The year 2026 has brought a challenging scenario for private education in several Latin American countries. The increase in the minimum wage, although celebrated as a social and labor achievement, has had a direct impact on the operating costs of private schools. Many of these institutions, especially small and medium-sized ones, are struggling to sustain their teaching and administrative staff, leading to closures, mergers, or significant adjustments in their management models. This article explores the causes of this situation, its consequences, and the possible alternatives to face the challenge.
The rise of minimum wage in 2026
The increase in the minimum wage in 2026 was a measure promoted by governments to protect workers against inflation and ensure a decent income. In countries such as Mexico, Colombia, and Bolivia, the increments ranged between 8% and 12%, while in other contexts the adjustments were even higher.
While this measure directly benefits millions of workers, it also implies a considerable increase in the operating costs of private institutions, which must comply with the new salary provisions for their teaching, administrative, and service staff.
Impact on private schools
Private schools depend mainly on tuition fees paid by families. With the rise in minimum wage, payroll costs increased significantly, forcing many institutions to make difficult decisions:
- Raising tuition fees, which generated resistance among families and a decrease in enrollment.
- Reducing staff, affecting educational quality and personalized attention.
- Merging with other institutions to share expenses and resources.
- In extreme cases, closing their doors due to lack of financial viability.
This impact has been more evident in small and medium-sized schools that do not have large financial reserves or the backing of educational corporations.
Consequences for families
The closure of private schools in 2026 has caused concern among families who relied on these institutions for their children’s education. The main consequences have been:
- Forced transfer of students to public schools, which in many cases lack the same infrastructure or specialized programs.
- Increase in tuition fees in the schools that managed to remain open, limiting access to private education to families with greater purchasing power.
- Loss of educational continuity, especially in bilingual programs or alternative methodologies.
- Greater pressure on the public education system, which must absorb thousands of additional students.
Consequences for teachers
Teachers and administrative staff have also been affected by this situation. Although the rise in minimum wage represents a benefit in terms of income, the closure of private schools has led to:
- Massive layoffs in institutions that could not sustain their payroll.
- Relocation of teachers to public schools, where working conditions may differ.
- Job instability and loss of long-term educational projects.
- Migration of professionals to other sectors, such as corporate training or online education.
Opinions from specialists
Educational analysts and economists have pointed out that the closure of private schools is a foreseeable consequence of the rise in minimum wage, especially in institutions with reduced financial margins. However, they also emphasize that this situation reflects the need to rethink the financing model of private education and to establish support policies that allow its sustainability.
Some specialists suggest that governments could implement subsidies or tax incentives for small schools to avoid massive closures and ensure diversity in the educational offer. Others believe that private education must adapt to new models, such as digitalization and hybrid teaching, to reduce costs and expand its reach.
Possible alternatives
Faced with this scenario, private schools have begun to explore alternatives to cope with the impact of the rise in minimum wage:
- Implementing hybrid teaching models that combine face-to-face and virtual classes to reduce infrastructure costs.
- Establishing partnerships with companies and organizations to finance educational programs.
- Offering scholarships and discounts to low-income families to maintain enrollment.
- Diversifying educational services, including extracurricular workshops, language programs, and cultural activities.
- Optimizing administrative management through the use of technology and digital platforms.
Impact on the public education system
The closure of private schools has also had a direct effect on the public education system. With the arrival of thousands of additional students, public schools face challenges such as:
- Overcrowding in enrollment and the need to expand infrastructure.
- Greater demand for teachers and administrative staff.
- Adjustments in educational programs to serve a more diverse population.
- Increase in operating costs for the State.
This impact forces governments to reinforce investment in public education and to ensure that quality is not affected by the additional pressure.
Conclusion
The closure of private schools in 2026 due to the rise in minimum wage reflects the complexity of balancing labor policies with the sustainability of key sectors such as education. While the wage increase is a step forward in terms of social justice, its collateral effects have put at risk the continuity of thousands of private educational institutions. The challenge now is to find solutions that allow maintaining diversity in the educational offer, guaranteeing job stability for teachers, and ensuring that families have access to quality options.