Minimum pay must enter into force on January 1, 2025, file is still in the hands of the Ministry of Labour, but must pass for analysis by President Bernardo Arévalo.
The government sector proposed 10% increase in the minimum wage for 2025, a position that was presented in the National Wage Commission (CNS) and whose decision is now in the hands of the President of the Republic, Bernardo Arévalo.
The Deputy Minister of Labour Administration of the Ministry of Labour (Mintrab), Damarys Nohemí Oliva, reported that the proposal of the government sector in the CNS was to increase the minimum wage by 10% for the year 2025, in the three activities of the two economic districts in which the minimum payment is currently divided.
This is the first time that the government as represented sector, in that commission, presents a proposal for a specific increase, he added to a civil servant.
Although the government had been requested through the Mintrab, information about its proposal, it was released in detail until Wednesday, October 30, during a summons made by the Vos bench in Congress.
The deputy minister and director of Labor Statistics of the Mintrab, Julio César Hernández, reported that this is a technical proposal to respond to the behavior of several indicators, and is composed in this way: inflation, whose target is 4% per year; in addition to 3.5% of economic growth by 2024; and they add 2.5% of annual recovery of the purchasing power of the minimum wage.
This is because the minimum wage has lost between 6% and 13% of purchasing power, if the impact of inflation is taken into account. These estimates were made with the Consumer Price Index (CPI) and base inflation as of December 2023.
The CNS delivered its report to the Minister of Labour, Miriam Roquel, on October 11. In addition, on Monday 14 he also presented him to the Guatemalan Institute of Social Security (IGSS) and the Monetary Board (JM) for these entities to analyze and issue opinions, which have 30 working days to send them.
Upon receiving the opinions, the minister must transfer the file to the President of the Republic, Bernardo Arévalo, who has the power to establish the minimum wage that will be in force from 1 January 2025.
The CNS is made up of three sectors, apart from the government, the employer sector also participates, of which Oliva confirmed that its proposal was that the minimum wage reach Q200 daily. Which would mean reaching Q6 thousand a month.
With regard to the employer sector, he said that they submitted a proposal for an increase of 3.07% for the economic constituency 1(CE1), made up of the department of Guatemala) and 1.5% for economic constituency 2 (CE2) composed of the other departments.
Orlando Blanco, a Vos parliamentarian, said the government’s proposal for a 10 percent increase and the employer sector from 1.5% to 3.07% is not enough to close the gap between the basic food basket and the minimum wage, and that an 18 percent increase would be needed.
Context
According to information from the employer sector on 15 October, the CNS for non-agricultural activities proposed an increase of 3.07 per cent in the two financial districts (Guatemala and other departments).
Although in the case of agricultural activities in the two constituencies they were maintained with the position of a zero increase.
Meanwhile in the maquila and export activities, the sector had mentioned that 3.07% had been proposed in the joints for the economic constituency 1, which is envisaged by the Department of Guatemala, and 1.50%, for constituency 2, which is part of the rest of the departments, but decided to equate them so that in the CNS for both regions 3.07% was proposed.
In the case of the employer sector, they confirmed reaching Q200 a day to cover the basic food basket and close the gap with the extended basket.
Six different minimum wages are currently applied as they are divided into two regions:
- Economic constituency 1 (CE1) composed of the department of Guatemala.
- Economic constituency 2 (EC2) which makes up the rest of the departments, and in turn these are classified into three activities such as agricultural, non-agricultural and maquilas and exports.
- The minimum wages in force in 2024 for agricultural and non-agricultural activities are between Q102 and Q110 per day and the monthly wages are around Q3 thousand 124 and Q3 thousand 384. And in maquilas and export activities, between Q95 and Q101 daily and Q2921 and Q3 thousand 093 per month, in all cases they must be added bonus Q250.
This article has been translated after first appearing in Prensa Libre