Minimum Wage to Reduce Poverty in El Salvador

San Salvador, Jan 4 (Prensa Latina) An increase of the minimum salary in El Salvador will have positive effects such as: poverty reduction, an increase in consumption and economic growth, according to an analysis by the Central Bank released on Wednesday.

The Central Bank estimates that a total of 78,178 workers from the agricultural sector, will benefit from the salary rise, which will be applied this month, despite opposition from right-wing sectors.

Over 140 thousand industry sector workers will also get better incomes and in the public sector, 303,032 employees will get a salary rise.

This will mean that 19.9 percent of households in El Salvador will benefit from the salary increase proposed by the Salvadoran government headed by President Salvador Sanchez Ceren.

Fourteen percent (258,298) of Salavadoran households will experience a reduction in poverty. Over 10 thousand households will go from extreme poverty to relative poverty.

According to analysis, 35.5 percent of workers (522,154 people) are getting the equivalent or less than the minimum salary at this moment.

Source: Prensa Latina