Peru approves phased minimum wage increase starting October 1

The Peruvian government has officially approved a progressive increase in the minimum wage (Remuneración Mínima Vital) for private-sector workers. Under a signed Supreme Decree, the first stage of the increase will raise the monthly wage from S/ 1,130 to S/ 1,230, effective October 1.

The plan aims for a final target of S/ 1,300. A second increment of S/ 70 is scheduled for the first half of 2027, following the El Niño phenomenon. To support small and micro-enterprises (MYPE) during this transition, the Ministry of Economy and Finance plans to provide a transitory bonus to approximately 144,000 small businesses.

While the measure was reached through dialogue within the National Labor Council, the Confederation General of Workers of Peru (CGTP) has expressed criticism. CGTP President Luis Villanueva argued that the decision to split the increase into two stages creates uncertainty and noted that the initial presidential announcement did not specify a multi-stage implementation. The union suggested that a minimum wage of S/ 1,700 would be more appropriate given current inflation and the cost of living.