Employers and Government Remain Deadlocked Over Minimum Wage Adjustment in Paraguay

Representatives of workers, employers, and the Ministry of Labor failed to reach a consensus on the calculation of the annual adjustment to the legal minimum wage (SML) during a debate on the program Políticamente Yncorrecto. Minister Mónica Recalde argued for considering multiple variables, while the Paraguayan Industrial Union (UIP) and workers insisted on specific legal criteria.

The impasse over the adjustment of the legal minimum wage (SML) in Paraguay became evident during the debate program Políticamente Yncorrecto, where representatives of workers, employers, and the Ministry of Labor, Employment and Social Security (MTESS) presented divergent positions.

Labor Minister Mónica Recalde argued that, in addition to the consumer price index (CPI), it is necessary to consider other variables such as productivity, market development, and other components. According to her, these indicators should be negotiated within the National Council of Minimum Wages (Conasam) without the need to amend the law. “If we are not honest and set it only by the CPI, without clarification from the parties so that discussion can take place, we will be back at the same point,” she said. Recalde highlighted that Article 250 of the law, which deals with regional wage issues and the economic situation of families, has never been analyzed.

In an opposing position, Enrique Duarte, president of the Paraguayan Industrial Union (UIP), reiterated that the adjustment should follow the inflation percentage rule stipulated in the law. “The law is very clear. Article 252 perfectly establishes the composition of Conasam, Article 254 defines the bases for investigating the adjustment, and Article 255 specifically deals with the adjustment technique. The law is explicit. We are not going to look for labyrinths,” he declared.

Bernardo Rojas, a workers' representative, cited the technical report by economist Raúl Monte Domeq, presented to Conasam, which points to a loss of purchasing power of the salary of 2.3% (equivalent to G. 647,021). “The minimum wage must cover five or six components established by law: health, education, food, clothing, communication. The salary we earn today does not cover that,” he argued.

Separately, the MTESS published Resolution No. 462/2026, which approves the regulation for the mandatory implementation of Labor Information Books in digital format, as part of the modernization of labor records. The requirement for the 2025 fiscal period will be gradual, between August 17 and 28, 2026, depending on the employer registration number. All employers registered in the Employer Worker Registry with salaried staff must monthly record data such as worker entry, remuneration, working hours, vacations, year-end bonus, and other working conditions. Non-compliance will be punished with fines of 10 to 30 daily minimum wages, according to Article 385 of the Labor Code.