MercoPress. South Atlantic News Agency

Evolution of minimum wages in Latam: Argentina leads

Chile saw a 16% real increase in its minimum wage over the past 7 years, putting it in 5th place among Latin American countries. Argentina came in first, doubling its minimum wage since 2000, followed by Uruguay, which increased by 50%. Brazil and Ecuador took 4th and 5th place.

The findings are part of an economic study on the evolution of minimum wages in the region, to be published at year?s end by the Economic Commission for Latin America and the Caribbean. The minimum wage grew in all the countries studied save Mexico, where it experienced a slight decrease. According to Jurgen Weller, of ECLAC?s Economic Development Division, the reason for Chile?s slow development, in comparison with Argentina and Brazil, is a "more cautious policy that takes a less dynamic economy into account." Tomas Flores, an economist from the Freedom and Development Institute, added that ?you have to be careful making that comparison, (since) there is lower compliance with the law in surrounding countries? According to Flores, this can cause the statistics to be misleading, suggesting higher salaries than those that people actually receive. Adjusting for the currency values of each country, Paraguay has the highest minimum wage, at 860 US dollars per month, more than double the value of Chile?s minimum wage. Following Paraguay are Argentina, Colombia and Chile. But according to Weller, Paraguay?s minimum wage isn?t strictly followed, especially by small businesses, and 860 per month is closer to ?a middle-class salary? than to an actual minimum wage. Chile raised its monthly minimum wage from $135,000 (approx 259 US dollars) to $144,000 (approx 276 US dollars) per month late last Thursday with the change becoming effective on July 1. The Santiago Times