If we take into account the loss that retirees had compared to inflation in December and January and that the 27% increase in March did not cover,
the Government should give them
a 25% increase in April and add February inflation (13.2%), that is,
an increase of 41.5%, including the bonus
.
If this were to happen, and pensions were adjusted for inflation
with a lag of two months - as provided for in the bills -
, whoever earns the minimum, including the bonus, would end the year with
a real annual income practically equal to that of the year. 2023
.
And the retiree without a bonus would end the year with
a loss of 16% compared to 2023
.
In other words, many thousands of retirees would end up with a seventh consecutive year of loss of purchasing power.
The calculation is from IARAF (Argentine Institute of Fiscal Analysis), which assumes that the bonds would be reached by these increases.
For this reason, the Report adds that if the Government grants a 10% increase in April, as Guillermo Francos anticipated, in addition to February inflation, that is, an increase of 24.5%,
retirees with the minimum who receive a bonus will end up the year with a loss of purchasing power of 10% compared to 2023.
"In the case of a retiree who does not receive a bonus, the annual loss will be 24%. Clearly,
a 10% plus does not compensate for the loss of the first 3 months of the year
, the relative dynamics of the retiree being much worse than does not charge bonuses,” the report maintains.
With the 20.6% increase in January inflation that some opposition projects want to give plus February inflation (13.2%), the increase in April would be 36.5%, assuming they are cumulative.
Otherwise, the increase would be 33.8%.
These numbers are key because
the different projects presented in Congress do not compensate for the loss of retirement and pension purchases
in recent months, aggravating the deterioration of recent years.
Meanwhile, for the Congressional Budget Office (OPC), the salaries not reached by the bonuses had “a real reduction of 43% year-on-year during the first two months of 2024, while the loss of the minimum salaries with the bonus included was 27%. .8% year-on-year.”
With the 27.18% increase in March and the bonus of up to $70,000, minimum wage retirements and pensions
are collecting a total of $204,445 gross.
The total breaks down to $134,445 plus $70,000.
Then in April, 10% or 20.6% would be applied, depending on the different initiatives, plus the February CPI, but
it is not expressly clarified whether these increases will be applied to the gross amount of $134,445 or $204,445.
Retirees and pensioners with salaries greater than $204,445 will receive the 27.18% increase before the end of the month and will not receive any bonus.
Given the sharp decline in retirements with or without bonuses in recent years, according to the Paz Zurita Study, “
mobility through IPC does not recover what was lost
- which is lost forever unless the retiree makes a judicial claim.
And as long as salaries are not updated by the CPI, the flattening of pensions will continue, and new retirees will continue to lose purchasing power from their initial salary.”
This loss of initial salary is because at the time of retirement, initial salary is determined based on the average salary of the last 120 updated months.
And this update is applied based on a coefficient that is calculated according to the salary evolution of registered workers (RIPTE -
who are declining
- with a delay in relation to inflation.
NE