Peru implements minimum wage increase amid El Niño concerns

The Peruvian government has officially implemented a progressive increase in the minimum wage (Remuneración Mínima Vital). Under Supreme Decree No. 015-2026-TR, the wage rose from S/1,130 to S/1,230 on October 1, 2026. A second scheduled increase of S/70, intended to bring the total to S/1,300 during the first half of 2027, is now under review.

Labor Minister Juan Sheput stated that the El Niño phenomenon, which is now expected to persist throughout 2027, may necessitate a revision of the second wage hike. The government is conducting a multisectoral evaluation to minimize economic impacts on sectors such as fishing, construction, and agriculture. To protect businesses facing potential bankruptcy, the ministry is considering the legal mechanism of 'perfect suspension of labor' (suspensión perfecta de labores).

Separately, recent workforce data indicates that professional growth remains a primary driver for employees, particularly among Generation Z and Millennials. While the wage increase benefits approximately 600,000 private-sector workers, economic stability remains a central concern for the administration.