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Increases tied to the Minimum Wage: how the increase in retirements, Boosting Work and Earnings will impact

2024-02-20T15:41:32.416Z

Highlights: Increases tied to the Minimum Wage: how the increase in retirements, Boosting Work and Earnings will impact. There are certain incomes tied directly to the minimum wage and are updated automatically. The increase in the Minimum, Vital and Mobile Wage (SMVM) from $156,000 to $180,000 since February 1, as announced by Minister Luis Caputo, affects other incomes of the population. Among them is the value of the Empower Work plans and the assets of a group of retirees and pensioners.


There are certain incomes tied directly to the minimum wage and are updated automatically.


The increase in the

Minimum, Vital and Mobile Wage

(SMVM) from $156,000 to $180,000 since February 1, as announced by Minister Luis Caputo, affects

other incomes

of the population,

which are automatically updated

every time they move that variable of the economy.

Among them is the value of the

Empower Work

plans and the assets of

a group of retirees and pensioners

.

Before, it also modified the salary floor of the Income Tax, but on this occasion that will not happen.

In March, the SMVM would go to $202,000.

Enhance Work

The aid received by the

million beneficiaries of Potenciar Trabajo

is equivalent

to half of the SMVM,

according to Resolution 121/2020 of the Ministry of Social Development.

Therefore, these plans would go from $78,000 in December to $90,000 in February and to $101,000 in March.

They would have the same loss of 20% versus inflation as those who collect the SMVM.

Video

The presidential spokesperson, Manuel Adorni, confirmed the sum of the vital and mobile minimum wage.

Retirements

More than

1.3 million retirees and pensioners

who retired with

30 or more years of effective contributions,

without resorting to moratoriums, will receive an improvement in February.

This is because, since 2018, this group of retirees cannot collect less than 82% of the SMVM.

82% of February's SMVM is equivalent to $147,600 and the minimum asset is 105,713.

Therefore, they must receive the difference between what they already received ($22,207) and what they should receive (a total of $41,887).

In March, by raising the SMVM to $202,000, these retirees

would also receive a bonus

because the minimum asset would be around $137,000 and 82% of $202,000 would add up to $165,400

The February amount is added to the $55,000 bonus they received in December, January and February.

And also to the value of the bonus that is set for March.

This additional is because article No. 5 of law 27,426, approved in December 2017, specifies that retirees and pensioners “with 30 or more years of service with effective contributions” will receive “a monetary supplement until they reach a pension asset equivalent to the eighty-two percent (82%) of the value of the Minimum Living and Mobile Wage.”

Retirees and pensioners who receive the minimum salary and retired using moratoriums do not receive that extra.

Retirees and pensioners with medium and higher salaries do not receive this supplement nor the bonuses that were granted during these years.

Income Tax

The law set the Earnings salary floor at 15 SMVM at the values ​​in effect on January 1 and July 1.

As the Government “skipped” the January SMVM increase, on this occasion the

Earnings salary floor remains at the same value as December, $2,340,000

(15 x $156,000).

It should only be modified in July, so in real terms it would have a strong reduction due to 6-month inflation.

NE

Source: clarin

All business articles on 2024-02-20

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