The fragility and mediocrity of the Argentine labor market has three main sides: an obsolete legal framework unrelated to the work of the future, a working majority living in the informal sector and a constant and prolonged wage deterioration. Compounded by near triple-digit inflation, it is this last point that worries workers most outside the deal.
Just go back to 2017 to rediscover a year in which wage increases exceeded inflation (from 26.7% to 25.7% at the time).
So what is causing the most distress today is not the new wage loss in 2022 (94.8% inflation versus 89.4% average adjustment), but rather the fifth consecutive year. That exhausting feeling of continuing to be tossed by the wave, not even being able to stand up.
Worse, impending 2023 stagflation is already limiting corporate resources to fight back another year of steep price acceleration. The most feared prognosis? what if, today 2023 appears as the sixth consecutive year of loss real salary…
Strategies
Since necessity has the face of a heretic, however the market reacts. So the freelancers, mono-tax payers and independents who export their services of knowledge abroad, they invoice in dollars and convert them into the blue value, and in any case possible.
It is clear that the government does not understand how, does not know or cannot regulate this working dynamic. His impromptu and belated attempts hardly convince this group whose faith in the state is nil. Working marginally, evading contributions and contributions to the pension system, implies break the social contractand it must be corrected.
A profound, plural and consensual labor reform is urgently needed to solve it at its root. Meanwhile, some companies apply their ingenuity to partially reward certain levels of executives in foreign exchange, both in their monthly salary and in their annual variable bonuses.
How can the executive work around this problem temporary salary in 2023?
– Understand that today the “when” can be worth more than the “how much”. 64% of companies expect to comply 4 or more times this year. With monthly inflation around 5%, the passage of time annihilates the salary. Perhaps, for this reason, it is worth fighting for when rather than for how much.
– Valuing quantifiable benefits. Having a category prepaid card for the whole family group represents not only peace of mind, but also a considerable investment of money.
Having an assigned company car or recognition of all one’s expenses also contributes to the cause of maintaining the family economy. Lunches, childcare or internet are other spending options that, recognized by companies, can ultimately be very relevant to the worker.
– Analyzing with great detail and mathematical rigor the economic proposals in the changes of work. In such a volatile and unstable wage environment, a fine and detailed calculation is needed to compare the current situation with any future one. Gross or net values, criteria and timing of salary reviews, gray remuneration, payments in foreign currency.
All that and all to confuse the analysis. Avoiding the quick and unnecessary comparison will certainly increase the chances of preventing that enticing salary improvement from fading away in a shorter term than imagined.
Source: Clarin
