Minimum Wage Increase and Compensatory Bonus for Mypes
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Insights by Echo AI
President Keiko Fujimori announced an increase in the minimum wage to S/1,300 and a one-time compensatory bonus for micro and small businesses (mypes) to help them face higher labor costs. The increase has been criticized by some, such as the President of the Fiscal Council, Alonso Segura, who warned about potential distortions in the labor market and the economy. Business leaders have also expressed concerns about the impact on mypes and called for dialogue to define support measures. The bonus should benefit formal companies and mechanisms are being discussed to ensure formal employment does not become too costly for employers.
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