In December the average salary of regular workers with social security contributions rose 5.4% from inflation that month was 5.1%.
This 0.3 point improvement was not enough to reverse the trend 2022 loss: accumulated formal employee wages an 89.3% annual increase against 94.8% inflation. It represents an average loss of 2.8%.
With this fall in the last 5 years the wage drop is 18.7% Y there has been no wage recovery during the current government. The sequence was:
• In 2018, the RIPTE (average salary) increased by 30.6% and year-on-year inflation was 47.6%. A loss of 11.5%.
• In 2019, the wage increase was 44.4% and inflation was 53.8%. A loss of 6.1%
• In 2020, wages increased by 34.9% and prices by 36.1%. A drop of 0.8%.
• In 2021, formal wages increased by 53.4% and the CPI by 50.9%. An improvement of 1.66%.
• In 2022, wages increased by 89.3% and prices increased by an average of 94.8%. A loss of 2.8%.
The salary data are official and correspond to the RIPTE (Retribuzione Taxabile Lavoratori Stabile), whose monthly series began in July 1994, and mark the phenomenal drop in real wages among registered workers. The greater the loss among unregistered wage earners.
The RIPTE is calculated on the basis of the average salary subject to contributions to the Argentine Integrated Pension System (SIPA) received by employees and declared continuously in the last 13 months.
From December, gross wages (without discounts) with contributions an average of $194,175.11 based on the amounts declared by the companies before the Social Security. A year ago, it was $102,589.87.
Since it is the gross salary, to determine out-of-pocket income, at $194,175.11 the worker’s retirement and health care contribution (17%) should be discounted. This would give take-home pay of $161,165.
Overall, employees with ANSeS contributions amount to approximately 7.5 million, approximately 75% of the almost 10 million employees registered. The remainder contributes to provincial savings banks or other schemes.
These 10 million, in turn, represent half of all formal and informal jobs in the country (single-tax payers, self-employed workers, wage earners without pension discounts and informal self-employed workers).
As a salary index, the RIPTE is used 90% from February to set one of the 2 prepaid increase variants and every three months (March, June, September, December) to set half the mobility rate of retirees, pensions and other social benefits and in the calculation of compensation for occupational accidents.
It is also used for update the non-taxable minimum income tax once a year. And the salary floor of the tax.
Furthermore, it is taken into account to update the Family Income ceiling once a year for the collection of Family Allowances, a much exceeded ceiling which is leading to more workers lose their family wages as a son or daughter. And every month the share that employers pay into the Sickness Fund for COVID insurance increases. That fee is $183 per employee and will be paid starting in February.
NEITHER
Source: Clarin
