To catch up with this year’s inflation, the quarterly increase in pensions and pensions in December it should be 34% or more.
The issue worries the government about the political and social impact of the difference with the increase much lower than what the mobility formula would yield.
Then in Social Security they started studying different alternatives that go beyond the bonus, due to its limited nature (it does not cover all retirees) and is not integrated into the assets.
According to official data, retirees, retirees and other social benefits have received three cumulative quarterly increases this year: March 12.28%, June 15% and 15.53%, in total 49.2%.
This means that for inflation forecast in December to match 100% or more, the increase from next month (including December, January and February) would have to be 34% or more.
However, it is estimated that mobility in December – several variables to calculate the increase are not yet known – could be around 18/20% and add 80% end-to-end (December 2021 / December 2022) against the 100% or more.
In that case, the year-over-year loss of purchasing power would be approximately 10% or more in a single year. And the loss would extend into January and February because assets would remain at the same value while inflation “would do his thing”.
With the Macri government formula – since all the variables of the formula are known because they are based on second quarter indices – the December increase would be 17%.
The specialist Elsa Rodriguez Romero told Clarín that “in 2022 the worker lost purchasing power, but unfortunately retirees much more. They both lost to the cost of living.
But the fact that a pensioner has lost income to a worker is unacceptable and forces us, as a country, to violate various clauses of international human rights treaties. And he added: “in December the increase in pensions and pensions should be 34%, therefore recover the loss of purchasing power, At least for this year “.
In recent years, – without considering the 2020/2021/2022 bonuses because they were not integrated into the assets and did not cover all pensioners and pensioners – the pension deterioration process had the following path:
• Between September 2017 (based on the change of mobility during Mauricio Macri’s government, and December 2019, retirements and pensions and other social benefits it worsened by 19.5% compared to inflation.
• In 2020, already with Alberto Fernández, with the increases differentiated by decree, pensions and pensions increased between 35.3% and 24.3% against an inflation of 36.1%.
• In 2021, with inflation of 50.9%, end-to-end increases were 52.7%.
• In 2022, the increases up to November were 49.2%.
The percentage increase according to current mobility should be known on Thursday 10th when INDEC releases the September Wage Index, a key variable of the result of the increase that should govern from December 2022 to February 2023.
Source: Clarin
