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Peru - Minimum Wages - 2011


LAST UPDATE

28 February 2011

SOURCES


Name of Act

Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector (Incrementan la remuneración Mínima Vital de los Trabajadores sujetos al Régimen Laboral de la Actividad Privada)

Name of Act

Supreme Decree N° 252-2010-EF Index Tax Unit (Unidad Impositiva Tibutaria) of 10 December 2010

Name of Act

Political Constitution of Peru of January 6, 1993, (Constitucion Politica del Peru, Official Gazette "El Peruano" 4567, p. 111902, January 9, 1993) as amended up to Act 28607 of 6 March 2002

Name of Act

Act Nº 27711 on the Labour Ministry and Employment Promotion of 16 April 2002

Name of Act

Supreme Decree 003-97 TR Law on Labour Productivity and Competitiveness, (Ley de Productividad y Competitividad Laboral Official Gazette "El Peruano" of 27 March 1997).

Name of Act

Supreme Decree 002-97 TR Law on Labour Training and Promotion of Employment (Ley de Formacion y Promoción Laboral) Official Gazette "El Peruano"March 27, 1997) 21 March 1997

Name of Act

Decree Law 25593, on Labour Collective Agreements (Ley de relaciones Colectivas de Trabajo y levanta las observaciones formuladas por el Comité de LIbertad Sindical de la Organización Internacional del Trabajo) of June 26, 1992 as amended up to Law 27 912 of 12 December 2002.

Name of Act

Legislative Decree N° 910, General Law on Work Inspection and Workers’ Defence, (Ley General de Inspección del Trabajo y Defensa del Trabajador) of March 16, 2001

Name of Act

Name of Act

Supreme Decree 030-89-TR regulating the mining sector (Decrecto Supremo 030-89-TR que regula la actividad minera) of 2 September 1989

Name of Act

Act Nº 27360 issuing the regulation for the agricultural sector (Ley que aprueba las normas de promoción del sector agrario) of 30 October 2000, as amended up to the Supreme Decree N° 011-2010-TR

Other source used

Act. N° 25101 issuing the minimum wage for professional journalists(Ley N° 25101 que establece el sueldo mínimo del periodista profesional colegiado) of 1 October 1989

LEGAL DEFINITIONS


Wage

Shall mean the compensation in cash or in kind that a worker receives for services rendered.
Supreme Decree 003-97 TR Law on Labour Productivity and Competitiveness Art.6

MINIMUM WAGE FIXING


Procedure


Government decides after consultation of the social partners

The Government under the National Labour and Employment Promotion Council decides the regulation of the minimum wage, after consultation of the organizations representing workers and employers.
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector (Recital)

Minimum wages set directly by tripartite negotiations

The minimum wage is fixed by the National Labour and Employment Promotion Council. The National Labour and Employment Promotion Council is a tripartite institution made up of government, workers’ and employers’ representatives.
If there is no agreement on minimum wage rate within the Council, the President fixes the minimum wage through emergency decree.
Political Constitution of Peru Art.24, art. 118
Act Nº 27711 on the Labour Ministry and Employment Promotion Art.13

Minimum wage set through decentralized collective bargaining

Wages can also be fixed by collective agreement. The legislation is unclear as to whether wages lower than the minimum wage rate can be set by collective agreement.
Decree Law 25593, on Labour Collective Agreements Art.43

Criteria


Needs of workers and their families

The worker is entitled to a fair and adequate compensation to seek for him and his family material and spiritual welfare.
Political Constitution of Peru Art.24

Cost of living

The worker is entitled to a fair and adequate compensation to seek for him and his family material and spiritual welfare.
Political Constitution of Peru Art.24

Economic development

The minimum wage fixing must take into account technical criteria as the analysis of inflation and productivity, so that the increase must reflect the country’s economic performance and ensure the purchasing power of workers.
Political Constitution of Peru Art.24
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector (Recital)

Productivity

The minimum wage fixing must take into account technical criteria as the analysis of inflation and productivity, so that the increase must reflect the country’s economic performance and ensure the purchasing power of workers.
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector (Recital)

Capacity of employers to pay

The minimum wage fixing must take into account technical criteria as the analysis of inflation and productivity, so that the increase must reflect the country’s economic performance and ensure the purchasing power of workers.
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector (Recital)

Inflation rate

The minimum wage fixing must take into account technical criteria as the analysis of inflation and productivity, so that the increase must reflect the country’s economic performance and ensure the purchasing power of workers.
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector (Recital)

Coverage


Scope

All workers in the private sector are covered by minimum wage legislation. There is one general minimum wage rate applicable to all workers in the private sector.
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector Art.1

Specific minimum wage rates


» Specific minimum wage by occupation

Yes

» Specific minimum wage by sector

Yes

» Minimum wage levels for specific categories of workers


» Trainees

Remuneration for trainees, cannot be lower than the minimum wage. If youth work less than a full working day, their remuneration should be set on a pro-rata basis.
Supreme Decree 002-97 TR Law on Labour Training and Promotion of Employment Art.9(d), art.35

» Domestic Workers

The minimum wage for domestic workers, live in or live out, will be the agreed between the parties. The employer must provide food and or accommodation to the worker according to its economic capacity. However payments in kind are not considered part of the minimum wage.
Act n° 27986 on Domestic Workers Art.5

» Youth

Remuneration for youth, cannot be lower than the minimum wage. If youth work less than a full working day, their remuneration should be set on a pro-rata basis.
Supreme Decree 002-97 TR Law on Labour Training and Promotion of Employment Art.9(d), art.35
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» Other categories

Domestic workers:

The minimum wage for domestic workers, live in or live out, will be the agreed between the parties. The employer must provide food and or accommodation to the worker according to its economic capacity. However payments in kind are not considered part of the minimum wage.

According to Supreme Decree No. 011-2010-TR, the minimum wage rate from February 2011 is the basis for calculating the new minimum wage rates for the following working categories:

Mining workers:

The minimum wage for workers in the mining sector may not be less than the general minimum wage rate plus the 25% of this amount. Mine worker’s minimum wage is fixed in S/.750 soles per month. (Art.1 Supreme Decree N° 030-89-TR)

Agricultural workers:

The minimum wage for workers in the agricultural sector is S/.23.4 soles per day. (Art. 7.2(a) Act N° 27360)

Journalists:

The minimum wage for journalists is three times the general minimum wage rate. Journalist´s minimum wage is fixed in S/.1800 new soles per month. (Art.10 Act N° 25101)


Act n° 27986 on Domestic Workers Art.5
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector

Level


Minimum wage level(s) in national currency

S/.600.00 nuevos soles per month: From 1 December 2010 the sum will increase S/. 30.00 nuevos soles and from 1 February 2011 S/.20.00 nuevos soles.
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector Art.1

Last minimum wage update

10 November 2010
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector

In-kind allowances

Wages include compensation in cash or in kind received by a worker.
Supreme Decree 003-97 TR Law on Labour Productivity and Competitiveness Art.6

Rate of payment


» Monthly

Yes
Supreme Decree n° 011-2010-TR Increasing the Minimum Wages of the Workers from the Private Sector Art.1

Enforcement mechanisms


Labour inspection

Labour Inspection is a public service by the Ministry of Labour and Social Promotion, which aims to ensure compliance with legal or contractual provisions relating to employment, promotion and job training, safety and health work, in order to prevent or resolve conflicts or risks between workers and employers.
Legislative Decree N° 910, General Law on Work Inspection and Workers’ Defence Art.5

Fines in national currency for non-respect of legislation

Failure to comply with minimum wage legislation results in fines calculated on the basis of the tax unit reference index for the year when the offence took place.
Legislative Decree N° 910, General Law on Work Inspection and Workers’ Defence Art.19(3)
Supreme Decree N° 252-2010-EF Index Tax Unit
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Results generated on: 24th April 2014 at 22:50:16.
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