Increase of the 20% to the minimum wage in El Salvador and prices of products and services skyrocket

Photo: courtesy Press Secretary, GOES.
Editorial Dept. Voz de la Diaspora 

From 1 August, the increase in the 20% to the minimum wage that has not been adjusted since the year 2018 and is expected to benefit more than 580 thousand workers in the commerce sector, industry, service and agriculture.

With only the announcement by the government authorities, the price escalation of products and services began, which together with the rise in the cost of fuels and variations in international economic activity has made the family economy more expensive..

Photo: courtesy Press Secretary, GOES.

According to the Central Reserve Bank (BCR), the consumer price index (IPC) rose a 0.03 last May and the accumulated reached 2.36 in the first five months of 2021.

According to the new minimum wage table, employees in the commerce and services area will earn more $304.17 to receive $365 and in the maquila sector, where they were paid $295.30 will happen to $354.36 per month.

While, agricultural workers, that they receive between $202.88 Y $227,22, they will receive between $243.45 Y $272,66.

Photo: courtesy Press Secretary, GOES.

To try to reduce the impact of increasing the 20% The Government of El Salvador will deliver, through the Development Bank of El Salvador (Bandsal), a subsidy to some 13,500 micro and small enterprises to cover the increase by 12 months.

Another strategy used by the Government is the distribution of 2.1 million food packages for the same number of households nationwide, with the purpose of trying to avoid the increase in prices in products of the basic basket and to mitigate the impact of the family economy.

Price verification by the Consumer Defender has also been intensified, But despite the measures, the prices of products and services have had a significant increase in El Salvador.