The Peruvian government is proposing a change to public sector wage negotiations, limiting collective bargaining agreements to temporary economic benefits. The Ministry of Economy and Finance (MEF) included this proposal within a supplemental credit project for 2026. Currently, negotiations can result in permanent wage increases. Unions are strongly opposing the measure, arguing it undermines labor rights established under Law 31188. They claim the proposal effectively introduces an expiration date to wage agreements, diminishing the value of collective bargaining. The government’s aim is reportedly to control public spending and ensure fiscal sustainability. The proposed change is expected to face significant resistance from public sector unions.