LIMA (Reuters) – Peruvian President Dina Boluarte on Friday announced that the minimum wage will rise 10% starting next year to just over $300 per month, as the Andean nation shows signs of an economic recovery after slipping into a recession last year.
Boluarte, in a televised speech, said that the minimum wage will rise to 1,130 soles ($301.90) per month, from the previous 1,025 soles.
It marks the first minimum wage increase since May 2022 under Boluarte’s predecessor, Pedro Castillo, who was ousted at the end of 2022 for attempting 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 a recession in 2023 due to adverse weather effects and anti-government protests in the fallout after Castillo’s removal from office.
Boluarte remains one of the most unpopular leaders worldwide, with polls often pegging her approval at less than 5%.
The decision to raise the minimum wage should boost spending for some of Peru’s poorest, though the business sector had cautioned it could encourage more informal employment off the books.
“We do not govern by looking at the ratings, but based on concrete objectives and benefits for the country,” Boluarte added.
($1 = 3.7430 soles)