In the coming days, President Dina Boluarte would announce the increase in the minimum vital remuneration (RMV)currently set at S/1,025. This increase was a promise from his last speech on July 28. However, the president of Confiep, Alfonso Bustamante Canny, pointed out that there is no technical justification for this measure beyond political considerations.
“We understand that political commitments are aimed at meeting this increase. My message is to be cautious, very cautious, because it is not popular and it can become a shot in the foot for the Government itself,” he assured Perú21.
Although this issue was discussed in the National Labor Council (CNT), in which business unions and worker representatives participate, no consensus was reached. Therefore, the decision fell to the Executive, which faces low presidential approval.
The Confiep representative warned that the most affected by this increase will be micro and small businesses (mypes). He explained that today large companies pay workers more than what is established in the RMV.
“It will affect those small businesses that are debating between informality and formality. The transition towards formality becomes more difficult if a measure that is not technical is imposed on them,” he added.
Likewise, he pointed out that there is a belief that a measure like this can raise the popularity of an authority; However, he stated that RMV affects only 2% of the working population.
In that sense, he indicated that the informal worker has an average salary of only S/650, but they are not affected by a change in salary. For this reason, he considered that it is necessary to find mechanisms to reduce informality rates.
For his part, the director of Mypes Unidas del Perú, Daniel Hermoza, warned that an increase in the minimum remuneration at this time could mean the reduction of formal business personnel.
“We do not know what figure is going to be raised, but we do have to think that next year, with a new vital minimum, mypes will have to reduce costs or personnel, which is why we must doubt the goal of the Council of Ministers to have more personnel,” he told RPP.
Productivity
Recently, the BCR published a report in which it explained that the minimum wage represented 60% of the average income in Peru in 2022. This percentage was above that registered in Mexico (51%), Chile (49%), Brazil (46 %) and Uruguay (49%).
“A minimum wage level close to the average income could lead to companies or activities with low levels of productivity becoming less viable and, therefore, fewer workers being hired formally,” he explained.
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