The Ministry of Labor, Employment and Social Security (MTESS) has implemented a new summary and abbreviated procedure for cases of non-compliance with the payment of the new minimum wage of G. 3,044,000, which came into effect on July 1st. The process, which has a maximum timeframe of 30 business days, aims to speed up the regularization of payments owed to workers.
According to Alejandra Garcete, Director of Social Security at the MTESS, once a violation is reported, the company will have up to 30 days to fully settle the amounts owed to employees. The special procedure maintains the employer's right to defense but seeks to quickly resolve irregularities related to the 5% salary adjustment.
Reports can be made in person at the ministry's central or regional offices, anonymously via WhatsApp at (0993) 308-100, or through the institution's official website. To date, the MTESS states that it has not received any formal complaints of non-compliance.
Companies that fail to pay the new wage floor are subject to fines of 10 to 30 minimum daily wages for each affected worker. The value of the minimum daily wage has increased to G. 117,077, while the daily salary for monthly employees is G. 101,467.
The MTESS warns that random inspections will begin in August across the national territory. The measure is supported by Executive Power Decree No. 6225 and the ministry's own Resolution No. 670/2026.
Economic analysts point out that the increase represents a challenge for micro, small, and medium-sized enterprises (MSMEs), which account for over 90% of the Paraguayan business sector. The concern is that higher labor costs will push up the prices of the basic food basket, reducing the purchasing power that the adjustment is intended to preserve.