The Salary Increase That Disappeared

“Before, 100 pesos bought more” is a phrase the author says has become increasingly common in family conversations, among friends and after trips to the market. The same 100 bolivianos remain 100 bolivianos, but they buy less and force families to calculate more carefully before reaching the checkout.

The author points to a recent El Deber report titled “In one semester, the purchasing power of the minimum wage fell by up to 29%.” Bolivia’s National Minimum Wage rose this year from Bs 2,750 to Bs 3,300, but the depreciation of the boliviano and the rising cost of living sharply reduced the real value of that income.

That distinction turns the issue from a purely economic question into a labor debate. Salaries are often measured by the figure on a payslip, making a larger number appear to mean higher earnings. But the real value of income emerges when it is converted into food, transport, rent, medicines, education and the other costs of daily life.

“

Before, 100 pesos bought more.

The author argues that the discussion should focus not only on how much wages increased, but also on how much workers’ lives actually improved. A raise can be real in nominal terms and still feel inadequate when monthly expenses come due. Currency depreciation makes the gap more visible in an economy that relies heavily on imported products, inputs and goods. Workers feel the pressure at the market, while companies face it when buying raw materials, purchasing supplies or maintaining operations.

This creates one of the moment’s most difficult contradictions: workers need higher pay because life costs more, while businesses are also under pressure from rising costs.

“

In one semester, the purchasing power of the minimum wage fell by up to 29%.