LIMA (Reuters) – Peruvian President Dina Boluarte announced on Friday that the minimum wage will rise by 10% from next year to just over $300 a month, as the Andean nation shows signs of economic recovery after slipping into recession last year.
Boluarte said in a televised speech that the minimum wage would rise to 1,130 soles ($301.90) a month, from the current 1,025 soles.
It is the first increase in the minimum wage since May 2022 under Boluarte’s predecessor, Pedro Castillo, who was ousted in late 2022 for trying to dissolve Congress.
“Today, the outlook is optimistic, our economy is growing at a projected rate of 3.2% and private investment is recovering significantly,” Boluarte said.
Peru’s economy fell into recession in 2023 due to adverse weather and anti-government protests that followed Castillo’s removal from office.
Boluarte remains one of the most unpopular leaders in the world, with polls often putting her at less than 5 percent.
The decision to raise the minimum wage should boost spending for some of Peru’s poorest, although the business sector warned it could encourage more off-the-books informal employment.
“We do not manage by looking at the rating, but based on concrete goals and benefits for the country,” added Boluarte.
(1 USD = 3.7430 soles)
