Humala Gives Approval To Raise Minimum Wage

President Ollanta Humala has authorized officials from Peru’s Labor Ministry to start procedures to increase the minimum wage to 750 soles (approximately $285) a month, from the current rate of 675 soles.

The increase is part of a two-stage hike, for a total of 150 soles, that Humala promised during last year’s presidential campaign. The first hike to 675 soles from 600 soles was approved in 2011.

“Fulfilling my election promise, I want to communicate to you that I have given instructions to the Labor minister to start the procedures to approve the second stage of the increase of the minimum wage from 675 soles to 750 soles,” Humala said, according to state news agency Andina.

Labor Minister Jose Villena said that improving the labor situation in Peru is “a priority” for the government.

“The only way to defeat poverty is by multiplying dignified work opportunities for all working-age Peruvians,” Villena added.

Peru’s biggest business group, the private industry and business confederation, Confiep, said that the minimum wage increase won’t have an impact on medium and large companies, but it could impact small and micro businesses.

Confiep president Alfonso Garcia-Miró said the business group would support the wage increase. “We have to support this measure because it seems that the President is a serious person, that he fulfills his promises,” he said. “The government has to fulfill his promises and we have to support this.”

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