Brazil’s minimum wage is lower than that of Bolivia and Paraguay; in Venezuela it’s $1

The minimum wage is understood as the minimum amount that must be paid to a worker, obligatorily, for the activities that he/she has performed in a certain period of time, according to the definition of the International Labor Organization (ILO).

“The purpose of establishing the minimum wage is to protect workers against the payment of unduly low wages”, explains the ILO.

Furthermore, the minimum wage can be a social policy tool aimed at reducing poverty and inequality. It cannot be reduced “neither by virtue of collective agreement nor individual agreement”, adds the body.

A CNN carried out a survey of the legal base salary in the main countries of Latin America. Considered the nations that set the national minimum in monthly terms, the highest value is in Panama, where the average minimum wage is today equivalent to $625.

The smallest is in Venezuela, where the 7,000 bolivars of the local monthly minimum wage equals $1.74 today.

Other countries, such as Mexico and neighbors in Central America, set the floor on daily values.

In Brazil, the minimum wage in dollars is US$ 213.17 per month. It is the second smallest among South America’s neighbors, after Venezuela – a list that includes Argentina (US$298.03), Chile (US$282.56 to US$438.36), Paraguay (US$330, 81) and Bolivia (US$313.96).

The values ​​only take into account the conversion of local salary to the dollar. They do not consider, for example, purchasing power, that is, the purchasing power of each US$ 1 in relation to the level of local costs.

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 geographic 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: $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 22% in both areas as of January 1, 2022. So it will look like this:

• North Border Free Zone: $12.23 per day
• Rest of the country: $8.12 per day

Guatemala

There, the minimum wage is divided by economic activities and varies from US$ 10.96 to US$ 12 per day:

• Non-agricultural: $12 per day
• Agricultural: $11.64 per day
• Exporter: $10.96 per day

Belize

John Briceño, Prime Minister of Belize, noted in his speech on the budget for 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.

The Savior

On August 1, El Salvador’s new minimum wage values ​​took effect. They are divided into six sectors, ranging from $8 to $12 per day.

See the daily minimum values:

• Coffee collection: US$ 8
• Agricultural sector, fishing and other agricultural activities: US$ 8
• Benefit of coffee: US$ 8,96
• Sugarcane harvest: US$ 8,96
• Textile and clothing machine: US$ 11,81
• Commerce, services, industry, sugar mills and other agribusiness activities: US$ 12

Honduras

The new minimum wage values ​​in Honduras took effect on 1 July. 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.

The following numbers are minimum wages per day:

• Agriculture, forestry, hunting and fishing
  From 1 to 10 workers: US$ 9.78
  11 to 50: $ 10.32
  51 to 150: $ 11.09
  151 and above: US$ 11.88
• Mining and Quarries
  From 1 to 10 workers: US$ 13.37
  11 to 50: $ 13.77
  51 to 150: $ 15.93
  151 and above: US$ 17.83
• Transformation industry
  From 1 to 10 workers: $13.12
  11 to 50: $ 13.96
  51 to 150: US $ 16.15
  151 and above: $18.08
• Electricity, gas and water
  1 to 10 workers: $13.80
  11 to 50: US $ 14.22
  51 to 150: US $ 16.44
  151 and more: $18.41
• Construction
  1 to 10 workers: $13.55
  11 to 50: $ 13.96
  51 to 150: US $ 16.15
  151 and above: $18.08
• Wholesale and retail trade
  1 to 10 workers: $13.55
  11 to 50: $ 13.96
  51 to 150: US $ 16.15
  151 and above: $18.08
• Restaurants and Hotels
  1 to 10 workers: $13.55
  11 to 50: $ 13.96
  51 to 150: $ 16
  151 and above: $17.41
• Storage and transport communications
  From 1 to 10 workers: $13.68
  11 to 50: US $ 14.09
  51 to 150: $ 16.30
  151 and above: $18.24
• Financial establishments, real estate and business services
  1 to 10 workers: $13.92
  11 to 50: US $ 14.34
  51 to 150: $ 16.59
  151 and above: $18.57
• Community, social and personal services, safety and cleanliness
  1 to 10 workers: $13.31
  11 to 50: US $ 13.71
  51 to 150: US $ 15.86
  151 and above: $17.75
• hospital activities
  1 to 10 workers: $13.31
  11 to 50: US $ 13.71
  51 to 150: $ 15.67
  151 and over: $17.21

Nicaragua

The new minimum wage values ​​have been in force in Nicaragua since March 1st, divided into 10 sectors in bands ranging from $ 4.41 to $ 9.37 per day.

See the minimum values ​​per day:

• Agricultural: US $ 4.10
• Micro and small national craft and tourism industry: US$ 4.41
• Central and municipal government: US$ 5.22
• Manufacturing Industry: $5.63
• Social and Personal Communication Services: $5.87
• Pesca: US$ 6,37
• Industries subject to taxation: $6.57
• Mines and quarries: US$7.52
• Electricity and water; commerce, restaurants and hotels; transportation, storage and communications: $7.68
• Construction, financial establishments and insurance: US$ 9.37

Costa Rica

Costa Rica’s minimum wages for 2021 are divided by type of worker. The government sets some normal daily wages (varying from $ 17.06 to $ 34.58 per day) and others per month (ranging from $511.86 to $1,093.34 per month):

• Worker in unskilled occupation: $17.06 per normal day
• Worker in semi-skilled occupation: US$ 18.55 per normal day
• Skilled occupation worker: US$ 18.97 per normal day
• Specialized occupation worker: US$ 22.28 per normal day
• Worker with greater specialization: US$ 34.58 per normal day
• Worker in unskilled occupation (generic): 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
• High School Technician in Diversified Education: $603.48 per month
• Worker in specialized occupation (generic): US$ 650.31 per month
• Higher Education Technician: US$743.73 per month
• Higher Education Diploma: US$803.26 per month
• Bachelor of University: US$911.08 per month
• University degree: $1,093.34 per month

Panama

The minimum wage in Panama is, on average, $625 per month and is traded every two years. The value came into effect in January 2020. In January 2022, it must be readjusted, according to the law.

Argentina

Since September 1st, the minimum wage in Argentina has been $298.03 per month

Chile

The minimum wage in Chile is divided into three groups and is monthly:

• Workers over 18 years old and up to 65 years old: US$ 438,36
• Workers under 18 and over 65: US$ 327,01
• Minimum monthly payment for non-compensatory purposes: US$ 282,56

Brazil

In the case of Brazil, the minimum wage for 2021, effective since January, is $213.17 per month. In 2022, the national floor must be readjusted by 10%, following inflation.

Uruguay

On January 1, 2021, the national minimum wage in Uruguay was changed to $421.98 per month.

Bolivia

According to Supreme Decree 4501 of January 1, 2021, the national minimum wage in Bolivia is $313.96 per month, for both public and private sector workers.

Peru

The minimum wage in Peru, known as the minimum vital wage (RMV), is $227.54 per month (provided the worker works eight hours a day or 48 hours a week).

Paraguay

Since the readjustment that took effect on July 1 this year, the minimum wage in Paraguay is US$ 330,81 a month.

Ecuador

The minimum wage that Ecuador has set for 2021 is $400 per month. There, the minimum is called the unified basic wage (SBU).

Colombia

The Colombian government established the minimum wage for 2021 in US$ 242,02 per month, plus a transportation allowance of US$28.36.

Venezuela

According to Freddy Ñáñez, vice president of the communication, culture and tourism sector in Venezuela, the minimum wage in the country was set at 7 million bolivars, which, at the current exchange rate, is $1.74 per month.

Puerto Rico

According to the Puerto Rico Department of Labor and Human Resources, the minimum wage in the country is US $ 7.25 per hour.

Cuba

Granma, Cuba’s official media, reported that the island’s minimum wage in 2021 is $87.48 per month.

Dominican Republic

In the Dominican Republic, minimum wage values ​​vary according to the size of the company. In July, the minimums were established at the following values, per month:

• Large companies: $351.91
• Midsize companies: $325.51
• Small Businesses: $218.18
• Microenterprises: US$ 202.35

*With information from CNN Brasil Business