The debate over the adjustment of the legal minimum wage (SML) in Paraguay entered a new chapter this Monday (18). While the government and social sectors discuss the need to change the calculation formula — currently based on the annual variation of the Consumer Price Index (CPI) — the Minister of Industry and Commerce (MIC), Marco Riquelme, argued that any change should only take effect from 2027.
“If there is an initiative to change the formula, it is welcome, but the ideal is for it to be applied next year, so that industries can include it in their projections and there is no surprise impact from one month to the next,” said Riquelme. The minister highlighted the importance of predictability for investors, noting that companies have already made their plans based on the current rules, which have been in place for about a decade.
Currently, the SML is G. 2,899,048. With the CPI variation in the last adjustment around 2.4%, and considering the months still remaining for the full calculation, the increase is estimated to be approximately G. 87,000 — a value considered insufficient by unions and social organizations, given the rise in prices, especially of food.
The National Council of Minimum Wages (Conasam) will meet again this Wednesday (20) to advance the study of the adjustment. At the previous meeting, workers presented a proposal for a 20% increase, based on a cost-of-living survey that, according to them, already exceeds G. 7.6 million. The employer sector, on the other hand, defends maintaining the current formula based on the CPI and states that, according to its studies, the worker can survive on the current minimum wage.