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Mypes employees earn $314 a month, below minimum wage



The average salary of Maypes workers is equivalent to 86.28% of the minimum wage.  /DEM

The average salary of Maypes workers is equivalent to 86.28% of the minimum wage. /DEM

The salaries received by workers in micro, small and medium enterprises (maipes), most of which are set up as family or subsistence businesses, do not reach the minimum wage set in El Salvador. A study released yesterday by the Mype Observatory of the El Salvador Integration Support Foundation (Fusai) found that the average compensation remains at $314.92.

According to the study, Maypes’ salary is $50.08 below the $365 minimum wage set in the commercial and service sector.

Mypes represents the majority of the country’s business sectors. According to Funishi, these have the effect of promoting competition, stimulating the market and increasing women’s participation in the economy.

The foundation estimates that there will be about 833,164 Mypes cases nationwide in 2022, a significant portion of which occurred in the informal sector.

The agency’s study said the daily income of these economic units reached $103.03, but added that the gender gap in this variable was “significant.”

Women-owned businesses are most affected, with women barely making $81.94 a day, while men make as much as $135.54.

Gap is further accentuated.

My Pes income level is related to the compensation given to the workforce.

The income stream for workers in this business sector will barely cover the basic basket, which was about $247.78 in rural areas until April 2023.

Data show that workers in the agricultural sector have the lowest monthly pay. They get only $173.60, less than half the minimum wage.



The study analyzed the opinions of more than 12,500 micro and small entrepreneurs and found that no micro business earns more than $365 per month on average.

Only small businesses manage to report and exceed the minimum wage, paying an average of $420.31 per month.

The study suggests that some Maypes workers are not getting paid. According to the report, only 82.8% of the total number of employees receive compensation, of which 47.2% are women and 52.8% are men.

According to the data, 3 in 10 MyPes reward their employees financially every week, 26.9% daily, 20.2% monthly, and 18.4% every other week.

The document highlights that daily payments by employers are more pronounced in women-owned businesses, with 36% implementing this measure.

“Regardless of the size of the company, the preference for monthly payments increases as the company grows,” the report said.

Minors are working.

The survey shows that 6 out of 10 Maipe companies employ workers or assistants under the age of 18. This situation was even more pronounced at female-owned businesses, where only 22% of the surveyed companies said their employees were of legal age.

The commercial, services and agricultural sectors were the sectors most likely to report having children under the age of 18.

In El Salvador, the minimum age to work is 14, but both businesses and the state sector are betting on eliminating youth and child labor.

Source: Diario.Elmundo

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