# Labor market and wage regulation in Latin America

> Live situation record from CLSTR: https://clstr.news/situations/labor-market-and-wage-regulation-in-latin-america
> Updated: 2026-08-24T13:02:46.000Z. Sources: 4. Developments: 2.

Labor market conditions and regulatory updates continue to evolve across Latin America, with recent developments in Costa Rica and Peru regarding holiday pay and minimum wage adjustments.

In Costa Rica, the Ministry of Labor and Social Security (MTSS) has provided further clarification for the 2026 holiday for Black Person and Afro-Costa Rican Culture on August 31. This holiday will fall on a Monday, marking the first time it has been observed on a weekday since its inclusion in the Labor Code. As a non-mandatory paid holiday, commercial employees paid monthly, biweekly, or weekly receive mandatory pay, while non-commercial weekly workers’ compensation remains dependent on whether they work the day.

In Peru, the minimum wage increase previously proposed is moving forward; the Minister of Labor indicated that an increase has been decided by President Keiko Fujimori and is currently being processed by the National Labor Council. Regarding the Santa Rosa de Lima holiday on August 30, legal guidance from the Chamber of Commerce of Lima specifies that if a worker performs duties on a holiday that coincides with their weekly rest day without receiving a compensatory day off, they are entitled to triple pay. This amount comprises the holiday remuneration, payment for the work performed, and a 100% surcharge.

## Claims

- Mexico has three mandatory rest days remaining in 2026: September 16, November 16, and December 25. (single source)
- Workers in Mexico who work on mandatory rest days are entitled to triple pay. (single source)
- Peru's Minister of Labor, Juan Sheput, announced a proposal to increase the minimum wage to S/ 1,300. (single source)
- The Peruvian government is considering moving holidays to Mondays to reduce labor costs. (single source)
- August 31 is a non-mandatory paid holiday in Costa Rica for Black Person and Afro-Costa Rican Culture Day. (single source)

## Timeline

### 2026-08-24: Labor regulations and holiday pay updates in Costa Rica and Peru

Labor updates in Costa Rica and Peru cover holiday pay regulations for upcoming observances and announcements regarding minimum wage increases in Peru.

4 sources. https://clstr.news/cluster/labor-laws-and-wage-updates-reported-in-mexico-peru-and-costa-rica

### 2026-08-09: Labor market instability affects workers in Costa Rica and Honduras

Reports from Costa Rica and Honduras reveal widespread labor issues, with millions of workers earning below the minimum wage due to high informality and insufficient job opportunities.

3 sources. https://clstr.news/cluster/labor-market-instability-affects-workers-in-costa-rica-and-honduras

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Cite as: Labor market and wage regulation in Latin America. CLSTR, https://clstr.news/situations/labor-market-and-wage-regulation-in-latin-america