Peru’s minimum wage system, locally known as the Remuneración Mínima Vital (RMV), continues to balance workers’ rights with economic growth in the country.

While the country does not operate a region-specific minimum wage law, its minimum wage policy reflects its commitment to reducing poverty and maintaining business competitiveness across diverse industries.

If you are an international business looking to establish operations in Peru, you can check out our comprehensive resources about doing business in Peru. 

Here’s What to Know About the Minimum Wage in Peru

As of January 2026, the national minimum wage in Peru stands at PEN 1,130 per month (approximately $305 USD).

This rate has been in effect since January 1, 2025, following a 10% increase from the previous long-standing rate of PEN 1,025. The adjustment was implemented via government decree to help workers offset the rising cost of living and inflation that characterized the preceding years.

How the Minimum Wage is Set and Reviewed in Peru

Peru’s minimum wage is determined through a process that involves several stakeholders and a structured approach.

The National Labor Council and a Special Commission on Productivity and Minimum Wage participate in a discussion with both employers and workers to agree on a minimum wage rate. After which, the Ministry of Labor and Employment Promotion (MTPE) oversees the minimum wage review process.

However, if these bodies fail to reach a consensus, the government can act unilaterally as it did with the recent increase.

The committee considers:

  • Economic growth and productivity
  • Employment levels and labor market conditions
  • Inflation and cost of living
  • Regional economy
  • Business competitiveness

Unlike some countries that review their minimum wage annually, Peru’s minimum wage adjustment is inconsistent, and the last significant change was made several years ago.

Regional or Sector Variations

Unlike other countries, Peru maintains a national minimum wage that applies uniformly across all regions in the country. This uniform approach makes it easy for employers to administer, but it creates a challenge for workers since the cost of living differs across the country.

While there are no formal industry-specific minimum wage rates, certain sectors have developed their own compensation structures:

  • Mining Sector: Miners in Peru in Peru are paid beyond the minimum wage rate and often receive a share of company profits, up to 18 times their base monthly salary.
  • Public Sector: Government employees often have different pay scales that exceed the minimum wage rates.
  • Export Industries: Companies in this sector frequently pay above minimum wage to attract and retain skilled workers.

Some collective bargaining agreements may also establish higher wages, but union membership in Peru is relatively low compared to other Latin American countries.

Cost of Living vs. Minimum Wage Reality

Although Peru’s minimum wage was increased to PEN 1,130 ($305) per month, the actual living costs remain expensive for workers in urban areas. 

Workers often have to share housing with multiple family members or roommates, take on additional part-time work, or rely on family to fully cater for their basic expenses.

However, in rural areas, the minimum wage provides greater purchasing power because housing, food, and transportation costs are significantly lower.

Employer Obligations, Social Benefits, and Penalties for Non-Compliance

Employers in Peru must provide various mandatory benefits and protections, not just the minimum wage requirements. They are expected to offer employees several social benefits, like:

  • Annual Bonuses: Workers are entitled to two additional monthly salaries every year, one in July (Fiestas Patrias) and one in December (Christmas bonus).
  • Vacation Time: Employers must provide their employees with a mandatory 30 calendar days of paid vacation annually, after one year of service.
  • Social Security Contributions: Employers must contribute to Peru’s social security system (EsSalud), which provides healthcare coverage to workers.
  • Severance Pay: Workers who are dismissed without cause are entitled to compensation worth one and a half monthly salaries for each year of service.
  • Profit Sharing: Companies in certain sectors, like mining, must distribute a portion of their profits to employees.

Peru also enforces minimum wage compliance through the Ministry of Labor and Employment Promotion (MTPE). They conduct routine inspections across various industries to ensure all employers comply with the labor laws.

Failure to comply can attract:

  • Fines ranging from PEN 16, 585 – PEN 75, 863 ($4600 – $21, 000)
  • Back payment of wages with interest
  • Public disclosure of violations
  • Temporary business closure in severe cases

Many workers in Peru earn less than the standard minimum wage since they are in informal employment.  This also means that a significant portion of workers may not receive minimum wage protections.

Workers are permitted to register their complaints to the MTPE through calls and online reporting systems, but many informal workers are reluctant to report minimum wage violations due to fear of job loss.

Simplify Wage Compliance in Peru with Remote People

Companies operating in Peru must stay compliant with minimum wage and employment regulations by paying attention to recent changes or updates. 

Remote People’s recruitment services in Peru can help you recruit and hire qualified local talent while maintaining compliance with labor laws. We will handle everything from complex labor regulations to payroll management and compliance requirements.

Employers only need to worry about focusing on their main business operations while we handle the rest. Our  Global Payroll Calculator tool can also help businesses estimate total employment costs, including minimum wage requirements, social contributions, and mandatory benefits.

Reach out to partner with our EOR services today!