Paraguayan government backtracks on minimum salary increase

Following an announcement on 28 November 2016 that the minimum wage was to increase by 7.7 percent effective November 2016, the government backtracked and confirmed the increase will apply starting in December 2016. The original announcement implied companies that had already paid their workers their November paychecks would be forced to compensate them with an additional payment. This had elicited heavy criticism from private sector representatives like the National Chamber of Commerce and Services of Paraguay (CNCSP), who argued the retroactive measure was illegal (Última Hora). However, the new announcement that the minimum salary raise will be postponed until December 2016 has been met with disappointment from workers' organizations and trade unions. Aldo Snead, Secretary General of the United Workers' Central, announced his organization would file a formal complaint with the Employment Ministry (ABC Color).