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FAQs on Minimum Wages in Paraguay

by Khushi Mehta — last modified Feb 14, 2012 11:36 AM

 

Frequently Asked Questions Minimum wages implemented as per law (as per law) Minimum wages implemented in reality (in practise)
Is there a separate legislation relating to minimum wages in Paraguay? There is no separate legislation on minimum wages in Paraguay. However the Constitution of Republic of
Paraguay, under article 92, says that a worker s entitled to minimum living wage. It is the Labour Code
(Law 213 of 1993) that regulates statutory minimum wages in the country. The main regulations concerning
MW are articles 249 to 260 of the Labor Code.		 84 per cent of the labourers work in the informal sector, where the minimum wage law doesn't rule.
Do one or more minimum wages exist that is/are determined by law? There exists only one statutory minimum wage rate, which applies at the national level.  
At what level are minimum wages determined? Minimum wages are determined at regional and sectoral level. As per article 251 of the Labour Code, 1993
general minimum wage should be set for rural and urban areas each. It also states that minimum wage can
be set for one or more industries in both the areas.		  
On what basis is minimum wage calculated? Minimum wages is calculated on monthly basis. The Ministry of Justice and labour of Paraguay legally declares
a monthly minimum wage rate. (refer to decree no 4686 of 2010)		  
In case of weekly/monthly minimum age, are they based on any fixed number of hours? Article 232 of Labour Code, 1993 says that wage can be paid per unit of time (daily, monthly, weekly o
fortnightly) or per unit of work, depending on the nature of job. And article 194 of Labour Code states
that then normal working hours for a worker 8 hrs per day or 48 hrs per week (day time).		 Article 232 of Labour Code, 1993 says that wage can be paid
per unit of time (daily, monthly, weekly o fortnightly) or per unit
of work, depending on the nature of job. And article 194 of Labour Code states that then normal working hours for a worker 8 hrs per day or 48 hrs per week (day time).
Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting? According to Labour Code, article 252, minimum wage rates are based on proposals from National Minimum
Wage Council which is composed of 3 representatives each of State executives, employers and workers;
and is chaired by Director of Labour. The Central Unitaria de Trabajadores, Central Nacional de Trabajadores,
Corriente Sindical y Clasista, CPT, CGT and CONAT are the organizations that represent workers at the
National Minimum wage Council. The Unión Industrial Paraguay represents employers at the Council.		  
How are upratings (adjustments) of minimum wages decided upon? As per law, National Minimum Wage Council ( a tripartite body) is responsible for declaring as well as revising
the minimum wage rate. So upratings of minimum wages are decided jointly by government, employer and
trade union representatives.		  
Which are the components of minimum wages in Paraguay? The statutory national minimum wage rate declared by Ministry of Justice and Labour of Paraguay is a fixed
component.		  
How frequently is the fixed component of minimum wages updated? As per article 255 of the Labour Code, 1993 minimum wage once determined should remain in force for two
years, unless labour authorities or other interested authorities request for modifications.		 But it can be updated if the inflation is higher than 10% or the
industrial conditions change deeply.
What is/are the yardstick/s on which minimum wage upratings are based? "As per article 256 of Labour Code, modifications in minimum wage rate should be based on a) profound
alteration of the conditions of the area or industry, motivated by economic and financial factors, and b) change
in living costs, estimated at 10% (ten percent) at least. However, according to article 249 of the Labour Code,
1993 the minimum wage should be sufficient to meet the normal requirements of the worker's life consisting
of: food, shelter, clothing, transport, security, culture and recreation honest considering as head of
household. And article 250 clearly states that, in order to increase the standard of living, minimum wage should
take into account - a) the cost of living of working families, according to the time and place, b) the general level
of wages in the country or region where the work is performed; c) the economic conditions of the respective
industry; d) the nature and work performance; e) the worker's age, to the extent that influence their
productivity, and f) any other circumstances that were consistent fixation. "		  
What is the national poverty line? (In national currency)? The national poverty line is 1,570,825 guaranies (Source: The Dirección General de Estadísticas y Censos)  
How often is poverty line updated? Poverty line is updated between 6 months to 1 year. (Source: The Dirección General de Estadísticas y Censos.
It is based on an annual household survey.)		  
When was poverty line last updated? (Specify YYYY/MM) The poverty line was last updated in 2010/12  
What is the percentage of minimum wage relative to the current poverty line? The percentage of minimum wage relative to the current poverty line is 95.99%. Calculation method: (Minimum
wage/Poverty line)*100. Sources: Presidential decree nº 4868 and the Dirección General de Estadísticas y Censos		  
What is the incidence of minimum wages(s) in the national labour force (wage earners only)? Below 25 per cent of the working force. Source: Comisión Económica para América Latina  
How is minimum wages compliance regulated? According to article 407 and 408 of Labour Code, compliance and enforcement of labour laws is supervised by
administrative authorities i.e. Ministry of Justice and Labour, and its agencies with delegated powers.		 The effectiveness of the compliance is poor as 84 per cent of the
labour force work in the informal sector
Which legal sanctions can be applied in compliance is lacking? As per article 390 of Labour Code, an employer who pays his employee wages below minimum wage shall be
punished by a fine of 30 minimum daily wage, and this fine will double if the offence is repeated.		  
  Are sanctions often being applied? 70% of the workers earn less than the Minimum wage. In a certain way, informal work is legitimized.  
Are employer and/or trade union representatives involved in compliance procedures? The Central Unitaria de Trabajadores, Central Nacional de Trabajadores, Corriente Sindical y Clasista, CPT, CGT
and CONAT along with the Unión Industrial de Paraguay are the organizations that should be involved in the
compliance procedures.		  
To whom/Where can individuals complain, if they think they are earning less than minimum wage? Article 259 of Labour Code, says that a worker who is paid less than minimum wage is entitled to claim the due
amount from the employer. Since compliance and enforcement of labour laws is the responsibility of ministry
and its delegate, say labour Inspector. So an individual can also approach them in case of violation of minimum
wages by their employer. According to the Labour Code, article nos 290 and 291, it is the function of trade unions to
represent its members at their request to the labor authorities to ensure compliance with the provisions of this Code, to sponsor their members in labor disputes in the conciliation and arbitration, and also to submit the complaints of their members to authorities. So an individual can complaint to trade unions.		  

 

 

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