on Monday signed the supreme decree that sets in motion the gradual increase in the Minimum Living Wage (RMV) to S/1,300 (about US$381). This measure will benefit 600,000 workers and allow economic growth to have a direct impact on their households.
At the ceremony, the President was accompanied by Cabinet Chief Luis Galarreta, Senate Chairman Miguel Angel Torres, Labor and Employment Promotion Minister Juan Sheput, Economy and Finance Minister Elmer Cuba, as well as senators and deputies.
Within this framework, the Head of State recalled that the increase was announced during her July 28 address to the nation.
Similarly, the top official said the Government chose to implement the measure while respecting the institutional framework, as well as through dialogue among workers, employers, and the Executive Branch.
"Had we followed past expectations, I could have signed this decision the following day. However, as I clearly told the Cabinet and all Peruvians, this Government will always act institutionally," Fujimori stated.
In this regard, the President praised the work carried out by the Ministry of Labor and Employment Promotion in convening the National Labor Council.
The Head of State underscored the fact that various sectors reached an agreement on the final amount of the Minimum Living Wage.
"This meeting was very important because this decision was unanimously approved. There were disagreements over the timing, of course, but it has the support of all sectors, including unions and, therefore, workers, as well as the private sector and the Government," she indicated.
Afterwards, the Head of State explained that the first stage of the increase will take effect on October 1, when the Minimum Living Wage will rise from S/1,130 (about US$331) to S/1,230 (about US$360).
The top official indicated that the second stage will be implemented after El Niño phenomenon, bringing the Minimum Living Wage to S/1,300 (about US$381). Thus, the total increase will amount to S/170 (about US$50).
The President emphasized that the decision takes into account not only workers' circumstances but also the ability of micro and small enterprises to cope with the increase.
Therefore, she announced support for companies with between two and 10 workers.
"We are aware that Peru depends on entrepreneurs and this sector of popular capitalism, which is the engine of our economy. After discussing the matter with the Economy Minister and the Prime Minister, we felt it was important to provide a bonus, a form of support, to give this measure the boost it needs and ensure it can be implemented sustainably," Fujimori noted.
The Head of State specified that these micro and small enterprises will receive a bonus worth S/100 (about US$29) per worker at the end of October, as part of the support provided by the Government to implement the new minimum wage.
At another point, the Head of State said the measure aims to ensure that economic results have a tangible impact on families.
"What we want is for the growth figures we read about in newspapers and hear in speeches and ministers' statements to also be reflected in small businesses, but above all, in our workers," Fujimori emphasized.
Government makes progress
In turn, Prime Minister Luis Galarreta stressed that the signing of the decree is part of the course of action set by President Fujimori to fulfill commitments that fall directly under the Executive Branch's responsibility.
"It is important to emphasize, for those watching us on television and listening to us, that we are fulfilling the commitments that fall under the Executive Branch and are within its remit," Galarreta underscored.
The Cabinet chief said that, during the first 60 days of his administration, progress was made in removing obstacles to sanitation, transportation, and agricultural projects as well.
The Government increased street operations and strengthened interventions at the most dangerous prisons.
"In 60 days, we have continued making progress on various fronts, and this is another achievement for the citizenry," he said.
Timely decision
For his part, Economy and Finance Minister Elmer Cuba stated that the current situation is favorable for implementing the minimum wage increase, given the growth in formal employment and hiring expectations.
"The labor market has been very strong, with formal employment fortunately growing and creating new jobs for the country. Second, hiring expectations are at an all-time high, according to the Central Reserve Bank's survey," he explained.
The Cabinet member said that inflation is around 4% as a result of the oil shock, adding that the adjustment seeks to prevent wages from eroding.
Institutional measure
Meanwhile, Labor and Employment Promotion Minister Juan Sheput stressed that the minimum wage increase was carried out within the institutional framework, in accordance with the procedure established following President Fujimori's announcement.
The Cabinet member said this process differed from previous wage increases.
Likewise, the minister noted that the relevant economic studies were conducted and the National Labor Council was convened before the decision was made.
Finally, he stressed that, following the social dialogue process, it is up to the Executive Branch to make the necessary decisions to implement the measure.
"Governing means engaging in social dialogue, but also making decisions. And that is up to the Government, in this case, under President Keiko Fujimori," he concluded.