Minimum Wage in Peru - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Peru?

The Constitution of 1993, in its article 24, states: "Minimum wages are regulated by the state with participation of representative organizations of workers and employers." The laws 27,711 and 28,318 (2004) indicate that the minimum wage is determined by the National Labour Council, attended by government, business associations and labor confederations.

Do one or more minimum wages exist that is/are determined by law?

Depending on the application of Article 24 of the Constitution of 1993 the minimum wage takes a unique value for the whole country and for all activities within the private sector.

At what level is minimum wage rate determined?

The minimum wage, and floor of the wage scale, refers to a single value with national coverage. (Constitution)

On what basis is minimum wage calculated?

The minimum wage is set according to a formula that takes into account productivity and inflation.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

In general, the minimum wage (minimum wage) is the minimum monthly amount to be paid to a worker in the private sector for an eight hours, but even though the standard does not state the requirement for the perception of the Remuneration Low labor Vital is at least 4 hours a day or 24 hours a week. This follows from Article 3 of the Ministerial Resolution No. 091-92-TR which states that "when the nature of the work or convention, the server labore less than four (4) hours per day, earn the equivalent of the portion of the established minimum living wage taking as the basis for this calculation for Week ordinary workplace it serves. "

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

The minimum wage is determined by the National Labour Council, attended by government, business associations and labor confederations.

How are upratings (adjustments) of minimum wage/S decided upon?

The remuneration is set by the Ministry of Economy and Finance and is approved through emergency decrees from the Presidency of the Council of Ministers.

Which are the components of minimum wage in Peru?

Only fixed component.

How frequently is the fixed component of minimum wage updated?

The Constitution of 1993 does not mention the frequency of adjustment of the minimum wage. In general, the regulation of the minimum wage in Peru, has not been accompanied by a definite wage policy, which explains the successive changes at short intervals, their components, value and criteria to be adopted.

What is/are the yardstick/s on which minimum wage upratings are based?

In order to maintain the purchasing power of workers earning minimum payment is taken into account as the first account of the inflation criterion cumulative average. As a second step, we consider the economic context of the country, which included the annual percentage change in average labor productivity in the non-primary sector of the economy.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

What is the incidence of minimum wages(s) in the national labour force (wage earners only)?

According to recent estimates Peru workforce is 15 million people. The incidence of the minimum wage directly reaches nearly 638,000 formal workers nationally (less than 5% of the workforce in Peru) which corresponds to 25 000 613 000 public and private sector.

How is minimum wages compliance regulated?

The Ministry of Labour and Employment Promotion of Peru is responsible.

Which legal sanctions can be applied in compliance is lacking?

The Ministry of Labour and Employment Promotion of Peru is responsible for establishing in each case what penalties apply.

Are sanctions often being applied?

When the Ministry of Labour and Employment Promotion found a violation, the penalties are applied.

Are employer and/or trade union representatives involved in compliance procedures?

No employer or TU representatives are not involved in compliance procedures.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

The Ministry of Labour and Employment Promotion of Peru has a working consultation service through a phone line free 0800-1-6872 or through their website http://www.mintra.gob.pe/