on Monday fulfilled the commitment made in her July 28 address to the nation and signed the supreme decree that sets in motion the gradual increase in the Minimum Living Wage to S/1,300 (about US$381).
In the first stage, the measure provides for a S/100 (about US$29) increase, raising the minimum wage from S/1,130 (about US$331) to S/1,230 (about US$360) as of October 1 for workers covered by the private-sector labor regime.
Subsequently, a second increase of S/70 (about US$20) is planned for the first half of 2027.
A new supreme decree will be issued to implement this second stage, 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 decree was signed at the Government Palace in Lima.
Cabinet Chief Luis Galarreta, Ministers Juan Sheput (Labor and Employment Promotion), and Elmer Cuba (Economy and Finance) participated in the meeting.
Senators and members of the Chamber of Deputies attended the event as well.
The Government's decision reflects the unanimous consensus reached between workers and employers on raising the Minimum Living Wage to S/1,300.
Its implementation will be gradual and is based on a technical assessment by the Ministry of Labor and Employment Promotion.
The assessment takes into account economic trends, employment, productivity, inflation, and informality, with the aim of improving workers' incomes while preserving formal employment.
The measure is also being adopted amid positive growth in formal private-sector employment.