Andean Group - July 2012 (ISSN 1741-4466)

Peru’s new minimum wage (US$269.95-US$279.85), announced by President Ollanta Humala in May, took effect on 1 July. Despite concerns expressed by the private sector through the national businessmen association (Cofiep) that the increased minimum wage would affect small- and medium-sized businesses, there has been no evidence that the increase has impacted businesses so far. According to Labour Minister José Villena, the government has neither seen evidence that the higher wages have caused the closure of businesses nor that informality in small- and medium-sized businesses has increased. The government estimates that the increase in the minimum wage will benefit some 630,000 people, the majority of whom (605,000) are employed in the private sector.

End of preview - This article contains approximately 203 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial