Although Javier Milei stated a few days ago that the Government will not set the minimum, living and mobile wage, and after the Minister of Economy, Luis Caputo, subsequently announced an increase, the Government made official this Wednesday an increase which will bring the figure to $180,000 in February and $202,800 in March.
In relation to estimated inflation, the worsening in just 3 months would be more than 20%. The fact is that, compared to December, the increase compared to March would be 30%, well below inflation, worsening the deterioration of recent years.
The provision was confirmed in the latest edition of Official bulletin through resolution 4/2024 of the Ministry of Labor, Employment and Social Security, which bears the signature of its owner, Omar Yasin.
The legislation, pursuant to article 1, concerns “all workers included in the employment contract regime approved by law no. 20,744 (until 1976) and its amendments, in the agricultural labor regime, of the national public administration and of all bodies and organizations of the national state acting as employer”.
In the first section, “a”, the living and mobile minimum wage is established”starting February 1, 2024, at $180,000 for all monthly workers who complete the entire legal working day, pursuant to article 116 of the Employment Contract Regime approved by law no. 20,744 (until 1976) and its amendments, with the exception of the situations provided for in articles 92 ter and 198, of the same legal person, who will receive it in the due proportion; and of $900 per hour for day laborers”.
In turn, in “b”, indicates that the figure “effective March 1, 2023 (sic),” will be $202,800 for monthly workers e $1,014 for day laborers.
In 2023 the minimum wage had an increase of 151.8% compared to inflation of 211.4%. A loss of 19%. In December it was $156,000 for those paid monthly, or $780 an hour.
With an inflation of 20.6% in January, estimated at 18% in February and the same in March, in those 3 months the accumulated inflation would be around 68%. Therefore, the SMVM increase would account for less than half of the quarter’s inflation. A drop of 22%.
The minimum wage is crucial to, among other things, determining the amount of the Empower Work plan benefit, the value of minimum pensions and the minimum wage level above which workers are covered by income tax.
Last week officials from the Ministry of Labor, union representatives and employers met for the first time since the start of the Milei administration as part of the Wage Council, but they did not reach an agreement.
Source: Clarin
