Paraguay Minimum Wage Talks Stall; Government Sets June 15 Deadline for Decision

Paraguay's tripartite commission on minimum wage ended without agreement, as unions push for a 22% increase and employers insist on inflation-only adjustment. The government aims to finalize a recommendation by June 15.

Reajuste do salário mínimo no Paraguai será definido antes de 15 de junho, sem consenso ainda
Reajuste do salário mínimo no Paraguai será definido antes de 15 de junho, sem consenso ainda

Negotiations over Paraguay's minimum wage adjustment remain deadlocked after a meeting of the National Minimum Wage Commission (Conasam) on May 15, 2026, failed to produce a consensus, according to a report by El Nacional. The tripartite body, comprising government, business, and labor representatives, will continue discussions in the coming days, with the Ministry of Labor pledging a definitive recommendation to the Executive by June 15.

Deputy Labor Minister César Segovia stated after the meeting, "Our intention is that before June 15 we can have a definitive position regarding the recommendation to be given to the Executive on the adjustment." He added that the business sector would formally respond to the union's proposal for a 22% increase.

Labor unions, led by Bernardo Rojas, are demanding a raise of approximately 647,000 guaraníes on the current minimum wage, citing a loss of purchasing power. "That doesn't hurt the employers at all; it's not much," Rojas said, while also noting that the government is analyzing a proposal to decouple the minimum wage from tax indexes.

Business representative Enrique Vidal Lovera reiterated the employers' stance that any adjustment must strictly follow the legally mandated mechanism based on accumulated interannual inflation. The impasse leaves the final percentage uncertain, as workers seek recovery of real wages and businesses warn of economic strain from a larger-than-legal increase.