Major textile associations of El Salvador have shown support for the hike in minimum wages in the country, as suggested in a proposal by the National Association of Private Enterprise (ANEP). In view of the economic situation of the El Salvador, the smallest country in Central America, ANEP suggested the minimum wage should be increased by 12 percent in three stages—an immediate increase of 4 percent, another 4 percent in January 2014 and a final hike of 4 percent in early 2015.
The rise in minimum wage in El Salvador will also generate job security and will not harm the businesses, executive director of ANEP, Arnoldo Jimenez, said, according to elsalvador.com. Even the textile business associations of El Salvador, including the National Council of Small Business (CONAPES); the Chamber of Commerce and Industry; the Chamber of Textile, Clothing and Free Zones (Camtex); and the Mipyme Union have expressed their agreement with the proposed wage hike.
The proposal for wage-hike was discussed during a meeting of the National Minimum Wage Council (MNHA) of El Salvador. The document states that the hike in minimum wages would be applied to the trade and services sector, as well as the industrial and agricultural sectors. However, the Government of El Salvador has put forward an alternative proposal seeking implementation of 5 percent wage hike from June 1, followed by another 5 percent from January 1, 2014 and the remaining 2 percent from June 1, 2014, or after a year.
