumption in sectors such as tourism, could also have a negative effect, in some cases, on the economic activitiesin addition to raising labor costs, affecting formal hiring.

Estimated impact

The Central Bank clarifies that the effect of non-working days depends on many factors. Thus, although an increase in holidays on work days increases motivation and productivity in the rest of the working days of the week, it also “reduces labor supply and GDP.”

In BCRP analysis, based on recent research, the four additional non-working days recently approved could reduce the increase in GDP by 0.16 percentage points in the first year of implementation compared to the progress that would be made in the absence of said holidays, although the estimated effect is one-time at the level of economic activity.

Data

Effect. He non-primary sector is the most susceptible to additional holidays, with an impact of -0.04 percentage points.

Analysis. In contrast, the primary sectors register medium, although not significant, impacts.

Right. The worker who works on a non-working holiday receives two additional daily payments to the salary ordinary that corresponds to him for that day.