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Peru to Raise Minimum Wage in Two Steps With S/100 Increase Set for Oct–Nov

The staged move is meant to temper price and business-cost shocks as the government finalizes support for micro and small firms.

Overview

  • The government confirmed on Tuesday, September 22 that President Keiko Fujimori will soon announce a first S/100 rise to the Remuneración Mínima Vital, lifting the minimum wage from S/1,130 to S/1,230 and expected to take effect in October or November.
  • A second tranche of S/70 remains planned for the first half of 2027 but is conditional on economic developments, including the evolution of El Niño and other macro indicators.
  • The tripartite National Council for Labor and Employment Promotion (CNTPE) agreed on the S/1,300 target and has started designing a technical formula that would use productivity and economic-context criteria to guide future periodic RMV updates.
  • The Economy Ministry backed splitting the rise to limit inflationary and small-business cost pressure, and it will set the amount and timing of a proposed bonus to help micro and small enterprises when the second tranche is applied.
  • If completed, the S/170 increase will equal roughly a 15% nominal rise over the current RMV and officials say the phased approach is intended to balance higher worker incomes with risks to prices, employment and firm finances.