Minister of Labor Raúl Ledesma announced Thursday that Ecuador’s minimum wage will increase from $386 to $394 in 2019. He said the amount represented a compromise between labor groups and business owners.
In negotiations with the government, labor leaders pushed for a $22 increase while employers wanted no more than $4. “There has been no inflation on the cost of basic goods during the past year but we realize that we are still catching up on providing for our workers,” Ledesma said. The $8 increase is the smallest adjustment to the basic wage in more than a decade.
The minimum wage, or basic salary, is important not only for workers but to all Ecuadorians since it determines a variety of payments that residents make to the government, including Social Security contributions, pensions, traffic fines, as well as some fees and taxes.