Minimum wage could increase in 2024: what did the MEF and MTPE say about the increase?

In a few weeks, it will be one year since President Dina Boluarte announced her intention to increase the minimum wage in Peru during her last address to the nation for the National Holidays. Since then, the National Labor Council (CNTPE) has not managed to advance a consensus formula to institutionalize its calculation and give the green light to a final proposal.

This body, which brings together the State, business associations and trade unions, has not met for several months. However, due to the improved performance of the economy, the Minister of Labour, Daniel Maurate, expressed his willingness to restart the discussion of the increase in the minimum wage (RMV) in the CNTPE. In addition to the head of the MTPE, José Arista, Minister of Economy and Finance (MEF), also spoke out.

Minimum wage could increase in 2024: what did the MEF say?

More than two years have passed since the last increase in RMV in our country. Exactly, on May 1, 2022, the government of former President Pedro Castillo published Supreme Decree No. 003-2022-TR, by which it was made official that the basic salary went from S/930 to S/1,025, suffering a slight increase of S/95 that remains in place to this day.

Since then, the National Labor Council has not been able to reach a consensus formula for its technical review. However, the Minister of Labor has brought the issue back to the public eye and announced that he hopes to restart the discussion of the increase in the RMV before 2025. But Maurate was not the only one to refer to this issue, since the head of the MEF, José Arista, made some statements to TV Perú.

“(The increase in minimum wage) I think it is an issue that we have to look at, it is not ruled out definitively. The problems of the economy are multiple and we have to constantly analyze them to see if they are opportune and if they can be addressed,” said Arista, who welcomed Maurate’s initiative to call some meetings to analyze the increase in the minimum wage.

What is the MTPE’s position on the increase in the minimum wage?

In previous statements to the media, Minister Daniel Maurate said that the minimum wage in our country could increase in the second half of 2024, as long as the economic growth trend and the development of private investment are maintained.

This time, the head of the MTPE spoke again during a press conference to confirm that the performance of the Gross Domestic Product (GDP) has been favorable and that this situation re-energizes the debate on increase in RMVwhich is currently set at S/1,025.

“We are seeing that the economy is on the right track. Consequently, we will have to convene the National Labor Council (CNT) to begin discussing (said increase in the RMV). If we have not done so, it is basically because we have been in times of recession. It was not good because it impacts micro and small businesses. Therefore, we have to make a responsible increase,” he said.

By how much would the minimum wage increase in Peru?

From 2003 to the present, the minimum living wage has increased by S/615. The last time this amount was modified in our country was in May 2022 during the government of former President Pedro Castillo, when it went from S/930 to S/1,025. Although President Dina Boluarte announced the increase in the RMV in July of last year, this issue does not seem to be a priority on the agenda of the National Labor Council.

However, it is necessary to highlight that since 2007 there has been a technical review mechanism so that the percentage increases of the RMV in a given year are equivalent to the sum of inflation and the percentage change in average labour productivity in the previous year.