President Santiago Peña announced on Wednesday, June 17, a 5% increase in the minimum wage, doubling the percentage that would correspond to the accumulated inflation of the past 12 months, which was 2.4%. As a result, the minimum wage will rise from the current G. 2,899,048 to approximately G. 3,044,000, representing an increase of about G. 144,952.
The decision came after the National Minimum Wage Council (Conasam) — a tripartite body composed of government, employer, and worker representatives — ended its sessions without reaching a consensus. Labor unions demanded an increase of between 20% and 22%, equivalent to about G. 547,000, arguing that the minimum wage has lost purchasing power over the years. Meanwhile, the business sector insisted that the adjustment be strictly limited to the variation of the Consumer Price Index (CPI) measured by the Central Bank of Paraguay.
In a speech during the presentation of his management report before the National Republican Association (ANR), Peña justified the decision by stating that an increase based solely on inflation would be far too low for working families. The president maintained that the 5% rate is balanced and does not jeopardize the country's macroeconomic stability.
The president argued that although the social protection network has strengthened over the past three years, the benefits have not reached all Paraguayans equally. "Those Paraguayans with higher incomes have seen their incomes grow, but a large majority of Paraguayans have not seen their incomes increase," he said.
The lack of agreement within Conasam led the body to recommend to the Executive a "balanced wage adjustment," considering not only the CPI but also other economic and social factors analyzed over a month of meetings. Conasam's president, Jorge Rivas, highlighted that the process included studies on the historical evolution of the minimum wage since the 1990s, with support from the Labor Observatory of the Ministry of Labor.
On the union side, the reaction was one of rejection. The Classist and Combative Current (CCC) labeled the 5% increase as a "scam" and a "mockery" of the working class. The organization stated that the new amount "does not even cover the cost of three kilos of meat" and presented its own studies showing that the real cost of living for the monthly sustenance of a Paraguayan household reaches G. 7,614,000. The CCC called for street protests to denounce the decree and demand a fair wage adjustment.
Bernardo Rojas, representative of CUT-A, maintained the sector's position of not yielding on the 20% demand and criticized Conasam as an institution "without much value" in its current form, advocating for a deep legal reform to turn it into a true national wage commission.
On the employers' side, representative Enrique Vidal Lovera defended strict compliance with current legislation, which ties the adjustment to the CPI, and questioned the consistency of the study presented by the unions for using 1989 as the historical baseline.
Former Minister of Labor and current vice president of Asomipymes, Carla Bacigalupo, proposed that the debate go beyond the percentage increase and include structural changes in wage policy, such as unlinking the minimum wage from other economic variables — since, according to her, automatic adjustments impact everything from court fees to the General State Budget, generating an "inflationary spiral."
The Executive Branch is expected to formalize the adjustment through a presidential decree between June 19 and 20, establishing the new minimum wage that will apply nationwide starting July 1. After the IPS deduction, estimated at about G. 273,000, the net amount will be close to G. 2,767,000.
Update - Jun 19, 2026, 7:59 AM
President Santiago Peña announced on Wednesday a 5% adjustment to the minimum wage, doubling the percentage that would correspond to the cumulative inflation of the past 12 months, which stands at 2.4% according to the Consumer Price Index (CPI) measured by Paraguay's Central Bank. With the increase, the minimum wage will rise from G. 2,899,048 to approximately G. 3,044,000 per month, representing an increase of about G. 144,952. The measure takes effect on July 1.
The decision came after the National Minimum Wage Council (Conasam) concluded its sessions without reaching a consensus among the parties. Workers' representatives maintained their demand for a 20% increase, equivalent to approximately G. 547,000, citing the historical loss of purchasing power. The business sector, in turn, advocated for a strictly legal approach tied to the CPI variation, which would result in an adjustment of approximately G. 69,577.
On his social media, Peña stated that the Government carefully evaluated the positions of all sectors to make a "responsible and balanced decision." "A number that is clearly very low for the working class," the president said while justifying the doubling of the percentage. He added that the 5% increase does not jeopardize the country's macroeconomic stability and aims to restore some purchasing power to working families.
The Minister of Labor, Employment, and Social Security, Mónica Recalde, had earlier indicated that the Executive was considering an intermediate alternative. She explained that the Ministry of Labor prepared a technical report with legal grounds that would allow the Executive Branch to set an adjustment higher than the CPI variation result, also taking into account economic and social factors.
The president of Conasam, Jorge Rivas, confirmed that the technical body recommended a "balanced wage adjustment," considering not only inflation but also other factors such as the historical evolution of the minimum wage since the 1990s. Rivas highlighted the development of internal regulations and technical memoranda as institutional advances in the process.
The Corriente Clasista y Combativa (CCC) reacted with outrage to the announcement, calling the 5% increase a "scam" and a "mockery" of the working class. The union organization argues that the new amount bears no relation to the actual cost of living in Paraguay and presented its own studies according to which the monthly cost of a Paraguayan household reaches G. 7,614,000. The CCC called for mobilizations to reject the presidential decree, which is expected to be formalized between June 19 and 20.
Economists such as Amílcar Ferreira noted that the adjustment applies only to those earning the minimum wage, although it could impact certain costs for businesses and consumers. After the IPS discount, estimated at approximately G. 273,000, the net amount would be close to G. 2,767,000.
Before the presidential announcement, former Minister of Labor and current vice-president of Asomipymes, Carla Bacigalupo, had proposed structural changes to the minimum wage calculation system, advocating for the de-indexation of the wage floor from other economic variables to avoid what she called an "inflationary spiral." According to her, today's minimum wage increase automatically raises court fees, the General National Budget, and various public sector salaries.