Peru’s Minimum Wage Increase

LIMA (Reuters) – Peruvian President Dina Boluarte announced a 10% increase in the minimum wage, starting next year, boosting it to just over $300 per month. This decision reflects signs of economic recovery in Peru after last year’s recession.

In a televised address, Boluarte detailed that the minimum wage will rise from 1,025 soles to 1,130 soles ($301.90) per month. This marks the first raise since May 2022 under Boluarte’s predecessor, Pedro Castillo, who was removed from office in late 2022.

Boluarte expressed optimism about the economy, stating it is projected to grow at 3.2% with significant recovery in private investment. Peru had faced a recession in 2023 due to adverse weather conditions and protests against the government following Castillo’s ousting.

Despite these economic improvements, Boluarte remains one of the world’s most unpopular leaders, with her approval ratings often below 5%. The minimum wage increase is aimed at boosting spending among the poorest citizens, although business leaders have cautioned it may lead to more informal employment.

Boluarte concluded by emphasizing that her government prioritizes concrete objectives over ratings.

($1 = 3.7430 soles)