Low salary in Peru: 65% of Peruvians are dissatisfied with their salary

65% of Peruvians disagree with their salary, according to the Michael Page 2024 Compensation Study. For the research of one of the most important companies in the professional recruitment market, more than 8,000 people were surveyed, including employees and employers, and it was determined that salary is the main factor that defines job satisfaction.

The figure on dissatisfaction breaks down into 49.6% being dissatisfied and seeking a salary increase or change of position and 16.3% being dissatisfied and seeking a change of job.

Main reasons for salary dissatisfaction in Peru

Likewise, within the specifications of salary dissatisfaction in Peru, employees gave the following reasons.

• 40% believe that the responsibilities of the position do not correspond to the salary.
• 23% indicate that the salary has not increased considering inflation.
• 22% say that the salary is not competitive in the labor market.
• 10% affirm that salary is not equitable with that of colleagues who have similar responsibilities.

In fact, the study highlights that, according to the results of the Macroeconomic Expectations Survey carried out by the Central Reserve Bank of Peru, the cost of living in the country has experienced a notable increase in the last two years, in line with the trend global. This increase peaked in the first three months of 2023, with year-on-year inflation reaching 8.66%, then decreasing to 5.8% throughout the year.

Along the same lines, the research shows that employers are aware of this salary dissatisfaction, since, according to the survey applied, 52% of them consider that dissatisfaction with salary is the main reason for resignation in their organization, followed of career progression with 46%.

Mental health and balance with personal life

On the other hand, the study also considered mental health and the balance between personal and professional life within the survey, and the following was found:

• 84% of employees say their mental health is more important than their professional career.
• 37% of workers report experiencing work-related stress, which has had a negative impact on their physical and emotional health.
• 46% say they do not establish limits at work, such as addressing work issues after hours.
• 70% of employees claim to have worked unpaid overtime.

In-person and remote work in Peru

Another point to consider within job satisfaction has been the continuation of remote work, which was established during the pandemic. According to a study, 100% teleworking has almost disappeared (2%) in Peru. The hybrid modality is the choice for 50% of employers and 46% of employees, although with some differences:

• Full-time presence is more present among collaborators (44%) than among their employers (41%).
• 47% of employers state that their company does not provide additional benefits depending on their type of work, while another 48% do, and 5% will do so in the near future.