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Peru

World bank, 2022
Poverty headcount ratio at $6.85 a day (2017 PPP) (% of population)
32%
Population below international poverty line

Equivalent to 1,025 Peruvian sol per worker per month.
WageIndicator Foundation, 2024

250
per month
National minimum wage

Equivalent to 1,960 Peruvian sol per worker per month.
Global Living Wage Coalition, 2023

477
per month
Rural living wage

Equivalent to 2,475 Peruvian sol for a typical family in rural Peru per month.
Global Living Wage Coalition, 2023

603
per month
Rural living income
World bank, 2022
Employment in agriculture (% of total employment) (modeled ILO estimate)
26%
Agricultural workforce
World bank, 2022
Agriculture, forestry, and fishing, value added (% of GDP)
7%
Agriculture share of GDP

ITUC Global Rights Index, 2023
Systematic violation of rights.

4
high
Risk to workers' rights

Context

Peru has a population of 34.4 million people.[1] The majority of Peruvians, 79%, live in urban regions,[2] while only 21% lives in rural areas.[3] The agricultural sector assumes 26% of total employment in Peru.[4] A sector that represents 7% of the national GDP.[5]

Despite the prosperity Peru and its agriculture have witnessed during the last two decades, this wealth has yet to reach the country’s smallholder farmers, the majority of which lives in poverty. Smallholders make up 80% of agricultural holdings, with plots of less than 5 hectares. Although the returns on such farms are significantly low, the lack of other opportunities pushes rural inhabitants to keep on working on these family farms. Thus, only a small percentage of farmers, mostly with large holdings, enjoy the country’s newly-gained wealth from agricultural exports.[6]

The top produced crops in Peru are sugar cane, potatoes, rice, bananas and fresh cow milk. [7] Peru’s top export commodities in terms of quantity are avocados, grapes, onions and shallots, berries, and prepared fruit. [8]

Footnotes
  1. ^ World Bank (2023). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=PE
  2. ^ World Bank (2023). https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=PE
  3. ^ World Bank (2023). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=PE
  4. ^ World Bank (2022). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=PE
  5. ^ World Bank (2022). https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=PE
  6. ^ World Bank. 2017.Gaining Momentum in Peruvian Agriculture : Opportunities to Increase Productivity and Enhance Competitiveness. World Bank, Lima. © World Bank. https://openknowledge.worldbank.org/handle/10986/27517 License: CC BY 3.0 IGO.
  7. ^ FAOSTAT (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country
  8. ^ FAOSTAT (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports

Wages

Minimum Wage

The minimum wage in Peru is set by law for the private sector at 1,025 Peruvian Sol (250 EUR) per month. It is based on 8 hours per day, with at least one day of rest per week.[1] It is estimated that the national minimum wage in Peru is below the poverty income level. Furthermore, approximately 70% of the workforce is in the informal economy where wages do not reach the level of a minimum wage.[2]

The Global Living Wage Coalition has developed 2 reference value studies for rural Peru based on the Anker methodology, one for living wage and one for living income.

Footnotes
  1. ^ Wage Indicator Foundation (2024). Minimum Wage-Peru. https://wageindicator.org/salary/minimum-wage/peru
  2. ^ U.S. Department of State. 2023 Country Reports on Human Rights Practices: Peru. https://www.state.gov/reports/2023-country-reports-on-human-rights-practices/peru/

Living Wage

The Anker Living Wage Reference Value in rural Peru is estimated at 1,960 Peruvian Sol (477 EUR) per month. This is the wage required for workers in a typical rural area of Peru to afford a basic but decent standard of living.[1]

Footnotes
  1. ^ Global Living Wage Coalition (2023). Anker Living Wage Reference Value: Rural Peru. https://www.globallivingwage.org/living-wage-reference-value-rural-peru/

Living Income

The Anker Living Income Reference Value is estimated at 2,475 Peruvian Sol (603 EUR) per month for a typical rural family of 2 adults and 3 children. This is the living income estimate for a typical family in rural Peru to cover the monthly cost of a basic but decent standard of living in 2023.[1]

Footnotes
  1. ^ Global Living Wage Coalition (2023). Anker Living Income Reference Value: Rural Peru. https://www.globallivingwage.org/living-income-reference-value-rural-peru/

What's happening

resource

Living Wage Reference Value, Rural Peru

Living wage estimate updated for workers in a typical rural area of Peru to afford a basic but decent living standard. Global Living Wage Coalition.  

resource

Living Income Reference Value, Rural Peru

Living income estimate updated for a typical family in rural Peru to afford the monthly cost of a decent standard of living. Global Living Wage Coalition, 2020.

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Banana Link

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Global Coffee Platform

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Rokbar

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The External Costs of Banana Production

This report focuses on putting a price in the environmental and social issues surrounding the banana sector.

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