Saturday, January 10, 2009

Minimum wage increased in El Salvador

An increase in El Salvador's minimum wage went into effect at the beginning of 2009. Monthly wages increased from $192.30 to $207.68 in the commercial section, from $167 to $173.78 in maquila factories, and from $90 to $97.20 in the agricultural sector.

As a daily wage, the wages range from $2.70 to $3.54 in the agricultural sectors (depending on the crop) and from $6.77 to $6.92 in commerce and manufacturing.

These wages only apply to workers in the formal sector. There does seem to be a correlation between the approach of an election and the minimum wage increasing.

4 comments:

El-Visitador said...

«There does seem to be a correlation between the approach of an election and the minimum wage increasing»

No kidding.

And people still have the audacity of saying we live in a free capitalist economy. More like a statist-socialist managed economy: when government has such awesome power, no wonder the Salvadorean government is so corrupt.

And then people wonder why El Salvador is such a poor country.

There can never be investment here when the minimum wage is 42% more than the minimum wage in Shenzen and 96% higher than the minimum wage in Peking.

Minimum wage in Mexico is $121, so El Salvador is now utterly uncompetitive at 72% more expensive than Mexico.

And remember: workers in places such as Shenzen and Peking are better trained and harder working that Salvadoreans.

Socialist/symbolic measures such as raising the minimum wage may look good to the illiterate in Economics, but simply result in long-term unemployment as factories look for greener pastures, namely, China or Mexico.

http://www.chinacsr.com/en/2008/06/05/2411-shenzhen-raises-minimum-wage-to-cny1000/

http://www.chinadaily.com.cn/bizchina/2008-06/28/content_6803208.htm

What an mental midget Socialist president we have.

Anonymous said...

Does one really exist fully or just subsist with any of these minimmum wages?

Regardles what the ant colony known as china pays its coolies.

Regards,

john said...

I agree with Anonymous. El Visitador is a cruel, capitalist, exploiter. A fitting inheritor to the Wrights, De Solas, etc. Exploit, exploit, exploit the farm laborers and the urban workers. And, EV and others like him run away to the living standards of the depraved super-rich. Or perhaps EV is an uncritically thinking wannabe hit-man of the defenseless poor for their assumed ideological transgressions: believing their human rights should be respected by receiving a living wage.

Anonymous said...

Well I tell you something; the cost in China is so cheap (for producers)and the labour can afford more things than salv. with their min wages, because here people can find all kind of articles and commodities in low prices. in the other hand, Salv. are "consumistas" and spend more than they make.

Nowadays, there are other emerging countries to compete and we will never beat their min. wages, even China can not compete with their costs, because the manufacturing cost in China is rising everyday; but here, the gov. is investing and educating the labour to conserve the leadership in this industry.

I agree the goverment has to make a lot modification in its structure and policy before competing with these countries and there's a long way to walk before it happens if it happens, otherwise, expect one thing the business in ES is gone and moved out to cheapest places as you've seen it for the last 9 years.
Saludos