What variables were used for the new minimum wage?

A country’s economic growth is not the only variable he considered Ministry of Labor and Labor Development (Mitradel)to determine the new minimum wage in Panama, which will come into force in the second half of January.

Deff Paris Blaisdell, Mitradel director of planninghe commented that macroeconomic studies that were presented at 17 meetings where this issue was discussed were taken into account to determine this salary.

Likewise, the official said that other aspects were taken into account, such as Country’s Gross Domestic Product (GDP), Consumer Price Index (CPI), Basic Basket Analysis, etc.

Blaisdell noted that the analysis he presented International Labor Organization (ILO)which served as the frame of reference for this resolution.

“Economic growth was only one of the variables used to measure this new wage, there were many others”he asserted.

The official also referred to increase in informality in the country.

Also Another aspect dealt with by the employer sector was the facilitation of youth employment.

for his part, Eduardo Gil, from Convergencia Sindical, Through his account, X indicated that the minimum wage decree promulgated by Mitradel did not meet the aspirations of the working class.

He also stated that this adjustment does not allow for recovery loss of purchasing power, nor does it correct wage distortions.

“Laurentino Cortizo impoverished the working class”Gil argued.

It must be remembered that the new minimum wage has been increased by 4.5% in all small businesses, 6.0% for large companies and 7% for companies in the banana sector, this for the two regions established by decree.

It should be noted that the minimum wage, as a simple average, is $636.80, which is the highest minimum wage of $1,015.03 for aviation mechanics, and the lowest minimum wage of $341.12 for small businesses in agriculture, livestock, forestry, aquaculture and fisheries.