Peru’s Keiko Fujimori Pledges 15% Minimum-Wage Rise in First Presidential Address

Peru Labour Policy

President Keiko Fujimori used her first address to the nation to pledge a 15% minimum-wage rise, a move that immediately opened a debate over labour costs and informality in Peru’s USD 280-billion economy.

A presidential debut with a wage pledge

Keiko Fujimori was sworn in as Peru’s constitutional president for the 2026–2031 term on Tuesday, 28 July 2026, before a bicameral Congress. She then delivered her primer mensaje a la Nación from the congressional hemicycle, laying out the economic and social priorities of her new government.

Among the most consequential announcements was a commitment to raise the Remuneración Mínima Vital (RMV) from 1,130 soles to 1,300 soles per month. The 170-sol increase represents a roughly 15% jump from the baseline that had been in force since January 2025.

What the Keiko Fujimori minimum-wage pledge means for workers

At current exchange rates, the new 1,300-sol floor translates to approximately USD 335–350 per month, up from roughly USD 290–300 under the previous 1,130-sol standard. For a full-time worker, that means an extra 170 soles, or about USD 44–46, in monthly pre-tax income.

The increase is the first major adjustment to the RMV since the Dina Boluarte administration set it at 1,130 soles via supreme decree in late 2024. Fujimori framed the rise as a step toward improving living standards, though she did not specify whether it would take effect in a single jump or through progressive stages.

Pensión 65 doubled and a MYPE bonus promised

The wage announcement was not the only social-spending pledge. Fujimori said her government would double the Pensión 65 subsidy, taking it from 350 soles to 700 soles bimonthly for older adults in extreme poverty.

That is a 100% nominal increase, lifting the per-beneficiary amount to roughly USD 180–190 every two months.

Alongside the wage hike, the president announced a one-off compensatory bonus for micro and small enterprises (MYPEs). She said the bono compensatorio would help smaller firms absorb higher labour costs and bring workers into the formal economy.

However, she avoided giving a timetable, a per-firm amount, or an estimate of the total fiscal cost.

The economist reaction: informality fears surface

Labour economist Jorge Carrillo Acosta warned that the 15% rise could have effects that go well beyond higher pay cheques. He calculated that for firms under the general labour regime, the increase adds more than 2,800 soles in annual cost per worker once associated contributions and benefits are included.

For businesses operating under the MYPE regime, the annual over-cost still exceeds 2,500 soles per worker. Carrillo Acosta cautioned that these additional burdens risk pushing more employers and workers into the informal sector, where Peru’s rate already hovers above 70%.

A policy shift that opens a debate

The wage pledge marks a notable shift from Fujimori‘s campaign discourse, which had centred on pro-business stability and fiscal discipline. La República characterised the announcement as one that “abre un debate económico,” given the absence of detailed implementation parameters.

No immediate market reaction was documented in the hours following the speech. Still, the combination of a higher wage floor, a doubled pension subsidy, and an undefined business bonus leaves investors watching for the government’s next move on fiscal rules and labour regulation.

What to watch across Latin America

Peru’s minimum-wage debate echoes similar tensions playing out in Colombia, Chile, and Mexico, where governments have pushed up wage floors while grappling with stubborn informality. For international investors with Peruvian exposure, the key variable is whether the MYPE bonus materialises as a credible offset or remains an unfunded promise.

The next milestone will be the government’s formal submission of the wage decree and any accompanying legislative package. Until the fine print on timing, eligibility, and fiscal cost emerges, the debate over whether this is a pro-worker boost or an informality trap will remain wide open.

Frequently Asked Questions

How much is Peru’s new minimum wage in US dollars?

President Keiko Fujimori pledged to raise the monthly minimum wage to 1,300 soles, which converts to approximately USD 335–350 at mid-2026 exchange rates. The previous floor of 1,130 soles equated to roughly USD 290–300 per month.

When did Keiko Fujimori become president of Peru?

Keiko Fujimori was sworn in as Peru’s constitutional president on 28 July 2026, the same day she delivered her first Mensaje a la Nación before the newly installed bicameral Congress. Her term runs through 2031.

What did economists say about the Peru minimum-wage increase?

Labour economist Jorge Carrillo Acosta estimated the rise would add more than 2,800 soles in annual per-worker costs for general-regime firms and over 2,500 soles for MYPE-regime businesses. He warned the increase could drive higher labour informality, especially among smaller enterprises.