RIO DE JANEIRO, BRAZIL – Brazil has the second lowest value in South America; a CNN survey shows how much the minimum wage is today in several countries of the region.
The minimum wage is understood as the minimum amount that a worker must be paid, in a mandatory manner, for the activities they have performed in a certain period, according to the International Labor Organization (ILO) definition.
“The purpose of setting the minimum wage is to protect workers against unduly low pay,” the ILO explains.
In addition, the minimum wage can be a social policy tool to reduce poverty and inequality. It cannot be reduced “neither by collective agreement nor by individual agreement,” the body adds.
CNN surveyed the legal salary floor in the main Latin American countries. Considering the nations that set the national minimum in monthly terms, the highest figure is in Panama, where the average minimum wage is now equivalent to US$625.
The lowest is in Venezuela, where the local monthly minimum wage of 7,000 bolivars is currently equivalent to US$1.74.
Other countries, such as Mexico and neighboring Central American countries, set the floor in daily values.
In Brazil, the dollar value of the minimum wage is US$213.17 per month. It is the second-lowest among South America’s neighbors, after Venezuela – a list that includes Argentina (US$298.03), Chile (from US$282.56 to US$438.36), Paraguay (US$330.81), and Bolivia (US$313.96).
The values only consider the conversion of the local salary into dollars. They do not think, for example, the purchasing power, that is, the purchasing capacity of each US$ 1 in relation to the local cost level.
Countries with currencies that have devalued too much against the dollar in relation to others, such as Brazil in 2021, end up seeing their minimum wage losing positions in the comparison made in international currency.
See below the list of minimum wages currently practiced around Latin America:
MEXICO
In the country, the minimum wage is divided into two geographical regions:
Northern Border Free Zone (43 municipalities in six states: Baja California, Sonora, Chihuahua, Coahuila, Nuevo León and Tamaulipas): US$10.02 per day
Rest of the country: US$ 6.65 per day
However, the Mexican minimum will be readjusted in 2022, as announced on Wednesday by President Andrés Manuel López Obrador and the National Minimum Wage Commission (Conasami).
The minimum wage in Mexico will increase by 22% in both areas starting January 1, 2022.
Therefore, it will be as follows:
Northern Border Free Zone: US$12.23 per day
Rest of the country: US$8.12 per day
GUATEMALA
There, the minimum wage is divided by economic activities and ranges from US$10.96 to US$12 per day:
Non-agricultural: US$12 per day
Agricultural: US$ 11.64 per day
Exporter: US$ 10.96 per day
BELIZE
John Briceño, Prime Minister of Belize, noted in his budget speech for the fiscal year 2021/2022 that the minimum wage is US$5 per hour. What kind of dollars is not specified. In Belize, the currency is the Belizean dollar.
EL SALVADOR
On August 1, El Salvador’s new minimum wage figures went into effect. They are divided into six sectors, ranging from US$8 to US$12 per day.
See the daily minimum values:
Coffee harvesting: US$8
The agricultural sector, fishing, and other agricultural activities: US$ 8
Coffee Benefit: US$ 8.96
Cane harvesting: US$ 8.96
Textile and clothing machinery: US$11.81
Trade, services, industry, sugar mills, and other agribusiness activities: US$ 12
HONDURAS
The new minimum wage values in Honduras came into effect on July 1. They are divided into 11 branches of economic activity and increase according to the number of workers per company. The range is between US$9.78 and US$18.57 per day.
COSTA RICA
Costa Rica’s minimum wages for 2021 are broken down by type of worker. The government sets some salaries per typical day (ranging from US$17.06 to US$34.58 per day) and others per month (ranging from US$511.86 to US$1,093.34 per month):
Unskilled workers US$511.86 per month
Worker in semi-skilled occupation (generic): US$550.01 per month
Skilled occupation worker (generic): US$575.88 per month
Middle technician in diversified education: US$603.48 per month
Skilled occupation worker (generic): US$ 650.31 per month
Higher Education Technician: US$743.73 per month
Higher Education Diploma: US$803.26 per month
University degree: US$911.08 per month
University degree: US$ 1,093.34 per month
PANAMA
The minimum wage in Panama averages US$625 per month and is negotiated every two years. The value went into effect in January 2020. In January 2022, it must be readjusted, according to the law.
ARGENTINA
Since September 1, the minimum wage in Argentina has been US$298.03 per month.
CHILE
The minimum wage in Chile is divided into three groups and is monthly:
Workers over 18 and up to 65 years old: US$ 438.36
Workers under 18 and over 65: US$ 327.01
Minimum monthly payments for non-wage purposes: US$282.56
BRAZIL
In the case of Brazil, the minimum wage for 2021, effective since January, is US$213.17 per month. In 2022, the national floor should be readjusted by 10%, in line with inflation.
URUGUAY
On January 1, 2021, the national minimum wage in Uruguay became US$421.98 per month.
BOLIVIA
According to Supreme Decree 4501 of January 1, 2021, the national minimum wage in Bolivia is US$313.96 per month for both public and private sector workers.
PERU
The minimum wage in Peru, known as minimum living wage (RMV), is US$227.54 per month (provided the worker works an eight-hour day or 48-hour week).
PARAGUAY
Since the adjustment that went into effect on July 1 of this year, the minimum wage in Paraguay is US$330.81 per month.
ECUADOR
The minimum wage that Ecuador has set for 2021 is US$400 per month. There, the minimum is called the unified basic wage (SBU).
COLOMBIA
The Colombian government has set the minimum wage for 2021 at US$242.02 per month, plus a transportation allowance of US$28.36.
VENEZUELA
According to Freddy Ñáñez, vice president of communication, culture, and tourism in Venezuela, the minimum wage in the country has been set at 7 million bolivars, which at the current exchange rate is US$1.74 per month.
PUERTO RICO
According to Puerto Rico’s Department of Labor and Human Resources, the minimum wage in the country is US$7.25 per hour.
CUBA
Granma, Cuba’s official media outlet, reported that the island’s minimum wage in 2021 is US$87.48 per month.
DOMINICAN REPUBLIC
In the Dominican Republic, minimum wage amounts vary according to the company’s size. In July, the minimums were set at the following amounts per month:
Large companies: US$351.91
Medium-sized companies: US$325.51
Small companies: US$218.18
Micro enterprises: US$202.35
With information from CNN Español