The increase in the minimum wage would not be enough to beat inflation

The Salary Council agreed yesterday an increase for the minimum salary of 20% until March, with which the minimum credit will be located in December at $61,953, and despite this, the income of workers will continue below inflation.

The increase of minimum salary It will be paid in four monthly installments: 7% in December, 6% in January, 4% in February and the remaining 3% in March. This means that the formal entrance floor will accumulate in December a rise of 93%, and it is estimated that annual inflation will have a floor of 95%, even 100%.

The increase in the minimum wage would not be enough to beat inflation

In this sense, the minimum salary that earn more than 6 million formal workers in the country, will lose again against inflation. Even with next month’s increase, the figure is not enough to cover the cost of the basic food basket, which in October was $62,106.

In other words, Argentine families whose income is only minimum salary they will remain below the indigence line, since it is estimated that both the basic food basket and the total basic basket, which does not include the cost of housing, will continue with increases in the remainder of the year.

Prices increased 76% in the first 10 months of the year.

Retirees experience a similar scenario, since the minimum retirement received by 1.2 million people will reach an accumulated increase of 72.6% this year and will be located in December at $50,155, that is, $11,951 less than the value of the basic food basket. october.

It should be remembered that the increase for the minimum salary also serves as a reference for informal workers who represent 40% of the labor market; In addition, the increase directly impacts the amount of social plans financed by the Government, such as Empowering Work, which reaches 1.36 million people.

Salaries are not enough to cover basic needs.

In this sense, the Government will have to redouble its efforts to lower inflation or re-implement extra measures such as the payment of bonuses; However, this not only does not solve the underlying problem, but also does not reach the entire population.

The differences in the negotiation

At the meeting held this Tuesday by the Salary Council, the Autonomous CTA did not support the 20% increase until March, since the workers union led by Hugo Godoy intended to bring the minimum credit to $70,000 in December.

The Wage Council will meet again early next year.

For her part, the Minister of Labor, Kelly Olmos, explained that if one takes into account that last March the salary floor was $33,000, the total annualized increase to March 2023 will be 110.5%.

Source link