In August, for second consecutive month formal wages, with an average increase of 4.6%, lost against inflation, which rose to 7%. In July, on average, the wages recorded, with contributions to the Social Security, had increased by 5.3% against an inflation of 7.4%.
Therefore, in the last 2 months, the price increase was 14.9% and formal wages only increased by 10.1%.. A loss of 4.1% in 2 months.
In the first eight months of this year, formal wages accumulate an increase of 51.7% against an inflation of 56.4%, a decrease of 3%. Compared to a year ago, wages increased by 72.3% and inflation by 78.5%. It equates to a loss of 3.5%.
The salary data are official and correspond to RIPTE (Taxable Remuneration of Permanent Workers)whose monthly series begins in July 1994.
According to the LCG consultant the decrease in the purchasing power of the wages of workers enrolled in July this year compared to November 2017, the latest ceiling, is 20.5%.
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 declared continuously in the last 13 months.
In August, gross salaries (without discounts) with contributions averaged $ 155,611.28 according to official data based on amounts reported by companies to Social Security. A year ago, it was $ 90,340.08.
Since it is the gross salary, to determine the living income, at $ 155,611.28 it would be necessary to deduct the worker’s pension and health contribution (17%) and possibly add the family salary per child.
According to the Government, accounting salaries “had lost 21.6% of their real value between December 2015 and December 2019”, as the basis of decree 578/2022 states and in 2020/2021, with ups and downs, accompanied the inflation, but there has been no recovery since the end of 2019, as had been an official promise. And so far this year there is an additional 3% loss.
Overall, employees with contributions to ANSES amount to approximately 7.5 million, approximately 75% of the nearly 10 million registered employees with a dependent relationship. 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, salaried without pension reduction and informal self-employed).
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. That threshold is once again obsolete and more workers are affected by that tax.
It is also used to update the family income ceiling for collecting family allowances once a year, a very outdated ceiling that is leading more workers to lose their family salary payments per son or daughter and each month increases the share paid by the family. employers to the sickness fund for COVID insurance.
Source: Clarin
