The head of the Ministry of Labor, Employment and Social Security (Mtess), Monica Recalde, estimates that the minimum wage for Paraguay would be readjusted between 107,000 and 120,000 guaraníes. It would come into effect from next July, benefiting 280,000 workers.
He explained that the workers’ request for a raise is not a new claim, on the contrary, they have been making it for some time, claiming that there have been no significant adjustments for several decades. This situation was somehow remedied after the increases that took place since the 1990s.
“The adjustments have been subject to successive studies by the National Commission on Minimum Wages (Conasam), which has the authority to make proposals and carry out studies, and which are also made up of representatives of workers and employers,” Recalde explained this Wednesday in an interview with the state media.
In this context, the minister mentioned a meeting scheduled for next week of Conasam, in order to analyse the rate of variation of inflation accumulated in 12 months and the subsequent decision to readjust the base salary received by private sector workers.
“In addition to that, a series of activities of the specified minimum wage are being studied to establish these percentages that the Central Bank of Paraguay provides through the study of the minimum wage. At the end of April, we have an inflation that reached 4 percent and we are waiting for what would be data for the month of May, to finalize the reports to the BCP and to be able to submit to the Executive Branch the decree, of the readjustment of the minimum wage for various non-specific activities,” explained the minister.
According to the minister, the adjustment would be 107,000 guaraníes, taking into account the current inflation data, however, taking into account the inflation of May, it is estimated that the final amount would be 120,000 guaraníes.
The Workers’ Union has requested that the calculations be based on the internal performance of basic basket products and other services. However, the minister said that by law this differentiation cannot be made, considering that it must be made based on a general index.
“Normally, the proposal for the adjustment amount comes out in June so that it can be regulated and the adjustment would already be effective in July, which is why studies are already done a month in advance to define the criteria,” he said.
The benefit would reach 280,000 workers, representing 14 percent of those earning the minimum wage, the Secretary of State said.
Additionally, the minimum wage affects everyone in Paraguayan society, as a range of other items, such as traffic violation fines, are fixed to the minimum wage.
