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The minimum wage, vital and mobile in a tailspin: lost 14 points against inflation in 2020

2021-01-18T13:10:44.837Z


This loss in one year is added to the 24.4% that fell with the management of Cambiemos. The 760,000 beneficiaries of social plans earn half the minimum wage.Blue dollar today: how much it contributes this Monday, January 18


Ismael Bermúdez

01/18/2021 9:24 AM

  • Clarín.com

  • Economy

Updated 01/18/2021 9:58 AM

During 2020, the living and mobile minimum wage (SMVM)

lost “by a landslide”

against inflation.

In nominal terms, in one year it went from

16,875 pesos

for monthly workers to

$ 20,587.50

, an increase of just

22%

, compared to an average inflation of

36.1%

.

It represents an end-to-end

loss of 14.1%

.

Regarding the basket of indigence, which the INDEC will report this week and which in the City of Buenos Aires was

43.9%,

the loss

will exceed 15%,

If to this real drop in the minimum wage during the first year of Alberto Fernández's administration is added the 24.4% decline that he had during the 4 years of Macri administration, the collapse of the minimum vital and mobile wage (SMVM)

would accumulate a loss of 32% in 5 years

.

This decline will be accentuated in the coming months because the SMVM is expected to rise to

$ 21,600

in March

, an increase of

almost 5%

that is discounted

will be below the price increase

in these months.

That is why

Artemio López

from the Equis Consultant estimates that "when the minimum wage reaches $ 21,600, it

would be 20% below the level prior to the inauguration of Cambiemos

."

The Labor Contract law assigns

three characteristics

to the minimum wage, vital and mobile.

It is the lowest remuneration that the worker without family charges should receive in cash for their working hours.

It must ensure

adequate food, decent housing, education, clothing, health care, transportation, recreation, vacations and social security coverage

.

And it must be adjusted periodically according to

variations in the cost of living

.

It is more than evident, and for a long time, that

the minimum wage does not fulfill these functions

and affects a large number of unregistered or informal workers who take that parameter as a reference, in labor agreements with low incomes and in formal workers " out of agreement ”.

It also

impacts the 760,000 beneficiaries of social plans 

who receive

half the minimum wage

($ 10,294) as reported by the Minister of Social Development,

Daniel Arroyo

.

For a typical family (married couple and two children), the minimum wage is far from covering the value of the poverty basket, even if both spouses work.

Subtracting the retirement and health discounts (17%), plus the allowances for children, the total minimum wage income is around

24,000 pesos

compared to a family poverty basket valued by the INDEC in December at

$ 55,000.

And by legal definition, the minimum wage

should far exceed

the value of the family poverty basket.

For this reason, Artemio López concludes that "with the current Minimum Vital and Mobile Salary

it is only possible to access 40% of the value of the Basic Poverty Basket

for a metropolitan type household."

Source: clarin

All business articles on 2021-01-18

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