Formal wages: In June, they rose 5.8%, slightly above inflation

For joint agreements and salary adjustments for those who work “out of contract”, in June, On average, formal or registered salaries, with contributions to Social Security, they increased by 5.8% against an inflation of 5.3%.

In the first 6 months of this year, formal wages accumulate a slight advantage, with an increase of 37.7% compared to 36.2% in the price index. On the other hand, in relation to the 39.9% increase in food prices, the item that has the greatest impact on the consumption basket of employees, there is a setback.

Compared to a year ago, registered salaries had an increase of 67.2% and the price index was 64%.

These data are official and correspond to the RIPTE (Taxable Remuneration for Permanent Workers), whose monthly series begins in July 1994.

The RIPTE is calculated on the basis of the average salary subject to contributions to the Argentine Integrated Social Security System (SIPA) received by employees in a dependent relationship and which have been declared continuously in the last 13 months.

In June, gross salaries (without discounts) with contributions averaged $ 141,289.40, according to official figures based on amounts reported by companies to Social Security.

A year ago, it was $ 84,513.57. It represents a 67.2% increase over the 64% increase in the consumer price index.

Since it is a gross salary, to determine the living income, at $ 141,289.40 it would be necessary to deduct the pension and health contribution of the worker (17%) and possibly add the family salary per child.

In recent years (2018/2019) the RIPTE has fallen by 18% against inflation and in 2020/2021 it accompanied inflation with ups and downs, but there has been no recovery compared to the end of 2019.

In total, the employees in a dependent relationship with contributions to ANSES amount to about 7.5 million, about 75% of the nearly 10 million employees in a registered relationship of dependency. The rest contributes to the provincial savings banks or other schemes.

These 10 million, in turn, represent half of all formal and informal jobs in the country (single-tax, self-employed, wage-earners without pension reductions and informal self-employed workers).

As a wage index, the RIPTE is used every three months (March, June, September, December) to fix half the percentage of mobility for retirement, pensions and other social benefits and in the calculation of compensation for accidents at work.

It is also used to update the minimum non-taxable income tax annually and to update the “floor” salary, initially by $ 150,000 and now by $ 280,792 to be exempt from paying that tax.

It is also used to update the family income ceiling once a year to collect family allowances. And every month the amount paid by employers to the sickness fund for COVID insurance.