Wages in Latin America suffered some adjustments due to the havoc left by COVID-19 in the different economies, such as high levels of unemployment, the fall of the productivity in small businesses, inflation, the devaluation of some currencies against the dollar, among others.
Many of the nations in the region chose to increase their minimum living wages in response to high product prices. In some countries, such as Peru, the issue has generated debate since the last quarter of 2021.
Below, find out the panorama of some countries in the region and what their increases are for this new year.
Chile
In September 2020, the minimum wage was 326,500 pesos. Seven months later, on May 1, 2021, the minimum wage is 337,000 Chilean pesos, about US $ 397.57 (if we take the current exchange rate) for people between 18 and 65 years old, while the minimum income for those that are not in that age range is $ 251,394 (US $ 295.39).
Ecuador
In the northern country, the minimum wage began in 2022 with US $ 425, after the announcement of US $ 25 made by the president Guillermo Lasso last December 14, despite the refusal of the business community.
This percentage increase is the highest in the last eight years made by the Executive, which decided the increase after the National Council of Work and Salaries, made up of workers and employers, did not reach an agreement weeks ago.
The measure should benefit nearly 450,000 people, representing 18% of private sector workers. However, this figure represents only 5.42% of the economically active population of the country, which reaches 8.3 million people.
In the last 12 years, the basic salary in Ecuador increased by US $ 185, from US $ 240 in 2010 to US $ 425 in 2022.
Colombia
On December 15, 2021, the president of Colombia Iván Duque signed the decree that dictates the 10.7% increase to the minimum wage for workers in 2022 and will go from 908,526 to 1 million pesos. In addition, the transportation subsidy will go from $ 106,454 this year to $ 117,172 in 2022. Thus, the total minimum wage that includes the aid in question will remain at $ 1,117,172 (US $ 273.05).
In this way, the salary in Colombia rises for the third time since COVID-19. In 2020 the minimum wage increased by decree, after not achieving the necessary consensus and this stood at $ 877,802 (with transportation assistance at $ 980,657), a rise of 6%, while for 2021 it rose by 3.5% to the $ 908,526 (with transportation assistance $ 1,014,980).
The minimum wage in Argentina It currently stands at 31,938 Argentine pesos, which at the official exchange rate is about US $ 310.
An agreement signed on September 21, 2021 established a progressive increase in the minimum, vital and mobile salary that indicates that in February 2022 the salary will reach 33,000 pesos, thus reaching a cumulative interannual increase of 52.7% during 2021. In March there will be a new review.
Panama
The Central American country will start a new minimum wage ladder from the second half of January, with increases in some sectors of the economy.
Panama It has two main regions for the minimum wage and several segments. However, the range is $ 326.56 for small business employees and $ 403 for large business employees.
According to Executive Decree 74, promulgated by the administration of President Laurentino Cortizo, an increase of 1.5% was ordered in activities such as agriculture, fishing and livestock; one of 2% in services and supplies, and 5% in domestic service.
However, within these activities there will be segmentations as plantain or banana workers will receive a 13% increase in their salary for being a sector in recovery. Regarding the work in construction and quarrying works, the increase will be 1% and 2% in activities of energy services, urban care, financial activities and insurance, and social and health services. Workers in sectors such as commerce, hospitality, entertainment or the arts were not included in the increases.
Venezuela
The comprehensive minimum wage in Venezuela It is 10 digital bolivars, which represents US $ 2.18 of income per month, according to the official rate of the Central Bank of Venezuela (BCV).
The increase was announced in May 2021. Since then, its purchasing power in dollars had a decline of almost 30%, considering that on the day of the announcement it represented US $ 3.54.
The minimum income authorized by the national government for a worker in Venezuela has remained between 1.5 and 3 dollars, on average, in recent years.
Peru
The last time the minimum wage increased in Peru was on March 18, 2018, in full resignation from the presidency of Pedro Pablo Kuczynski, which amounts to S / 930 (US $ 233.4). Currently, it is below the minimum vital remuneration of countries such as Panama (US $ 268), El Salvador (US $ 243) and Colombia (US $ 273).
The rise meant 9.4%, with which the amount went from 850 soles to 930 soles.
Meanwhile, the head of the Ministry of Labor and Employment Promotion (MTPE), Betssy Chavez, announced that his office will discuss a possible increase in the minimum wage during the first quarter of this 2022.
With information from Bloomberg Online.
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