The keys to understanding inflation in Argentina 3:20
(CNN Spanish) --
(CNN Spanish) --
The minimum wage will increase by 20% in Argentina between December and March, going from $57,900 to $69,500, according to the agreement signed this Tuesday after negotiations between the Government, workers and employers.
The increase will be made in monthly tranches of 7% in December, 6% in January, 4% in February and 3% in March.
In total, the minimum wage will register an increase of 110.5% in the parity year, from March 2022 to March 2023.
"What we are seeing today is precisely the result of a consensus between those who work and employers and that is something very important and very necessary in the times we live in," said President Alberto Fernández during the signing of the tripartite agreement.
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The Government called the meeting of the three parties, according to the state agency Telam, in the context of the sharp rise in prices that the South American country is experiencing.
The link between the increase in the minimum wage in Argentina and inflation
The Minister of Labor, Raquel Olmos, explained that with the increases planned for December and January "they sought to restore the purchasing power" of those who receive the minimum wage and that the percentages for February and March respond to the government's plan "to break the high inflation".
The Consumer Price Index increased 6.3% in October compared to September, according to the most recent statistics published by Indec.
The data corresponding to the month of November will be known on December 15.
From January to October inflation was 76.6%, while if calculated on an interannual basis the increase in prices was 88%.
The largest increases last month were in the communications sector, especially due to increases in telephone and internet services, followed by the category of housing, water, electricity, gas and other fuels.
Here came into play the changes in the segmentation of gas and electricity rates that the Government launched this year.
The administration recalled that this increase in the minimum wage is added to the 40% increase in the Family Benefit (Food Card) defined on Monday, which will make people with one child, pregnant or disabled receive $12,500, those who have two receive $19,000 and those with three or more receive a total of $25,000.