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December 29, 2021
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The wage adjustment for rural workers and a measure to encourage employment

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Employers and workers in the rural sector agreed on the conditions of the new collective agreement, which will be in force for the next two years until June 2023. In line with what was observed in other cases of the ninth negotiation round, the salary formula is located outside the economic guidelines suggested by the government.

Salaries that include workers in livestock, agriculture, dairy farming and related activities will have semiannual adjustments with a recovery component greater than that suggested by the economic team.

The first increase that is retroactive to July 1, 2021 is 2.5%, and is made up of 1.8% projected semi-annual inflation and 0.7% salary recovery.

In this way, and as an example, the monthly salary of a specialized dairy farm laborer became $ 26,483, as was the same category in rice plantations. In the other sectors, the award for that category rose to $ 26,776. The details for the rest of the categories can be consulted on the website of the Ministry of Labor and Social Security.

The next salary correction will be in a few days. In January 2022 the compensation adjustment will be 4.4% (3.7% inflation and 0.7% recovery).

Then in July 2022 there will be a 3.6% adjustment (2% inflation and 1.6% recovery). Finally, in January 2023, wages will increase 3.5% (3% projected inflation and 0.5% recovery).

In addition, an inflation correction is included that will be activated at the end of the period if necessary. In the event that the evolution of prices is lower than the adjustments granted for inflation during the agreement, the difference will be charged to the salary recovery item in the next negotiation period.

Is abouthe first agreement approved in the rural sector after a long time. The conditions of the previous agreement had been set in mid-2020 in the midst of a pandemic. On that occasion there was no negotiation and the formula proposed by the government that ensured a loss of wages was applied behind closed doors. And before, in the two previous rounds the rural unions withdrew from the negotiation and it was the Executive Power that set the minimum wages and adjustments.

Promotion of employment

Other novelties include the creation of a new job category that aims to “Incentivize” job creation in the sector, according to the minutes of the agreement.

The worker who is hired under this modality of “Job promotion” will have a remuneration of $ 20,000 (or its daily equivalent of $ 800), from January 2022, more fictional for food and housing, depending on the sector to which it corresponds.

The salary will be adjusted to the same extent and in the same opportunities as the rest of the workers. In addition, you will only be able to perform tasks corresponding to categories below specialized without including the latter.

The permanence in this category will be for a maximum period of 6 months that may be extended for another three months.. Then the worker must go to the corresponding category. In case of being dismissed within 6 or 9 months, the company will not be able to hire another worker under the same modality, unless the dismissal has been for notorious misconduct.

As a requirement for companies that want to hire within this category, it is established that they have not fired any seasonal or permanent worker, nor have they sent personnel to unemployment insurance in the 30 days prior to hiring. This with respect to workers who cover categories up to specialized.



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