President Dina Boluarte of Peru announced a 10% minimum wage increase, effective next year, exceeding $300 monthly. This follows indications of economic recovery in the Andean nation after last year's recession.
In a televised address, Boluarte said that the minimum wage will rise to 1,130 soles ($301.90) from the previous 1,025 soles.
This is the first minimum wage hike since May 2022, when her predecessor, Pedro Castillo, was ousted from office late last year for trying to dissolve Congress.
"Today, the outlook is optimistic; our economy is projected to grow at a rate of 3.2%, and private investment is significantly recovering," Boluarte said.
Peru's economy went into recession in 2023, thanks to bad weather and anti-government protests since Castillo's ousting. Boluarte still ranks as one of the world's least popular leaders, with approval ratings typically below 5%.
The decision to raise the minimum wage is expected to spur spending among some of Peru's poorest citizens, but the business community has cautioned that it may increase informal employment.
"We do not govern by looking at the ratings, but based on concrete objectives and benefits for the country," Boluarte added.
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