These are the 8 countries with the highest and lowest minimum wages in Latin America.

A country's minimum wage is a key indicator for comprehensively understanding the labor market situation, the level of economic development, and public policies regarding employment and income . Comparing it across Latin American countries helps to measure existing gaps and highlight both inequalities and the real living conditions of the population. What are the eight places with the highest and lowest incomes in the region?

A ranking compiled by the specialized website Statista , based on data from Bloomberg , offers a clear picture of this variable in Latin America. Over the course of this year, several governments in the region have updated their minimum wages to compensate for the loss of workers' purchasing power. However, the figures continue to show marked inequality: while some countries manage to maintain levels that approach international standards, others barely reach symbolic amounts that are insufficient compared to the real cost of living. The countries with the lowest minimum wages in Latin America are led by:

• Venezuela: $1.2 per month (130 bolivars).

• Argentina: $263. • Brazil and El Salvador: $273. • Peru: $316. • Panama: $341. • Honduras: $346. • Colombia: $349. These figures, measured in nominal terms and converted to dollars as of June 2025, show a significant gap with the cost of living, which exacerbates inequality and limits workers' ability to meet their basic needs.

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What's happening to the highest-paying countries in Latin America?

At the other end of the spectrum are the nations that have managed to maintain the most competitive minimum wages in the regional context: • Costa Rica : $726. • Uruguay: $586. • Chile: $565. • Ecuador: $470. • Guatemala: $467. • Mexico: $417. • Bolivia: $398. • Paraguay: $350. While these figures do not take into account purchasing power or domestic price differences, they offer a better outlook for workers compared to the regional average.

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The case of Colombia and the minimum wage

The minimum wage plays a fundamental role in any country's economy, as it directly influences workers' purchasing power , domestic consumption, and business competitiveness. By establishing a base wage, governments seek to guarantee a minimum level of well-being for employees and their families, thus contributing to the country's social and economic stability. Key aspects of its importance include reducing inequalities by closing gaps between the most vulnerable sectors of society and the rest of the population, and promoting social stability, as a fair minimum wage can prevent labor disputes and foster a more equitable work environment.

Furthermore, according to a report from the University of the Coast , its influence on the economy is significant: an increase in the minimum wage can stimulate domestic consumption, although it also generates debate about possible effects on inflation and formal employment.

In Colombia, at the end of December 2024, the National Government decreed a 9.54% increase in the minimum wage, which went from $1,300,000 to $1,423,500, applicable from January 1, 2025. Meanwhile, the transportation subsidy increased from $162,000 to $200,000, bringing the total nominal minimum wage to $1,623,500, equivalent to approximately $323.30.

This adjustment reflects the country's efforts to improve workers' living conditions in the face of inflation and current economic challenges.