Asunción, Paraguay – As of July 1, 2025, Paraguay's minimum wage has been increased and is now in effect. Accordingly, the Ministry of Labor has announced a strong crackdown on the non-payment of the increased minimum wage, warning of severe penalties for violating companies.
Paraguay's new minimum wage is G. 2,899,048 per month and G. 111,502 per day. This is an increase of G. 100,739 from the previous minimum wage, benefiting approximately 269,485 workers. This increase was made on the recommendation of the National Minimum Wage Commission (Conasam) and reflects the change in the Consumer Price Index (CPI) up to June of each year. This increase rate was set based on cumulative inflation of 3.6%.
Ministry of Labor Announces Strong Crackdown
Minister of Labor Mónica Recalde revealed that numerous reports of non-payment were received within the first two days of the minimum wage increase taking effect, announcing an intensive enforcement campaign to ensure compliance with the minimum wage. Ministry inspectors will thoroughly investigate companies that do not comply with the minimum wage.
Fines for Non-Payment of Minimum Wage
Fines for non-payment of the minimum wage range from 10 to 30 times the daily wage per affected worker. As the current daily wage is G. 111,502, the fines range from G. 1,115,020 to G. 3,345,060. These fines are not only for non-payment of the minimum wage but also represent the beginning of additional administrative penalties that may be imposed for violating related laws. Companies that fail to pay workers their rightful wages will face significant financial disadvantages.
Protecting Worker Rights and Reporting Methods
The Ministry of Labor encourages workers who are not receiving the minimum wage to report it actively. Reports can be made through the following methods:
WhatsApp: (0993) 308-100
In-person visits:
Asunción Headquarters (Herrera y Paraguarí)
Regional offices nationwide
The Ministry of Labor plans to promptly and thoroughly investigate all reported cases to ensure that workers' rights are not violated.
Discussion on Minimum Wage Calculation Method
Meanwhile, Senator Esperanza Martínez has introduced a bill to revise Paraguay's minimum wage calculation method. She argues that the current calculation method does not accurately reflect the actual increase in workers' cost of living. Senator Martínez pointed out that while the CPI increased by 28% from 2018 to 2023, food prices surged by 47%. She emphasized that in 2023 alone, food prices rose by 7.5% while the overall CPI was only 3.9%, advocating for the minimum wage to more accurately reflect price increases, especially in essential living costs.
These discussions highlight that the minimum wage is directly linked to the real quality of life for workers. The government and legislature have a responsibility to continuously review the adequacy of the minimum wage and to promote the stability of workers' livelihoods in line with changing economic conditions. Companies must fulfill their social responsibility by adapting to these changes and faithfully complying with legal obligations.
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