The government will raise the income ceiling to $404,000 from March for receiving child benefits and will update it as the minimum level at which income tax begins to be paid is changed. that way, 900,000 children will be incorporated into the system and 600,000 workers will benefit.
The Minister of Economy, Sergio Massa, and the executive director of ANSES, Fernanda Raverta, announced the measure this Thursday in a message recorded with the aim of improving the income of a sector of wage earners, after learning on Tuesday the inflation in January, which showed a year-over-year increase of 98.8%.
“We have decided to tear down that ceiling that has stopped serving 900,000 children in Argentina and has left more than 400,000 workers without family benefits, who have lost the possibility of receiving family salary due to the ceiling established in Earnings,” he said the head of the Treasury.
Massa explained that due to the ceiling for receiving formal salary there was an “absurd” situation whereby workers in the same work establishment, due to differences in activity or seniority, could or could not access the benefit.
Now, from March, the maximum income ceiling for receiving family allowances will be equalized with the Irpef threshold, then it will go from $158,000 to $404,000. And, as officials explained, the update will be “permanent” in nature.
In this way, every time the plan for which Irpef is paid is changed, the ceiling up to which the family salary is received is also updated.
With this measure, coverage is extended to more than 4.4 million girls, boys and adolescents and 2.9 million registered workers, according to reports from Economía and ANSES.
During the announcement, Raverta stressed that “starting in March, 900,000 girls and boys will have their family allowance, like the daughters and sons of the rest of the workers in Argentina.”
The measure will have an approximate fiscal cost of $4,000 million a month, so this year it will require a $40,000 million effort.
Today there is an individual income ceiling for the collection of family allowances. Exceeded this value, the coverage is deducted from Irpef. Those receiving between $158,000 and $404,000 did not receive a salary or deduct their children from earnings.
In the following days, the Government had to raise the salary ceiling which is adjusted once a year – in March – on the basis of the annual evolution of the RIPTE (Taxable Remuneration of Stable Workers) in October of the previous year.
The forecast was that this value would rise to $283,220 (78.84%), below the evolution of wages and inflation. With a price change close to 100%, the annual adjustments left hundreds of thousands of workers with children out of family wages.
But now the Government has decided to raise the ceiling of 155% with a measure that was requested by a trade union sector due to the deterioration of incomes. A typical household needed $163,539 to avoid being poor in January, an increase of more than 100%, according to INDEC.
“Argentina is facing a great challenge. On the one hand, to recover income and, on the other, to guarantee macroeconomic stability,” said Massa, who repeatedly underlined the “distribution of income” in his message.
Starting in March, income bracket I up to $177,554 will receive $11,465; rank II with income between $177,554.01 and $260,403, a sum of $7,732; grade III with income between $260,403.01 and $300,645, an allowance of $4,675; and Grade IV with income between $300,645.01 and $808,124, a benefit of $2,410.
The minister and the head of ANSE had already announced last Friday the first increase in mobility of the year for pensions, pensions and benefits and a strengthening of 15,000 dollars for retirees who collect the threshold, so the minimum pension has become 73,665 dollars .
Source: Clarin
