In February formal salaries, with contributions to the Social Security, rose 8.4% versus 6.6% inflation. That improvement made up for it partly the wage worsening in January and in the first 2 months of the yearformal salaries increased by 12.5% against two-month inflation by 13.1%. A 0.5% retracement
Meanwhile, as of February, over the past 12 months, price increases have been 102.5% and formal wages have increased by 94.4%. A loss of 4%.
The salary figure is official and corresponds to the RIPTE (Taxable Salary for Stable Workers), whose monthly series begins in July 1994.
The RIPTE is calculated on the basis of the average salary subject to contributions to the Argentine Integrated Pension System (SIPA) received by workers in a declared employment relationship continuously for the past 13 months.
For this and other reasons, the Ministry of Labor believes it “RIPTE does not necessarily reflect the evolution of wages for registered work” because it does not include, for example, unpaid increments, it excludes the remuneration of new jobs, it considers the wages of private sector and national, provincial and municipal public sector jobs that have transferred their pension funds to the state system and takes into account the amount of salary up to the taxable limit defined for personal contributions to the social security system.
However, with these clarifications, the RIPTE is an indicator that makes it possible to analyze the evolution of most or most of the formal wages.
In February, gross wages (without discounts) taxable income with contributions averaged $218,543.91 according to official data. One year agothey came $112,413.82.
Since it is the gross salary, to determine out-of-pocket income, at $218,543.91 the worker’s retirement and health care contribution (17%) would need to be discounted and finally add the family wage per child.
In the past 5 years, formal wages (RIPTE) had a 22% loss to inflation.
Overall, there are around 7.7 million employees with contributions to ANSeS, around 77% of the almost 10 million employees registered with employees. The remainder contributes to provincial savings banks or other schemes.
These 10 million, at the same time, they account for 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 wage index, the RIPTE is used each month to calculate (90% of the RIPTE) the increase in the prepaid rate of those earning less than 6 Minimum Wage (SMVM). And every three months (March, June, September, December) to fix half the percentage of mobility of pensions, pensions and other social benefits, and in the calculation of compensation for occupational injuries.
It is also used to update the minimum non-taxable income tax once a year and to update the wage “minimum floor”, initially $150,000 and now $404,062 to be exempt from paying this tax, the household income ceiling to collect family allowances and every month the share paid by employers to the Sickness Fund for COVID insurance increases.
NS
Source: Clarin
