The Limited Times

Now you can see non-English news...

Promote Work: social plans would stop receiving 50% of the new Minimum Wage

2024-02-21T13:21:40.109Z

Highlights: The Government will modify the calculation of the value of the Potenciar Trabajo Plan. Until now, every time the Minimum, Vital and Mobile wage (SMVM) rose, so did this social assistance. Now it is being analyzed to "unhook it" and set its value by another criterion that could be known in the coming days. Since 2011, the SMVM has been in decline, having lost 45% until December 2023. Now the loss of the first 3 months of 2024 is added.


They analyze "disengaging" the SMVM plans and establishing another criterion to update that benefit.


In the next few hours

the Government will modify the calculation of the value of the Potenciar Trabajo Plan

.

Until now, every time the Minimum, Vital and Mobile wage (SMVM) rose, so did this social assistance.

But now it is being analyzed to "unhook it" and set its

value by another criterion

that could be known in the

coming days.

Until now, the

million beneficiaries of Potenciar Trabajo

received

50% of the SMVM,

according to Resolution No. 121/2020 of the Ministry of Development.

That Resolution

was not modified and is “still in force,”

as confirmed to

Clarín

by the Secretary of Labor.

However, other sources said that

the Government will modify Resolution 121/2020.

And from what different officials have been stating, the objective is to unlock the value of Empowering Work of the SMVM.

For example, Luis Caputo himself, after assuming office as Minister of Economy, said that

the Empower Work Budget would be frozen at the 2023 level

. However, despite the time that has passed, the Government did not take any measures and Resolution 121/2020 remains current.

That Resolution was partially modified because, through decree 125/2024, the Government decided to “transfer as of April 1, 2024 all of the holders of the Empower Work created by the Resolution of the former Ministry of Social Development N ° 121 of March 18, 2020 and its amendments, to the Labor Inclusion Program, within the scope of the

Secretary of Labor, Employment and Social Security,

of the

Ministry of Human Capital

.

In January, the beneficiaries of the Potenciar Trabajo Plan received $78,000,

the same as in December because there was no increase in the SMVM.

But now in February and March, the values ​​should change because the value of

SMVM will rise to $180,000

from February 1st and $202,800 from March.

Being linked to the SMVM, the value of Potenciar Trabajo suffered the same loss of purchasing power as the minimum wage.

In 2023, the minimum wage had an increase of 151.8% compared to an inflation of 211.4%.

A loss of 19%.

With 20.6% inflation in January, an estimated 18% in February and the same in March, in those 3 months the accumulated inflation would be around 68%.

Thus, the increase in the SMVM would represent less than half of the quarter's inflation.

A decline of 22%.

Since 2011, the SMVM has been in decline, having

lost 45% until December 2023.

Now the loss of the first 3 months of 2024 is added.

Source: clarin

All business articles on 2024-02-21

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.