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Retirements and pensions: as the old formula follows, they will have a deterioration of 36% in just 3 months

2024-01-24T13:28:30.431Z

Highlights: Retirements and pensions: as the old formula follows, they will have a deterioration of 36% in just 3 months. Only in April will salaries begin to receive an automatic update due to monthly inflation. In December-January-February, the accumulated increase in assets was 20.87%. In 2023, with the inflationary jump in December, retirees and pensioners had a loss of between 14.2% - in the case of those who received the bonus for minimum salaries - and 32.3% for medium salaries.


Only in April will salaries begin to receive an automatic update due to monthly inflation


In just 3 months (December, January and February)

retirements and pensions will have a deterioration of almost 36%

, above what they deteriorated in the last 6 years.

It's because the old formula is still in force.

The Government's proposal is that only in April, if the proposal to modify the pension article of the megaproject is approved, a new formula will be applied.

On the other hand, this Wednesday morning it was confirmed – according to decree 81/2024 that was published today in the Official Gazette –

that retirees with minimum salaries will collect in February the bonus of up to $55,000

that they received in January and December.

And also the rest will earn the same in February as in January and December.

Inflation in December of 25.5% and a projection of price increases in January of 25% and another 20% in February,

the accumulated increase in December-January-February would be 88.3% and in December the increase in assets was 20.87%.

Consequently, retirements and pensions will have

a deterioration of almost 36%

with the aggravating factor that the lowest salaries no longer receive the VAT refund of up to $18,800.

In March, retirements and pensions will receive the increase according to the current mobility formula

.

It is estimated that it could be around 30% versus inflation in the first quarter of the year that could be around 75/80%.

This sharp deterioration adds to that of recent years.

At December 2023 values, according to IARAF (Argentine Institute of Fiscal Analysis)” given that the average monthly inflation of the

last 6 years was 5%, real retirements recorded losses throughout the period.

If the percentages of lost assets are added between 2018 and 2023, it appears that without bonuses they would be equivalent to 13.7 minimum assets in 2017 (114.2% annually for 12 months) and with bonuses equivalent to 9.4 minimum assets in 2017 ”.

In 2023, with the inflationary jump in December,

retirees and pensioners had a loss of between 14.2%

- in the case of those who received the bonus for minimum salaries -

and 32.3% for medium salaries and more high.

In this way, between September 2017 and December 2023,

the average retirement deterioration is 40%,

with a drop in minimum salaries of 30% and medium and higher salaries of 55%.

The official numbers indicate that, in December 2022

, the minimum salary was $50,124 plus a bonus of $10,000

(total $60,124) and in December they collected a minimum of $105,713, plus $55,000 ($160,713).

It represents an increase of 167.3%.

Meanwhile, annual inflation was 211.4%.

It represents a loss of 14.2%

Those who did not collect bonuses during 2023 had an increase of 110.9% versus an inflation of 211.4%.

It represents a drop of 32.3% in just 12 months.

If we add January inflation, the drop could be around 40% or more.

S.N.

Source: clarin

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