For the third consecutive month, for the retroactive increases for the 2022 parities, the start of the first installments of the 2023 conventions and the increases for those “outside the convention”, formal wages, along with Social Security contributions, rose more than inflation in April.
That month the salary increase was 9.8% against an average monthly inflation of 8.4%. In March, the wage increase was also 9.8% and inflation 7.7%. In February, formal wages rose 8.4% and inflation was 6.6%. In contrast, in January, the wage increase was just 3.8% and inflation was 6%.
This real improvement determined that in the first 4 months of the year, formal public and private salaries, they will accumulate an increase of 35.7% against an average inflation of 32%. It represents a real wage improvement of 1%.
However, over the past 12 months, the price increase was 108.8% and formal wages increased by 105.2%. A loss of 1.75%.
The salary figure is official and corresponds to the RIPTE (Taxable Salary for Stable Workers), whose monthly series begins in July 1994.
In April, gross wages (without deductions) taxable with contributions on average $263,481.22 according to official data on the basis of the amounts declared by companies to the Social Security. A year ago, it was $128,406.32.
Since it is the gross salary, to determine out-of-pocket income, at $263,481.22 the worker’s retirement and health care contribution (17%) would need to be discounted and finally add the family wage per child.
The RIPTE is calculated on the basis of average salary of public and private sector workers with contributions to the Argentine Integrated Pension System (SIPA) which have been declared continuously for the past 13 months.
For this and other reasons, the Ministry of Labor believes that “RIPTE it does not necessarily reflect wage developments 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 national 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 and in the absence of an official index covering all wages recorded, the RIPTE is an indicator that allows you to analyze theThe evolution of the bulk or majority of formal wages.
In the last 5 years formal wages (RIPTE) have had a loss of the order of 20% compared to inflation.
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, account for half of all formal and informal jobs in the country (single tax payers, self-employed, wage earners without pension discounts, and informal self-employed).
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 “minimum” wage, initially at $150,000 and now at $506,230 to be exempt from paying this tax.
It also updates the Family Income ceiling for the collection of Family Allowances and the parameters of socio-financial vulnerability to access the pension moratorium by deducting the pension debt up to 120 instalments. And every month the amount paid by employers to the Cassa Silattia for the insurance of the ART system increases.
Source: Clarin
