Lima, Peru – Peru's Minister of Economy and Finance, José Arista, indicated on Monday that a minimum wage increase is likely to be announced before the end of the year. While he did not specify the exact amount of the potential increase, he emphasized that the government is carefully considering various factors.

"The announcement will be made in the coming days," Arista stated. "Generally speaking, the minimum wage should be below the market equilibrium."

The minister noted that the government is evaluating several key factors, including the financial capacity of micro, small, and medium-sized enterprises (MSMEs), which are significant job creators, the government's ability to discourage informal employment in Peru, as well as the aspirations of workers and the capabilities of employers.

"These are the four variables that we are evaluating and weighing," he said.

Government Aligns with Private Sector on Oil Lot Auctions

Separately, Arista affirmed that the government's position aligns with that of the National Society of Mining, Petroleum, and Energy (SNMPE) regarding the auction of Petroperú's oil lots.

"The Minister of Energy and Mines has already spoken with the president of Petroperú two or three days ago, and we have agreed that the position of the SNMPE will be respected," he asserted.

Arista emphasized the need for investment in Peru's economy, arguing that it would be counterproductive to grant an oil lot to a company facing severe liquidity problems. "The only way to attract investment is by giving (the oil lots) to the private sector," he stated.