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The Government increases the Minimum wages to 1000Bs. And increase health and education wages in 8%

 Through Supreme Decree 1213,   President Evo Morales puts into effect the increment in wages for the year 2012. The National Minimum Wages were increased in 22 % in relation to last year. The 8% rise for Health, Education, Police, and Armed Forces, is also the foundation for negotiations in the private sector.

The morning of the May 1st, The Government of President Evo Morales increased the National Minimum Wedges to 1000Bs, and gave a rise of 8% to Health, Education, National Police, and Armed Forces, percentage that will also be the foundation for negotiations in the private sector.

After the sign of Decree 1213, the President informed about the wages provisions in a ceremony hold in the Government Palace for the Labor Day, where city and country social leaders were present.

In percentages, in 2012, the National Minimum Wages rose in 22.6%, being increased from 815.40Bs to 1000 Bs. This proposal had already been anticipated by the president last Saturday, after the last meeting with the Central Obrera Boliviana, and this Tuesday the government made it official.

In regard to the wage rise for health, education, National Police and Armed Forces, the increment will be based on an inverse proportion to benefit more to those earning less.

To show the significance of the increment, the President said that seven years ago the rise for education was just 35%, on the other hand, in the last seven years it reached 61%.
Something similar happens in the health sector, since before 2006 the increment reached 35% while in the seven years of Evo Morales government it reached 61%.

Between 2003 and 2005 the increment was 0%, and the National Minimum Wedge was kept in 440Bs during those three years. Seven years before the beginning of the actual government, the National Minimum Wages was just of 46.7%, while in Evo Morales 7 years of Government it is already 127.28%.

The President pointed out that the National Government could give this increment thanks to austerity measures in the management of state resources since 2006.

In the ceremony, the ministry of Labor, Daniel Santallas, pointed out that the wage rise was approved in the executive body after long discussions with the Central Obrera Boliviana, in which they took care of the economy and the public funds.

Rise in the Minimum wages

With this last increment in the National Minimum Wages, between 2005 and 2012 the increment reaches to 127, 28%, it has doubled.

The evolution in the increments to the National Minimum Wages can be shown in Bolivian pesos too, from 440Bs in 2005, to 500Bs in 2006,   525Bs. In 2007, and 577.5Bs in 2008.

This goes according to the Governmental policy of raising the wages over the Inflation index. In this way in 2012 the increment for health and education is higher than the inflation in 2011 that was 6.9%.

The cost of life is cheaper in Bolivia

When some analysts consider the wages rise given by the government in the last years as insufficient and they compare them to wages in neighboring countries, they don’t take on count that cost of life in Bolivia is cheaper than in those nations.

It means that in countries such as Brazil or Argentina, food, basic services, and other necessities are more expensive. On the other hand in Bolivia we still have access to services with cheap prices. In 2011 the demand for basic services increased in 8% showing that more Bolivians have improved their quality of life.

According to the Ministry of Economy and Finance, Luis Arce Catcora, the option to be able to find cheaper food in local markets than in other countries, are a result of encouraging the production of grains, meat, vegetables, potatoes and other products.
The International consultancy firm MERCER in a recent study established that La Paz (Bolivia) is in the place No 212 from a ranking of 214 cities where the cost of life was measured.

In Latin America, in the city of Sau Paolo is the most expensive one, with the position number 10 in the ranking of MERCER, Caracas Venezuela is in place number 51, Bogota Colombia in place number 63, Santiago de Chile in place number 75, Montevideo Uruguay in place number 127, Lima Peru in place number 138, Mexico City in place number 148 and Buenos Aires Argentina in place number 159.

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