The Government decided it will pay the two outstanding bonds for $55,000 pesos each which they will only receive pensioners receiving the minimum wage. Announced by former Economy Minister Sergio Massa in October, so far only one has been paid in November (with Massa in Government), but until today it was not known what decision Javier Milei’s government would take.
This Friday the decree for the payment of the 55,000 dollars corresponding to the month of December was signed, but it also emerged thatCasa Rosada also condemned to pay the third bonus in January. The news comes amidst uncertainty about what will happen from now on with retirements, given that the Government has sent the bill to Congress in which it is found the application of the adjustment formula is suspendedand social security benefits, pensions and social plans.
Until the law is passed, if ever, The current formula will continue to govern. The latest adjustment that emerged from this formula gave a Increase of 20.87% since December and the next increase will be defined in March. This increase will depend on what happens in Congress with the Omnibus Act.
Economía is working on this option until the new formula is designed and approved: lThe idea would be to keep minimum pensions updated to inflation.
In the team led by the minister Luis Caputo ensure that discretionary increases They constitute a better and more convenient solution for beneficiaries who receive the minimum, compared to continuing to apply the current formula, because with inflation already appearing in December – it could exceed 25% – and which will continue in the coming months the liquefaction of pensions would be more harmful by applying the formula rather than granting discretionary raises.
It is not yet known what will happen to the retirement assets exceed the minimum. They will not receive the bonuses for $55,000 and “discretionary” compensation is not foreseen, although it is not excluded.
When Massa made the announcements on the complementary bonus for those earning the minimum wage, he indicated that if he were elected President the second corresponding bonus in January would be $65,000 and would rise to $70,000 in February. For now it is known that the payment of 55,000 dollars will be made in January but the amount of the February payment has not been defined.
As reported Clarion This Thursday, the mega bill that the Government sent to Congress suspends pension mobility, authorizes the Executive to establish a formula for adjusting pensions and pensions and to grant discretionary “periodic increases, giving priority to beneficiaries with the lowest income ”.
This can be read in the bill which, among other things, declares the Pension emergency, establish a delegation of powers from Congress to the Executive regarding pension matters, among other issues.
In DNU 70/2023 the social security emergency had already been declared until 31 December 2025. The mega bill establishes that this period can be extended by the national executive for another 2 years. And it leaves open the possibility that the Government will introduce other changes or broader reforms on the basis of the delegation of powers that Congress is making in favor of the Executive, and even «will apply to all those provisions that will be issued subsequently and which expressly refer to the declared public emergency”.
Pensioners and pensioners of the national pension system In total they amount to almost 6 million. 40% of SIPA beneficiaries are paid at or below the minimum wage. Another 23% are between one and two minimum assets and the remaining 37% have concentrated assets equal to or greater than two minimum assets. The minimum asset in December is $105,713 gross (without bonuses). The universal pension for the elderly (PUAM) $84,570. And the average asset of $174,731.
The mobility formulas of Mauricio Macri and Alberto Fernández showed increases much lower than inflation. Therefore, the loss of purchasing power of pensioners from September 2017 to December 2023 is 40%, with a smaller loss for those on minimum wage due to bonuses received during the AF government (the last of the $55,000 received in December ).
Source: Clarin
