Although Javier Milei said a few days ago that the Government would not set the minimum, vital and mobile wage, and after the Minister of Economy, Luis Caputo, subsequently announced an increase, the Government made official this Wednesday an increase that will bring the figure to $180,000 in February and $202,800 in March.
In relation to estimated inflation,
the deterioration in just 3 months would be more than 20%
.
The thing is that, in relation to December, the increase to March would be 30%, well below inflation, deepening the deterioration of recent years.
The measure was confirmed in the latest edition of the
Official Gazette
through resolution 4/2024 of the Ministry of Labor, Employment and Social Security, which bears the signature of its owner, Omar Yasin.
The regulations, according to article 1, cover “all workers included in the Employment Contract Regime approved by Law No. 20,744 (to 1976) and its amendments, in the Agrarian Labor Regime, of the National Public Administration and of all entities and organizations of the National State that act as employers.”
In the first section, “a”, establishes the minimum vital and mobile wage “
as of February 1, 2024, at $ 180,000
for all monthly workers who complete the full legal working day, in accordance with article 116 of the Employment Contract Regime approved by Law No. 20,744 (1976) and its amendments, with the exception of the situations provided for in articles 92 ter and 198, of the same legal body, which will be received in due proportion;
and
$900 per hour for daily workers
.”
In turn, in “b”, it indicates that the figure “
as of March 1, 2023 (sic)”, will be $202,800
for monthly workers and
$1,014 for daily workers
.
In 2023, the minimum wage had an increase of 151.8% compared to an inflation of 211.4%.
A loss of 19%.
In December it was $156,000 for those paid monthly or $780 per hour.
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%.
The minimum wage is key, among other things, for determining the amount of the benefit of the Empower Work plan, the value of minimum pensions and the salary floor from which workers are covered by the Income Tax.
Last week, officials from the Ministry of Labor, union representatives and employers met for the first time since the beginning of Milei's administration within the framework of the Wage Council, but they did not reach an agreement.
IS