After negotiations with the opposition, without success, the Government of
Javier Milei decided to modify the retirement formula for DNU.
The increases will be due to the inflation index and would begin to be implemented in April salaries.
In this way, the minimum asset, which is $134,445, would rise to approximately $175,000 in April.
In this formula, the $70,000 bonus would not have any increase in April.
If the latter is confirmed, retirees and pensioners with minimum income would have a lower percentage increase than those with average income and higher pensions.
Below are the 10 keys about the project the Government is working on:
1. The Government would modify, through a DNU,
the retirement mobility formula
of the General Regime that covers 7 million retirees and pensioners.
It would not include special regimes, such as those of national teachers, university teachers, Luz y Fuerza, diplomats, the Judiciary, among others, which would continue with their quarterly increases.
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Starting in May, the Government intends for pensions to be updated by the monthly CPI.
2. As confirmed by the Government, the mobility index that will be used starting in April
will take into account the February CPI
and will include a compensation of
12.5% of the assets for the inflation
accumulated in the first months of the year.
Then, starting in May, it would be adjusted monthly by the CPI with a lag of 2 months.
And there would be no recovery for the loss of recent years.
Nor does a recovery improve real wages or the economy.
For example, in May the CPI for March would be computed.
In previous versions the official adjustment for compensation was 10%.
The majority of the opposition proposes that this compensation be 20.6%, the same percentage as January inflation.
And that difference was hindering the treatment of a law in Congress.
3. The change in mobility through a DNU will surely open a political and judicial debate, even more so because Congress is working and the treatment of this important issue for 7 million retirees and pensioners and another 10 million children whose parents earn The AUH or the family salary was expanded after the withdrawal of the megaproject from Congress.
On the other hand, what happened during the Government of Mauricio Macri and Alberto Fernández would be repeated: that the combination of formulas will start with an additional real loss of assets.
4.
The April increase would be the equivalent of February inflation
(13.2%)
plus a plus
of 12.5% would take the increase to 27% and would be applied to March current assets.
5. This increase would not include the bonuses that by decree No. 268/2024 were already published in the Official Gazette by which the Government decided to maintain the value of the bonus in April at up to $70,000, as received by retirees with minimum salaries. in this month of March.
6. Currently the minimum asset is
$134,445.
It would go up to approximately
$171,000 in April, plus the $70,000 bonus,
it would total
$241,000
and would represent an increase of 20%. If the bonus were included, the total would rise to about $263,000.
7. If it is confirmed that the increase does not apply to bonuses, retirees and pensioners with
minimum income would have a lower percentage increase
than those with average income and higher pensions.
8. In relation to December, the accumulated increase in salaries
as of April would be between 52% and 64% versus an inflation of around 72%
(36.6% January-February + 15% March + 10% April).
Due to the loss that retirees had against inflation in December, January and February (71.3%) that the increase in March (27.18%) did not cover, according to Nadin Argañaraz, the increase in salaries should rise to 25% in April and add February inflation (13.2%), that is, an increase of 41.5%, including the bonus.
And in May provide March inflation.
9. If these data are confirmed, the change in the mobility formula, as happened under Mauricio Macri and Alberto Fernández,
would start with a decline in retirement amounts
, above the losses suffered by retirees and pensioners during those two previous governments. with the aggravating factor that the lowest assets would suffer a greater loss.
10. Mobility due to inflation from April onwards does not recover what was lost in recent years, which, on average, was 50%,
but rather consolidates that loss for life.
S.N.