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Peru to Raise Minimum Wage to S/1,300 in Two Staged Increases

The government says the phased plan is meant to lift worker pay without triggering major price increases or overwhelming small employers.

Sueldo mínimo: primer aumento sería en noviembre y el segundo en abril de 2027
¿Facultades legislativas delegadas para seguir precarizando el empleo formal?, por Fernando Cuadros Luque
Miembro del directorio del BCR cuestiona aumento de sueldo: "Ojalá no se hubiera planteado"
Keiko Fujimori anuncia aumento de sueldo mínimo y MEF anuncia que el incremento se dará en dos etapas | Foto: Presidencia del Perú/GEC

Overview

  • The executive will raise the Remuneración Mínima Vital from S/1,130 to S/1,300 in two tranches: an initial S/100 planned for November 2026 and a second S/70 slated for April 2027 after the expected El Niño impacts.
  • The Ministry of Economy and Finance and the Labor Ministry will finalize the exact calendar through the National Labor Council and have said they will announce specific months within about two months.
  • Micro and small firms will receive a one‑time compensatory bonus sized to offset the first S/100 increase, with officials targeting businesses that employ roughly two to ten workers.
  • Members of the Fiscal Council and independent economists have warned the rise could strain small employers and slow formal hiring, and they are urging a predictable, productivity‑linked mechanism for future wage reviews.
  • Officials justify the staged approach by citing high informality and fiscal and climate risks including an estimated S/2.5 billion need to respond to El Niño, and they frame the move as balancing higher incomes with price and business stability.