Uruguay’s Mujica puts his money where his mouth is with whopping donations

Mujica’s generosity runs parallel to a government announcement that minimum wage will rise more than 13 percent in 2015.

Uruguay’s outgoing President Mujica is known world-wide for his generosity and humble lifestyle, but his revelation Friday that he donated US$550,000 over during his five years as president will still come as a shock to many who are unused to politicians practicising what they preach.

“You can talk all you want, but put your money where your mouth is,” Mujica said on his regular program on Radio M24​.

The large bulk of the money – US$400,000 – was donated to the Plan Together, a social program that supports vulnerable families in the South American nation.

The leader donated the rest back to his political movement, the Broad Front, which has carried out huge progressive social reforms since it was first elected to lead Uruguay in 2005.

In an interview with teleSUR in October, Mujica said that people “who like money too much must be kicked out of politics.” With regard to his famous austere life, he said that “I travel in life light in luggage, so those things don’t rob me of my freedom.”

Watch Mujica’s interview with teleSUR in full:

In a different interview with The Economist he said, “I believe that the wealthiest should pay to eliminate world poverty,” proving Mujica practices what he preaches.

Mujica, whose presidency is limited to one term in the constitution, will soon hand over the Presidential sash to his party mate Tabare Vazquez, who won electionsin November. The Broad Front, is expected to continue progressive social reform under its new leader, who had been president prior to Mujica from 2005-2010.

Another Minimum Wage Hike

Setting the scene for more reforms to come, the government announced a minimum wage increase by 13.1 percent in January on its official website Thursday.

In what have become annual rises under Mujica, this year’s increase will see wage growing from 8,960 pesos to 10,000 pesos, or US$363.50 to US$405.20 – equivalent to a 13.1 percent rise. In 2012, the minimum wage was just 7,200 pesos.

This contrasts starkly to the situation in the United States and Europe, where harsh austerity measures to overcome 2008’s financial crash have curtailed significant minimum wage increases.