Economy and Finance Minister Elmer Cuba stated on Friday that the minimum wage will increase to S/1,300 (about US$384) in two stages, with an initial raise of S/100 (about US$30).
“We will implement the increase in two stages. The first will likely be S/100 and the second S/70 (about US$21), to complete the increase while ensuring that the impact does not affect inflation or the costs of small businesses, which will also receive government support during the first month,” he explained.
Accordingly, in the second stage the minimum wage will increase by S/70, bringing it to S/1,300.
The government official said at a press conference to present the Government’s first economic measures and priorities that the increase will be coordinated with Labor and Employment Promotion Minister Juan Sheput and the National Labor and Employment Promotion Council.
“Once we have that clearly defined, we will announce the exact months when the increases will take place in two stages, based on the Council’s assessment,” Cuba indicated.
“We want this to improve the purchasing power of people earning the minimum wage, but we will implement it in two stages,” he added.
It is worth recalling that President of the Republic Keiko Fujimori announced on July 28 that her Government will raise the minimum wage to S/1,300 as part of measures aimed at improving workers’ incomes.
The minimum wage currently stands at S/1,130 (about US$334).
“To improve workers’ incomes, we will raise the minimum wage to S/1,300,” Fujimori stated, noting that the increase will be accompanied by a one-time compensatory bonus for micro and small enterprises.
She explained that the measure will help micro and small enterprises bring workers into the formal economy and responsibly manage the higher labor costs resulting from the minimum wage increase.
(END) CNA/MVB
