He minimum wage in Latin America started 2026 with a regional average close to 400 dollars per month, with heterogeneous adjustments, disparities between economies, fiscal tensions and a persistent loss of purchasing power compared to the cost of living and the high informality labor.
Countries and their income
Among the countries with income higher minimums, Uruguay stands out with a salary that will reach around $620 after a total increase of 7.54% in two tranches, with controlled inflation and collective negotiations that usually set salaries above the legal minimum.
Chiliwith $598remains among the highest in the region thanks to a cycle of increases that began in 2022, although still far from the standards of the Organization for Economic Cooperation and Development (OECD).
In Colombiathe increase of 23.7%, which led the minimum wage at $535 (including transportation subsidy), it was the highest in decades.
Although the Government of the Colombian president, Gustavo Petrodefends this increase as a social advancementeconomists warn about its potential impact on inflation, employment and public spending in an election year.
Mexico approved a significant increase in minimum wage daily—up to $17.58 at a general level and $24.61 on the northern border—which will benefit 8.5 million workers, but also increases costs for companies when recalculating benefits, social security contributions and housing contributions.
In Brazilhe minimum wage It rose 6.79% to $295 per month, according to a legal formula that combines inflation and growth with spending limits.
The adjustment directly affects pensions and social benefits for about a third of the population, but it is still well below the cost of the basic family basket, estimated at about 1,290 dollars.
The most critical case is Argentinawhere the minimum wageset by decree After the failure of social dialogue, it was around $228 in January.
According to a report from the Central Workers of the Argentina (CTA), since the beginning of the Government of Javier Milei and until last November, the minimum wagevital and mobile accumulated a real drop of 35.2% in its purchasing power, due to adjustments below inflation, which reached 117.8% in 2024 and accumulated 27.9% between January and November 2025.
In Peru, the minimum wage remains no changes at 334.5 dollars, while Paraguay maintains a minimum of 437.42 dollars, from which the State deducts 9%, corresponding to the financing of the Social Security Institute (IPS), which leaves the real income at about 392.14 dollars.
Dominican Republic It advances with a staggered increase of 20%, which raises the minimum in large companies to $475, while that of small companies will be $295 and that of microbusinesses at $270.
Costa Rica It registers minimum salaries that are around $600 depending on occupation, while public sector salaries have been frozen for the last 5 years due to a fiscal rule to contain spending, but the Government announced an increase for 2026, although it has not specified the percentage or its scope.
In contrast, Guatemala and Honduras combine moderate increases with high levels of informality, which limit the real scope of the increases.
The Government of Guatemala Last December, he ordered an increase of between 4 and 7.5% to minimum wagedepending on the type of work corresponding.
In the country, around 70% of the population able to work does so in the sector informal.
In Honduras he minimum wage It ranges between 460 and 638 dollars depending on the number of employees of the companies.
In December, Panama approved an increase of between 9.50 and 15 dollars of the minimum wage monthly that will be in effect from January 16, in a country where there are more than fifty minimum wages, depending on the economic activity and the area where it is carried out, and it must be reviewed every two years.
In January 2024 the increase was between 4.5% and 7% which left this income at about 341.12 dollars.
Countries with more extreme situations
The most extreme cases remain Venezuela and Cuba.
In Venezuelahe minimum wage remains frozen since 2022 at about 0.40 dollars per month, partially compensated with bonuses that do not affect labor benefits, while in Cuba The minimum income is equivalent to about 5 dollars, with practically no purchasing power after the failure of the monetary reform.
Although he minimum wage in Latin America averages about 400 dollars a month, the figure hides deep gaps between countries and sectors.
By 2026, the debate will continue to focus on how to improve the real income without affecting the formal employment nor fiscal sustainability, in economies marked by informality and the high cost of living.
