Can you increase the minimum wage in this first quarter?

During last March 2018, before he announced his resignation, Pedro Pablo Kuczynski signed a supreme decree to increase the Minimum Vital Remuneration (RMV). On Tuesday, January 7, Vicente Zevallos, President of the Council of Ministers, announced that the rise in the minimum wage would occur during the first quarter of the year, as President Martin Vizcarra had indicated last year.

He also mentioned that the Government expects that the measure will begin to circulate in March as an official and that, in addition, the payment will be according to the cost of living of the citizens. Currently, the minimum wage for Peruvians has an S/930 value, evidencing an adjustment of S/80 with respect to the previous year. The increase is expected to be greater for this year; Even one of the political parties that are candidates for Congress has a minimum remuneration of S/1,500

But is a large increase in the minimum salary possible to date? According to María Isabel León, President of the National Confederation of Private Institutions (Confiep), «the economy has not grown enough to protect an increase in minimum remuneration.» An increase in the minimum remuneration will not reactivate the economy, what is needed is a greater supply of jobs.

In addition, they have a concern for the 12 million Peruvians who work in informality and do not have the same benefits as a payroll worker; argues that greater measures must be implemented so that unions and companies, both public and private, do not exploit them and obtain all the benefits of a formal worker. As an example, we have the agro-export sector, which showed a growth in the income of its workers by reducing informal hiring. She mentions that «we have to rethink all together what is the best formula to get this informality to end in our country.»

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