After a day of negotiations, the state workers’ unions and the Government of Dina Boluarte reached an agreement to increase the salaries of public employees starting in January 2025. This agreement, signed on June 30, represents a significant advance in salary conditions in the public sector.
He Ministry of Economy and Finance (MEF) initially proposed a fiscal space of S/188 million, which meant an average increase of S/23.5 per month per worker. This offer was widely criticized by unions, as it was insufficient to cover employees’ basic needs. After intense negotiations, the fiscal space was raised to S/825 million, allowing an increase of S/100 per month for all regimes.
Who benefits from public sector wage increases?
The salary increase will benefit all state workers. Beneficiaries include employees under regimes 276 and 728, those belonging to the civil service and workers in special careers such as penitentiary and diplomatic personnel, in addition to Administrative Service Contracts (CAS).
Winston Huamán, general secretary of the Intersectoral Confederation of State Workers of Peru (CITE), stressed that this salary increase is a step forward in the fight against the social debt accumulated by previous governments. According to Huamán, this increase will not only improve the income of state workers, but will also contribute to greater social justice within the public sector.
How much will the increase be for state workers?
The agreed salary increase will be S/100 per month starting in January 2025. This increase will apply to all regimes, including more than one million state workers. In addition to the monthly increase, a one-time bonus of S/200 was agreed to be delivered in January 2025 for all regimes.
Fernando Cuadros Luque, former Vice Minister of Employment Promotion, explained that the increase in fiscal space, almost eight times more than the initial proposal of the MEF, does not put public finances at risk. This increase is managed within the limits of fiscal prudence and is in line with the amounts collectively agreed upon in the last three years. Cuadros pointed out that this agreement is an example of how significant improvements can be achieved through collective bargaining.
What are the improvements for workers under regime 276?
Workers in the 276 regime will also benefit from a salary order that ensures that no employee earns below the Minimum Living Wage (RMV). This agreement establishes a new Single Consolidated Amount (MUC) that will range between S/1,157 and S/1,367, depending on the worker’s occupational group, whether auxiliary, technician or professional.
“None of the workers in regime 276 will continue earning less than the minimum wage,” said Winston Huamán. This wage adjustment not only improves the immediate income of regime 276 workers, but also strengthens the calculation base for their future labor benefits, such as pensions.
Source: Larepublica
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