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Minimum Wage: how much you lost against inflation in just 4 months


This week a new amount will be defined. The loss climbs to more than 10% in relation to the increase in the prices of basic foods.

The Minimum, Vital and Mobile Wage Council meets this Tuesday,

after between November 2022 - the month of the last meeting and increase of that Council - and March

the minimum wage has a real reduction of more than 5%.

"In other words, the meeting of this Council,

called for March 21,

will start from an extremely low floor in the value of the minimum wage," according to CIFRA (Center for Research and Training of the Argentine Republic).

Compared to 2015,

the accumulated loss exceeds 33%.

In November 2022, an increase of 20% was set in 4 tranches that brought the SMVM in March to $69,500.

Discounting inflation of 7% for this month, from November to March the average rise in prices would be around 27%.


the last increase in November was short

and this month the SMVM is 5.5% below the level of November.

In relation to the basic food and poverty basket, the fall, in relation to November, is

much higher since it would exceed 10%.

The CIFRA Report points out that

"the purchasing power of the minimum, vital and mobile wage shows a negative trend since 2011,

which was particularly strong in the last two years of Mauricio Macri's government as well as in 2020. This drop has been even greater than the actual loss of recorded wages”.

Then, “between 2021 and 2022, in a context of growing inflation, there were seven instances of updating the minimum wage, which failed to recover their purchasing power.

The year 2022 closed with an average fall in the real minimum wage of 1.3%

, which placed it 33% below the level of 2015”.

The Labor Contract Law assigns three characteristics to the minimum wage, vital and mobile.

It is the lowest remuneration that the worker without family responsibilities must receive in cash for his workday.

It must ensure adequate food, decent housing, education, clothing, health care, transportation, recreation, vacations and social security coverage.

And it must be adjusted periodically according to variations in the cost of living.

It is more than evident that at $347.50 an hour or $69,500 gross,

plus the eventual payment of the family wage per child, it is impossible to cover all the requirements set forth in the Labor Contract Law when the poverty basket for a typical family This month it is around $190,000, without computing the rent.

Thus, the SMVM is not minimal, it is not vital or mobile in relation to the rise in prices.

The minimum wage has an impact on the programs “Potenciar Trabajo”

(more than a million people) that earn half the minimum wage and


(35,000 people) women and


in situations of gender violence who receive a minimum wage for 6 consecutive months.

It also affects registered monthly or daily workers who earn less than the monthly or hourly minimum wage.

And indirectly as a reference to unregistered or informal workers.

It also influences the non-attachment quota of wages that is equivalent to the amount of the minimum wage, except for alimony debts.

From this value, an increasing percentage is applied to the difference between the salary received and the SMVM.

In addition, it adjusts the minimum retirement of those who retired with 30 years or more of contributions without resorting to the moratoriums.

In these cases it must be equivalent to 82% of the SMVM.

For its part, since February 2023, the value of the private medicine quota is capped at 90% of the RIPTE of the immediately preceding month and is applied to prepaid plan holders who have a net income of less than 6 SMVM.


look also

Budget: the Government adjusts the family salary strongly and hits the middle class squarely

Source: clarin

All business articles on 2023-03-20

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