After the sharp decline in December, In January the purchasing power of formal salaries with social security contributions was again lost to inflation. On average, formal salaries increased by 14.7% against inflation of 20.6%. This represents a decline of 4.9%.
So in just two months, the wage drop increases by 17.9% as salaries had a nominal increase of 24.2% and inflation in the December-January period was just over double: 51.2%, according to INDEC and RIPTE (Taxable Compensation of Stable Workers) data prepared by the Secretary of Social Security, which includes 10 million formal workers in the public and private sectors.
January’s wage drop compounded the decline that formal wages had suffered over the past year. Therefore, 2023 ended with an average salary that went from 194,175.11 dollars in December 2022 to 484,298.40 dollars in the same month of 2023. This is an increase of 149.4% against an inflation of 211, 4%. This equates to a 20% loss in purchasing power.
In January, the average salary was $555,269.16, lower than the family poverty basket value for a couple with 2 minor children, estimated by INDEC at $596,823, without considering rent. This explains the increase in workers with formal employment and social security contributions living in poor households.
In 2022, formal salaries increased by 89.3% against inflation of 98.4%.
Compared to the end of 2015, the RIPTE accumulates a loss of more than 30%, of which 20 points correspond to the government of Mauricio Macri and 10 points to that of Alberto Fernández, to which is now added this autumn of December and January. .
RIPTE considers the wages of national, provincial and municipal private sector and public sector workers who have transferred their pension funds to SIPA-ANSeS, as clarified by the Secretary.
The RIPTE (or INDEC Salary Index) is one of the variables that is taken into consideration for the calculation of pension mobility together with the evolution of the tax collection that goes to Social Security, discounting the increase in the ranking of beneficiaries.
The Secretary of Social Security clarifies that for the calculation of the RIPTE the following are considered:
- The salaries assessed are those corresponding to tasks with seniority equal to or greater than 13 months. That is, salaries for new jobs are excluded.
- Considers the salaries of employees in the private sector and in the national, provincial and municipal public sector who have transferred their pension funds to SIPA./ANSeS
- It only quantifies the remunerative components of the salary (taxable to the social security system).
- It takes into account the amount of salary up to the taxable limit defined for personal contributions to the social security system.
Source: Clarin
