2024 Salary Increase in Peru: Updates, Details, and Implications of the Government’s Decision

2024-01-23 04:15:50

The President of the Republic, Dina Boluarte, announced on November 25, 2023 the salary increase for nurses and obstetricians, as well as for higher education teachers starting in December of last year. The Head of State indicated that approximately 300 million soles will be invested to achieve the announced salary increases.

“It is with great satisfaction that I announce that there will be a fourth tranche increase for nurses and midwives. This increase will become effective in December and will benefit 140,000 workers,” he said during his participation in the “Let’s act NOW!” campaign. Let’s save girls from sexual violence.”

Although the Government has taken these measures with respect to State workers, the majority of the population expects similar measures to be announced with salary increases. Find out below what is known about the measure, when it will be debated, what is missing for its approval and more details.

What is known about the 2024 salary increase in Peru?

The Minister of Labor and Employment Promotion, Daniel Maurate assured that this could be a good time to discuss the increase in the Minimum Living Remuneration (RMV), since it is a commitment of President Dina Boluarte.

Maurate highlighted that the increase is a fact that affects micro and small companies since they are the ones who pay said remuneration, unlike medium and large companies, which is why support is necessary for its formalization. He pointed out to the media that, although it is true in 2023 the issue could not be discussed because the country was in a recession, this year the situation will be different according to the best expectations commented by the Minister of Economy, Alex Contreras.

“According to the Minister of Economy (Alex Contreras) this year we are going to get out of the recession, so it will be a good time to discuss the (increase in the) minimum living wage,” he said.

Thus, Minister Alex Contreras conditioned the discussion on the increase in the Minimum Living Remuneration (RMV) to the growth of the Peruvian economy. Furthermore, he pointed out that a possible increase must first pass consensus within the National Labor Council.

“There has to be consensus, and without growth there can be no adjustments in these variables. What we hope is that when the economy starts to grow again, when we have robust news, we can, through consensus, reach a solution,” he said at a press conference.

For Contreras, two elements must be considered, the growth of the economy and the loss of purchasing power of salaries. “That has to be taken to the National Labor Council. In robust growth, sales improve, the ability of companies to meet their obligations, and employment is generated,” he added.

Government makes official the salary increase for health professionals

The government made official the increase in salaries for health professionals, which will become effective starting this December, as established by Supreme Decree No. 271-2023-EF. This, after the unions of the sector accepted an indefinite strike and stated that they would not suspend it until the publication of the aforementioned rule.

“In the coming days, after the publication of the 2024 budget law recently approved in the Congress of the Republic, another supreme decree will be published that authorizes the disbursement of the pending salary differential for the group of health professionals,” said the Ministry of Health through an official statement.

By how much would the minimum wage increase in Peru?

The basic salary under the labor payroll is currently 1,025 soles, although President Dina Boluarte announced a change in the salary measure, she has not given further details of the amount, only that an attempt will be made to establish a consensus between the parties involved in benefit of the Peruvian people.

How much is the minimum wage currently equivalent to?

When was the last salary increase in Peru?

The last change in the salary measure occurred in May 2022, in the Pedro Castillo government. According to what was announced in the former president’s mandate, decree No. 03-2022-TR was issued which established an increase of 95 soles in the RMV (Minimum Living Remuneration). Thus, the amount of the minimum wage rose from a basic 930 soles to 1,025 soles.

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