Minimum Wage Fixing Machinery (Agriculture) Convention, 1951 (No. 99) - Peru (Ratification: 1960)

Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

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In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 and 99 (minimum wages) in the same comment.

The Committee notes the observations of the National Confederation of Private Business Institutions (CONFIEP), received on 31 August 2023, and the observations of the Autonomous Workers’ Confederation of Peru (CATP), received on 1 September 2023.

Legislation. The Committee notes that the Government refers in its report to the promulgation of Act No. 31110 on labour regulations in agriculture and incentives for the agriculture/irrigation, agri-export and agro-industrial sector, published on 31 December 2020, and its implementing regulations (Supreme Decree No. 005-2021-MIDAGRI, published on 30 March 2021).

Article 2 of Convention No. 99. Partial payment of minimum wages in kind. Further to its previous comments, the Committee notes the Government’s indication that in agriculture neither Act No. 31110 nor its Regulations establish particular provisions regarding the payment of wages in kind. The Government indicates that the general labour regulations on private activity are therefore applicable, in particular the Act on labour productivity and competitiveness, adopted by Supreme Decree No. 003-97-TR, and the single consolidated text of the Act on compensation for service time, adopted by Supreme Decree No. 001-97-TR. In this regard, the Committee notes the Government’s indication that sections 9, 13, 14 and 15 of the single consolidated text of the Act on compensation for service time establish guidelines relating to payment in kind. In particular, the Government refers to section 15, which stipulates that payment of remuneration in kind must stem from an agreement and the value shall be established by joint agreement or otherwise by the market value, and it indicates that the purpose of this is to avoid attaching an excessive value to benefits in kind, which ends up affecting workers’ income. In relation to its previous comments, the Committee notes that CONFIEP indicates that section 11 of Decree-Law No. 14222, on the valuation of remuneration in kind, was tacitly repealed by section 15 of the single consolidated text of the Act on compensation for service time. In this regard, the union indicates that none of these standards establishes limits on payment of wages in kind but merely establish rules for adequate valuation. CONFIEP adds that if wages in kind are determined by an agreement of the parties, such an agreement must be reasonable and take account of normal market prices, and over-valuation of wages in kind would entitle workers to make a judicial appeal to have the agreement established at the value in question declared null and void. The Committee requests the Government to provide information on the measures taken or envisaged to ensure that the payment of wages in kind, specifically in agriculture, is only partial and that: (i) allowances in kind are appropriate for the personal use and benefit of the worker and his family; and (ii) the value attributed to such allowances is fair and reasonable.

Article 3(1) and (2) of Convention No. 26 and Article 3(1), (2) and (3) of Convention No. 99. Minimum wage-fixing machinery.Participation of the social partners. Further to its previous comments, the Committee notes the Government’s indication that a minimum wage currently exists for all private labour activity and that the National Labour and Employment Promotion Council (CNTPE), through its Special Committee on Productivity and Minimum Wages, is the forum for dialogue on this matter. The Committee also notes the Government’s indication that the participation of agricultural workers in the CNTPE is manifested through the trade union confederations which make up the dialogue forum. The Committee further notes CONFIEP’s indication that the increase in the minimum wage was never a subject of consultation with workers and employers. The Committee also notes that the CATP in its observations expresses concern at the lack of institutionalization of the review of the minimum wage. In particular, the CATP indicates that there is no official mechanism adopted by law or decree of the executive authority relating to the fixing or periodic adjustment of the minimum wage. The Committee requests the Government to provide its comments with respect to the observations of CONFIEP and the CATP.

Article 4 of Conventions Nos 26 and 99. System of supervision and sanctions. The Committee notes the Government’s indication that, according to the information provided by National Labour Inspection Authority (SUNAFIL), in 2022 and 2023 there was a total of 2,763 concluded inspection orders relating to the minimum living wage (2,198 in 2022). The Government also indicates that 15,743 workers were affected by these orders (13,292 in 2022). As regards decisions and fines relating to the minimum living wage, the Committee notes the Government’s indication that in 2022 a total of 51 decisions were issued (19 at first instance, 32 at second instance) while from January to June 2023 the figure was 28 (19 at first instance, 9 at second instance). As regards fines, the total amount in 2022 was 452,466 Peruvian soles (PEN) (308,378 at first instance, 144,088 at second instance), while up to June 2023 it was PEN 194,046 (149,188 at first instance, 44,858 at second instance). The Committee notes that the CATP in its observations expresses concern at the scarcity of labour inspection relating to the minimum wage. It also indicates that cases are frequently reported in which employers formally record payment of the minimum wage on the payroll but in practice pay workers smaller amounts. The Committee requests the Government to provide its comments in this respect. The Committee also refers to its comments on the application of the Labour Inspection Convention, 1947 (No. 81).

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 and 99 together. The Committee notes the observations of the Autonomous Workers’ Confederation of Peru (CATP) on the application of Conventions Nos 26 and 99, received in 2017, and the Government’s reply to these observations.

Article 2 of Convention No. 99. Partial payment of minimum wages in kind. In its previous comments, the Committee noted the Government’s indication that the conditions for the payment of wages in the form of allowances in kind and their limits were regulated by Legislative Decree No. 14222 of 1962 and its Regulations (Presidential Decree No. 007) of 1965. In particular, the payment of wages in kind was regulated by sections 10, 11 and 13 of Legislative Decree No. 14222. In this regard, the Committee notes the information available on the webpage of the Peruvian Legal Information System of the Ministry of Justice and Human Rights, according to which Decision No. 582-2013-MTPE-4, of 5 March 2013, of the Ministry of Labour and Employment Promotion, indicates that sections 10 and 13 of Legislative Decree No. 14222 have been tacitly repealed in line with sections 1 and 2 of Act No. 28051 respecting food allowances for workers subject to the private sector labour regime of 2003. The Committee understands that section 11 of Legislative Decree No. 14222 has not been repealed. The Committee requests the Government to confirm whether section 11 of Legislative Decree No. 14222 and its regulations continue to cover the partial payment of wages in kind and, if so, to provide information on the application of assessment criteria and limits to such payments in practice, and particularly in relation to the payment of minimum wages to workers in the agricultural sector.

Article 3(1) and 2(1) and (2), of Convention No. 26, and Article 3(1), (2) and (3) of Convention No. 99. Minimum wage-fixing machinery. Participation of the social partners. With reference to its previous comments, the Committee notes the Government’s replies in its report to the observations of the General Confederation of Workers of Peru (CGPT) and the information provided on the General Labour Bill. The Committee also notes the indication by the CATP in its observations that workers in the agricultural sector are not consulted in relation to their minimum wage and that the special labour regime applicable to the sector has not been taken into account in the National Labour and Employment Promotion Council (CNTPE). Moreover, it refers to the suspension of the work of the CNTPE. The Committee requests the Government to provide information on the manner in which workers in the agricultural sector are consulted on or participate in the CNTPE with a view to the determination or application of the minimum wage-fixing machinery covering the sector. Furthermore, taking into account the fact that the operation of the CNTPE is under examination in the framework of the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), the Committee refers to its comments on the application of that Convention.

Article 4 of both Conventions. Supervision and sanctions. The Committee notes the indication by the CATP in its observations that the labour inspection system is confronted with operational problems, particularly in relation to micro-enterprises, as a consequence of the shortage of human, financial and material resources, as well as the reduction in the penalties in place for failure to comply with the social and labour provisions applicable to such enterprises, including in relation to the minimum wage. The Committee requests the Government to provide updated information on the labour inspections undertaken in relation to the payment of the minimum wage, including the number of inspections conducted, the number of workers involved, the violations detected and the penalties imposed. The Committee also refers to its comments on the application of the Labour Inspection Convention, 1947 (No. 81).

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Articles 1 and 3 of the Convention. Scope of minimum wage fixing machinery – Consultations with the social partners. The Committee requests the Government to refer to the comments made under the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26).

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Article 2 of the Convention. Partial payment of minimum wage in kind. The Committee notes the Government’s indication that the conditions under which and the limits within which minimum wages may be paid in the form of allowances in kind continue to be regulated by Decree-Law No. 14222 of 1962. The Committee also notes the Government’s statement that, under section 204 of the draft General Labour Act, which has already been approved by the National Labour and Employment Promotion Council (CNTPE), the cash value of food and other allowances in kind cannot exceed 20 per cent of the total amount of the minimum wage. The Committee requests the Government to provide additional information on the process of elaboration of the new General Labour Act, especially in matters connected with minimum wage fixing, and to transmit a copy of the new legislation as soon as it is adopted.

In addition, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body as regards the relevance of the Convention following the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Convention No. 99 is among those instruments which may no longer be fully up to date but remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which contains certain improvements compared to earlier instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee considers that the ratification of Convention No. 131 is all the more advisable as Peru has already in place a minimum wage fixing mechanism that covers all sectors of the economy rather than individual sectors as is the case under Convention No. 99. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Further, the Committee refers to the comments made under Convention No. 26.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes that the information supplied by the Government on the impact that the earthquake which took place last August in its country has had on its capacity to submit its reports. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Article 1, paragraph 1, of the Convention. The Committee notes the Government’s statement in its previous report that the competent body for fixing minimum wages is the National Council for Labour and Employment Promotion (CNTPE). This body is composed of the Minister of Labour, employers’ and workers’ representatives and social organizations active in this sector. The Government added that section 13 of Act No. 27711 of 16 April 2002, and section 22 of the Regulations respecting the organization and functions of the Ministry of Labour, approved by Ministerial Resolution No. 058-2001-TR, provided the legal basis for this body. Regarding these Regulations, the Committee notes that they have been replaced by Ministerial Resolution No. 173-2002-TR and that the new Regulation does not mention the regulation of the minimum subsistence wage (RMV) as being part of the functions of the CNTPE. The Committee requests the Government to supply detailed information on the competence of this body to fix minimum wages and any legislation relating to its operation.

Article 2. The Committee requests the Government to supply updated information on cases in which the partial payment of the minimum wage in kind is authorized by legislation, to indicate the percentage that may be paid in this form and to forward copies of the relevant legislative provisions.

Article 3, paragraphs 2 and 3. The Committee notes the Government’s statement in its previous report that, beginning in 1994, the RMV had been periodically adjusted by an emergency decree. The Committee also notes that the RMV was last adjusted in 2000 by Emergency Decree No. 012-2000, and is currently 410 soles a month or 13.67 soles a day. The Committee requests the Government to indicate whether employers’ and workers’ organizations were consulted prior to the adjustment of the minimum wage and to indicate the manner in which these organizations participate in fixing minimum wages in practice.

Article 4 and Part V of the report form. The Committee notes the Government’s indication in its last report that there was no information on the inspections carried out relating to minimum wages. The Committee hopes that the Government will make every effort to collect and provide, in its next report, detailed information on the application of the Convention in practice, including: (i) the methods of enforcement and the sanctions imposed; (ii) the number of workers in each minimum wage category; (iii) statistical data on the evolution of minimum wage rates in recent years; (iv) extracts from CNTPE activity reports on the regulation of minimum wages; and any other information relating to the operation of the minimum wage fixing machinery.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the Government’s report and the attached documentation.

Article 1, paragraph 1, of the Convention. The Committee notes the Government’s statements that the competent body for fixing minimum wages is the National Council for Labour and Employment Promotion (CNTPE). This body is composed of the Minister of Labour, employers’ and workers’ representatives and social organizations active in this sector. The Government adds that section 13 of Act No. 27711 of 16 April 2002, and section 22 of the Regulations respecting the organization and functions of the Ministry of Labour, approved by Ministerial Resolution No. 058-2001-TR, provide the legal basis for this body. Regarding these Regulations, the Committee notes that they have been replaced by Ministerial Resolution No. 173-2002-TR and that the new Regulation does not mention the regulation of the minimum subsistence wage (RMV) as being part of the functions of the CNTPE. The Committee requests the Government to supply detailed information on the competence of this body to fix minimum wages and any legislation relating to its operation.

Article 2. The Committee requests the Government to supply updated information on cases in which the partial payment of the minimum wage in kind is authorized by legislation, to indicate the percentage that may be paid in this form and to forward copies of the relevant legislative provisions.

Article 3, paragraphs 2 and 3. The Committee notes the Government’s statement that, beginning in 1994, the RMV has been periodically adjusted by an emergency decree. The Committee also notes that the RMV was last adjusted in 2000 by Emergency Decree No. 012-2000, and is currently 410 soles a month or 13.67 soles a day. The Committee requests the Government to indicate whether employers’ and workers’ organizations were consulted prior to the adjustment of the minimum wage and to indicate the manner in which these organizations participate in fixing minimum wages in practice.

Article 4 and Part V of the report form. The Committee notes the Government’s report indicating that there is no information on the inspections carried out relating to minimum wages. The Committee hopes that the Government will make every effort to collect and provide, in its next report, detailed information on the application of the Convention in practice, including: (i) the methods of enforcement and the sanctions imposed; (ii) the number of workers in each minimum wage category; (iii) statistical data on the evolution of minimum wage rates in recent years; (iv) extracts from CNTPE activity reports on the regulation of minimum wages; and any other information relating to the operation of the minimum wage fixing machinery.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report. It notes in particular the Government's indication to the effect that, under section 77 of Legislative Decree No. 653 (Act to promote investments in the agrarian sector), agricultural workers are subject to the rules governing labour in the private sector and thus are covered by the legislation applicable in this area.

The Committee asks the Government to provide a copy of the above text. It also asks the Government to provide, in accordance with Article 5 of the Convention and point V of the report form, general information on the manner in which the Convention is applied in the agricultural sector, including, for example, information on: (i) the minimum wage rates applied; (ii) available statistics on the number and different categories of workers covered by the minimum wage; and (iii) the result of any inspections carried out (violations reported, sanctions imposed, etc.).