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Peru

World bank, 2019
Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population)
21%
Population below international poverty line

World Bank, 2018
Poverty headcount ratio at $5.50/day 2011 PPP

22%
Population below national poverty line

Equivalent to 930 Peruvian sol per worker per month.
WageIndicator Foundation, 2021

209
per month
National minimum wage

Equivalent to 1,582 Peruvian sol per worker per month.
Global Living Wage Coalition, 2020

356
per month
Rural living wage

Equivalent to 2,050 Peruvian sol for a typical family in rural Peru per month.
Global Living Wage Coalition, 2020

462
per month
Rural living income
World bank, 2019
Employment in agriculture (% of total employment) (modeled ILO estimate)
27%
Agricultural workforce
World bank, 2019
Agriculture, forestry, and fishing, value added (% of GDP)
7%
Agriculture share of GDP

ITUC Global Rights Index, 2020
Systematic violation of rights.

4
high
Risk to workers' rights

Context

Peru has a population of 32.5 million people.[1] The majority of Peruvians, 78%, live in urban regions,[2] while only 22% lives in rural areas.[3] The agricultural sector assumes 27% 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, plantains and fresh cow milk. [7] Peru’s top export commodities in terms of quantity are grapes, avocados, dry onions, green coffee and bananas. [8]

Footnotes
  1. ^ World Bank (2019). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=PE
  2. ^ World Bank (2019). https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=PE
  3. ^ World Bank (2019). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=PE
  4. ^ World Bank (2020). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=PE
  5. ^ World Bank (2018). 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 (2019). http://www.fao.org/faostat/en/#rankings/commodities_by_country
  8. ^ FAOSTAT (2019). 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 930 Peruvian Sol (209 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 (2020). Minimum Wage-Peru. https://wageindicator.org/salary/minimum-wage/peru
  2. ^ U.S. Department of State. 2019 Country Reports on Human Rights Practices: Peru. https://www.state.gov/reports/2019-country-reports-on-human-rights-practices/peru/

Living Wage

The Anker Living Wage Reference Value in rural Peru is estimated at 1,582 Peruvian Sol (356 EUR) per month, which is 70% higher than the national minimum wage. This is the wage required for workers in a typical rural area of Peru to afford a basic but decent standard of living. The value is constituted of a net living wage of 1,266 Peruvian Sol (285 EUR) per month, plus 316 Peruvian Sol (71 EUR) per month to cover the pension contribution and taxes.[1]

Footnotes
  1. ^ Global Living Wage Coalition (2020). Anker Living Wage Reference Value: Rural Peru 2020. https://www.globallivingwage.org/wp-content/uploads/2020/11/Rural-Peru-LW-Reference-Value_EN-FINAL.pdf

Living Income

The Anker Living Income Reference Value is estimated at 2,050 Peruvian Sol (462 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. This value, turned out to be 28% higher than the income of a family relying on the national minimum wage and 68% higher than the typical family income where the members rely on the average rural wage.[1]

Footnotes
  1. ^ Global Living Wage Coalition (2020). Anker Living Income Reference Value: Rural Peru 2020. https://www.globallivingwage.org/wp-content/uploads/2020/11/Rural-Peru-LI-Reference-Value_EN-FINAL.pdf

What's happening

resource

Living Wage Reference Value, Rural Peru

Living wage estimate for workers in a typical rural area of Peru to afford a basic but decent living standard. Global Living Wage Coalition, 2020.  

resource

Living Income Reference Value, Rural Peru

Living income estimate 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

An organization based in the UK which focuses on raising awareness around the hurdles to the ethical trading of bananas and pineapples.

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Global Coffee Platform

The Global Coffee Platform is the leader organization in sustainable coffee and has established ten country platforms including one in Peru.

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Better Livelihoods in the gold sector

This report focuses on Solidaridad’s gold programme in Ghana and Peru.

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Rokbar

Rokbar is a fully traceable and CO2 neutral chocolate produced, processed, made, and owned by women.

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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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