President Nayib Bukele of El Salvador talks during a graduation ceremony for higher-ranking police officers on May 19, 2021 in San Salvador, El Salvador. Jose Cabezas/REUTERS Reuters, SAN SALVADOR, July 1 – El Salvador’s President, Nayib Bukele, demanded a 20 percent increase in the minimum wage starting in August, citing poor Salvadorans suffering from worldwide inflation. In a video posted to his Twitter account, Bukele stated that the government would subsidize small and medium-sized enterprises for a period of 12 months to pay the increase, with the purpose of preventing firms from passing on greater costs to consumers. “We can’t change the norms of the global market,” Bukele added, “but we can do some ethical things.” “That is why, as of this morning, a request has been made to the Council of Minimum Wages to raise Salvadorans’ minimum salary.” The current monthly minimum wage is $300, and it was last hiked by 15% in 2017. Bukele has authorized new food distributions as part of a pandemic social program, which he claims will assist to reduce inflation by reducing demand for food purchases. “We will reduce local demand by introducing so much food to Salvadoran families. And, while it will have no effect on global prices, it may have an influence on local prices “Bukele explained. El Salvador became the first government to recognize bitcoin as legal tender alongside the US dollar earlier this month, with Bukele praising bitcoin’s potential as a transfer currency for Salvadorans living abroad. Bukele’s recent political initiatives, such as changing senior judges and the attorney general, have delayed negotiations with the International Monetary Fund for a proposed $1 billion loan program. Nelson Renteria and Cassandra Garrison contributed reporting, while Frank Jack Daniel edited the piece. The Thomson Reuters Trust Principles are our standards./n
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