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Peru Plans Two-Step Minimum-Wage Rise to S/1,300

The government says the phased increase is meant to limit inflationary pressure and its rollout will depend on MEF budget clearance, a presidential announcement, and CNT negotiations.

Overview

  • Officials confirmed on Sept. 11 that the Remuneración Mínima Vital will reach S/1,300 through two increases of S/100 and S/70, with the first tranche to be executed this semester.
  • Economy Minister Elmer Cuba framed the split increase as a way to avoid a sharp inflationary shock and to protect hiring capacity in micro and small firms.
  • Labor Minister Juan Sheput said the exact start date will hinge on the Ministry of Economy and Finance completing a budget evaluation and on a formal announcement by the president.
  • The Consejo Nacional del Trabajo has resumed talks to set the schedule and details, while the main union CGTP rejects S/1,300 and demands S/1,500.
  • The MEF will also decide on targeted supports for MYPEs and the possible design of a complementary bonus to ease the initial cost impact on small employers.