Peruvian President Keiko Fujimori announced that the government will raise the minimum vital remuneration to S/1,300 during her first Address to the Nation. The wage increase is part of a series of economic measures intended to boost the labor market and bring stability to Peruvian households. Fujimori said reactivating income-generating engines for families is a top priority for her administration.
The current minimum wage in Peru is S/1,130, which took effect on January 1, 2025 after a S/105 increase established by Supreme Decree N° 006-2024-TR. Fujimori said the government aims to raise worker earnings while keeping businesses sustainable and expanding formal employment.
Two-stage implementation plan
Minister of Economy and Finance Elmer Cuba said the wage increase announced during Fujimori's July 28 address will be applied progressively. Cuba explained that the government will raise the minimum wage in two separate steps, with a first increase of S/100 followed by a second increase of S/70 to reach the S/1,300 total. He said this staged approach is designed to prevent a sharp spike in inflation.
Cuba added that the two-step structure will also reduce financial difficulties for micro and small businesses. To further cushion the impact on smaller companies, the wage policy includes a dedicated support measure for the business sector.
Business support and investment rules
Fujimori said the wage increase will be accompanied by a one-time compensatory bonus for micro and small businesses. She noted that the bonus will help smaller firms bring informal workers into the formal labor market and manage higher labor costs responsibly.
Fujimori said her economic framework seeks a national balance where higher salaries coexist with sustainable companies and increased formal jobs. She also pledged to provide legal certainty, stability, and clear rules for both national and foreign investors. She said the state will cut unnecessary bureaucratic hurdles to make government decisions predictable and drive economic growth.
