The value of the minimum wage it fell 17.2% in the first quarter. And with these premises, the Government should call in the next few days again at the Council for the minimum, living and mobile wage (SMVM) to define the increase for April and following months.
The last meeting took place in February and, due to the lack of agreement between business and union representatives, the Secretary of Labor had to speak. And set, “skipping” the month of January, at $180,000 monthly value or $900 per hour for February and $202,800 for March or $1,014 per hour. a figure equivalent to half a kilo of French flute bread or one liter of fresh milk in a sachet, according to the INDEC values for February. Compared to December ($156,000 for those paid monthly or $780 an hour), March’s $202,800, They are equivalent to a 30% increase.
January-February inflation was 36.6% plus an estimated 15% from March It would show 57% versus 30% in the first quarter. It represents a worsening of 17.2%.
This loss is in addition to that of 2023 when the minimum wage increased by 151.8% against inflation of 211.4%. That’s a 19% loss.
In relation to the basic food basket, the decline exceeded 25%.
The SMVM for December was $156,000 in monthly payments or $780 per hour. In December 2022 it was $61,953 monthly or $309.77 per hour.
The SMVM Commission brings together members of the CGT and CTA trade unions and business representatives such as the UIA. It constitutes a sort of national parity that can set the percentages of wage increases that unions and employers would be willing to accept for all activities.
According to CIFRA (Research and Training Center of the Argentine Republic), “the purchasing power of the minimum, living and mobile wage shows a negative trend since 2011which was particularly strong in the last two years of Mauricio Macri’s government and in 2020. This decline was even greater than the real loss of registered salaries.
Then, “between 2021 and 2022, in a context of rising inflation, seven updates to the minimum wage occurred, which did not achieve a recovery of its purchasing power. The year 2022 ended with an average decline in the real minimum wage of 1.3%, which placed it 33% below the 2015 level.” With the loss in 2023 the drop is 45%.
The law on employment contracts attributes three characteristics to the minimum, living and mobile wage. It is the lowest salary that the worker without family responsibilities must receive in cash for his working day. It must ensure adequate food, decent housing, education, clothing, healthcare, transportation, recreation, holidays and pension coverage. And it must be adjusted periodically based on changes in the cost of living.
It is more than evident that those who receive the SMVM, plus the possible collection of the family salary per child, find themselves unable to cover all the requirements established by the Employment Contracts Law when the poverty basket for a typical family in February it was $690,901. 0.57, without calculating the rent. It should be around $800,000 in March, without rent. The SMVM is therefore not minimal, it is not vital nor mobile with respect to the level and increase in prices.
The minimum wage affects registered monthly or daily workers who earn less than the monthly or hourly minimum wage. And indirectly as a reference to unregistered or informal workers.
Also affects the income tax exemption for workers earning less than 15 SMVM,
It also affects the share of failure to seize wages equivalent to the amount of the minimum wage, excluding maintenance debts. From this value, an increasing percentage is applied to the difference between the salary received and the SMVM.
Source: Clarin
