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This will be the minimum wages in Latin America for 2022

The continent is waiting for the announcement of minimum wages for next year, as it is a key decision for the economy. Learn about some of the Latin American salaries for 2022 .

Person doing accounts with a calculator

By 2022 this is a more sensitive issue than normal, as most economies are hard hit by the COVID-19 crisis. Photo: Freepik

LatinAmerican Post | María Fernanda Ramirez Ramos

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Leer en español: Así serán los salarios mínimos en Latinoamérica para el 2022

With the arrival of a new year, one of the most important decisions that countries make is the definition of the minimum wage for the following year. By 2022 this is a more sensitive issue than normal, as most economies are hard hit by the COVID-19 crisis.

In general, the decision on the minimum wage is established through a government negotiation with different economic sectors: experts, employers, and unions . However, the slow reactivation of the economy in the continent establishes two fundamental problems: on the one hand, companies are hit and the economy has staggered, and on the other, poverty figures tend to rise.

For these reasons, governments must seek a balance between promoting reactivation, giving guarantees to companies, and favoring the population, especially the most vulnerable, to avoid the growth of poverty.

The minimum wage in Mexico 2022

The General Government of Mexico approved a 22% increase in the minimum wage. In other words, it will be 172.87 Mexican pesos per day, which is approximately 8.27 dollars. However, in Mexico there is a particularity, the northern zone has a different economic level, so there the minimum wage will be 260.34 Mexican pesos or 12.45 dollars.

The minimum wage in Colombia 2022

On Sunday, December 12, the president of Colombia, Iván Duque, proposed an increase of 10.07% for the minimum wage, so that it reaches one million Colombian pesos, which represents around 257 dollars. After conversations with the unions, the proposal was accepted. In addition, a transportation aid was established for 117,172 Colombian pesos. In total, the workers will receive $ 286.

The minimum, vital and mobile salary in Argentina 2022

For several months, the Casa Rosada reported that there would be a 52.7% increase in the Minimum, Vital and Mobile Salary in Argentina, which has been implemented under a one-year progressive model, between March 2021 and March 2022. By February 2022, the increase will reach $ 33,000 for full-time workers who receive monthly payments that represent $ 324.

However, it is likely that after February a readjustment will have to be made, due to the serious inflation problems suffered by the Southern Cone country. To exemplify the situation, according to the National Institute of Statistics and Censuses , the interannual variation of the basic food basket, from October 2020 to October 2021, was 49.3%. In other words, from one year to the next the basic food basket was worth almost double.

Also read: What Is The Supply Chain Crisis And How Can Latam Profit From It?

The minimum wage in Ecuador 2022

On Monday, December 13, the president of Ecuador, Guillermo Lasso, announced an increase in the minimum wage of $ 25. Starting January, workers with this salary will receive $ 425. In fact, this is the largest increase in the last 8 years. However, the decision has caused discomfort in the businessmen, who in the negotiations had proposed an increase of around 5 to 7 dollars.

The minimum wage in Brazil 2022

Brazil's minimum wage has its peculiarities, because despite the fact that the Federal Government establishes the general wage, states such as São Paulo, Rio De Janeiro, Paraná, Santa Catarina or Rio Grande do Sul establish their own minimum wages. Although the official announcement has not been made to date, the estimates made based on the increase in the cost of living, taking into account the results of the National Consumer Price Index , indicate that the minimum wage will be close to $ 1,210 reais, that is, about $ 215.

The minimum wage in Chile 2022

In June, the Chilean Senate approved a 3.2 percent readjustment to the minimum wage, which brought it to 337,000 Chilean pesos, or $ 398, for workers between 18 and 65 years of age. However, the decision contemplates that in January 2022 a readjustment is made that will leave the salary between 345 thousand and 350 thousand Chilean pesos, which would translate to 406 and 412 dollars respectively.

The minimum wages in some Central American countries

In El Salvador, Costa Rica, Honduras and Nicaragua, the minimum wages are defined according to the activity carried out. El Salvador made increases in August of this year of 20%, to define salaries, which are between 8 and 12 dollars a day.

For its part, Costa Rica approved an increase of 2.09% to the minimum wage of the private sector for 2022, with extra specific increases for some sectors, which are divided according to the specialization of the tasks performed. In this way, salaries will range from 520 to 1,116 dollars.