Peru's New Government Proposes Labor Reforms and Minimum Wage Increase

The Confederation of Private Enterprise of Peru (Confiep) has proposed making labor regulations more flexible to promote formal employment, which currently stands at around 30%. President Jorge Zapata of Confiep supports the government's request for legislative faculties to implement measures against urban insecurity, the El Niño phenomenon, and economic reactivation. He proposes reviewing current labor regulations to encourage formalization and debated in the National Council of Labor aspects such as labor excess costs, the number of holidays, and other factors affecting formal employment generation. The government plans to increase the minimum vital remuneration to S/1,300, accompanied by a compensatory bonus for micro and small businesses. Minister of Labor Juan Sheput defends the measure, stating it's part of a coordinated effort with the Ministry of Economy and Finance.