Narayan AmmachchiGuatemala is considering a significant 10% increase in its minimum wage, aiming to bolster the purchasing power of its workforce amidst rising living costs.
The proposal, which is currently under discussion, awaits the final decision of President Bernardo Arévalo, who is expected to announce his verdict by December 28.
If implemented, the wage hike will not be uniform across the country. Workers in the capital city are set to receive a monthly increase of US$43, while those in other regions may see their wages rise by up to US$41.
Currently, the minimum monthly wage in the department of Guatemala stands at approximately US$400, varying across agricultural and non-agricultural sectors.
In addition to the government’s proposal, a prominent labor union has suggested a more modest wage increase of US$25. This comes after a 6.6% hike in 2024 aimed at mitigating inflationary pressures.
The proposed adjustments are expected to address a decline in workers’ purchasing power, which has dropped between 6% and 13% in recent years.
Should the 10% increase gain approval, the revised minimum wage will take effect on January 1, 2025.
Across Latin America, Costa Rica and Uruguay currently lead with the highest minimum wages, at US$600 and US$540, respectively. Guatemala ranks fifth, with a minimum wage of US$403, following Chile (US$475) and Ecuador (US$450), according to data from Mercopress.
Add comment