In the next few hours The Government will modify the calculation of the value of the Potenciar Trabajo Plan. Until now, every time the Minimum, Living and Living Wage (SMVM) increased, social assistance also increased. But now we analyze it by “unhooking” it and fixing it value according to another criterion which could be known in the next days.
Until now, the million beneficiaries of Empower Work perceived 50% of the SMVM, according to Resolution no. 121/2020 of the Ministry of Development. That resolution has not been changed and is “still in force”, as confirmed to Clarion to the Secretary of Labor.
However, other sources said so The Government will modify resolution 121/2020. And from what several officials have said, the goal is to unlock the value of the SMVM’s enhancement work.
For example, Luis Caputo himself stated this after taking office as Minister of Economy The labor empowerment budget would be frozen at the 2023 levelHowever, despite the time that has passed, the Government has not adopted any measures and Resolution 121/2020 remains in force.
This Resolution was partially modified because, with decree 125/2024, the Government decided to “transfer from 1 April 2024 all the holders of the Empower Work created with the Resolution of the former Ministry of Social Development No. 121 of March 18, 2020 and its amendments, to the Work Inclusion Program, in the field of Secretary of Labor, Employment and Social Security, of the Ministry of Human Capital”.
In January, beneficiaries of the Potenciar Trabajo Plan raised $78,000 the same as December as there was no increase in SMVM. But now in February and March the values should change because the value of SMVM will rise to $180,000 since February 1 and $202,800 since March.
Being tied to the SMVM, the value of Potenciar Trabajo has suffered the same loss of purchasing power as the minimum wage.
In 2023 the minimum wage had an increase of 151.8% compared to inflation of 211.4%. A loss of 19%.
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%.
Since 2011, the SMVM has been in decline, having it lost 45% through December 2023. Now the loss of the first 3 months of 2024 is added.
Source: Clarin
