Proposal to increase Peru’s minimum wage rejected

Israel Ruiz

After hours of deliberation, Peru’s National Labor Council was unable to pass an increase on the Andean country’s minimum wage, which is currently at 550 soles.

Peru unions rejected the Labor Council’s proposal to increase minimum wage 27 soles to 577 soles.

Furthermore, the Labor Council said that this increase would only apply to medium and large-sized companies, explaining that small and very small companies would not be able to pay workers this amount.

These proposals were rejected by all of Peru’s main labor unions, which stated that an increase should apply to businesses of all sizes, reported the Labor Ministry.

Representatives from small and very small companies affirmed that if Peru’s minimum wage were increased, they would not be able to continue operating and have to shut down.

Carlos Prieto, the Minister of Finance also stated that increasing the country’s minimum wage could generate more problems.

He explained this would not necessarily benefit the country’s poor because more companies could begin operating informally.

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