After unsuccessful negotiations with the opposition, the government of Javier Milei has decided to change the retirement formula for DNU. The increases will be due to the inflation index and would begin to be implemented from April on salaries.
In this way the minimum asset, equal to 134,445 dollars, would rise to approximately 175,000 dollars in April. In this formula, the $70,000 bonus would have no increase in April. If the latter were confirmed, pensioners and pensioners with minimum income would have a lower percentage increase than those with average income and higher pensions.
Below are the 10 keys to the project the Government is working on:
1, The government would amend through a DNU the pension mobility formula of the General Scheme which covers 7 million pensioners and pensioners. It would not include special regimes, such as those of national teachers, university professors, Luz y Fuerza, diplomats, judiciary, among others, who would continue with their quarterly increases.
2. According to reports, the mobility index that will be used starting from April will take into account the February CPI and will include compensation between 12 and 14% due to inflation accumulated in the first months of the year. Then, starting in May, it would be adjusted monthly by the CPI with a 2-month interval. And there would be no recovery for the loss of recent years. Nor does the recovery improve real wages or the economy. For example, March CPI would be calculated in May. In previous versions the official adjustment for compensation was 10%. The opposition majority proposes that this compensation be equal to 20.6%, the same percentage as January inflation. And that difference got in the way of getting a bill through Congress.
3. The change in mobility through a DNU will certainly open a political and judicial debate, especially since Congress is working and the treatment of this important issue for 7 million pensioners and pensioners and another 10 million children whose parents earn the AUH or the family stipend was expanded after the withdrawal of the megaproject from Congress. On the other hand, what happened during the government of Mauricio Macri and Alberto Fernández would be repeated: that the combination of formulas will begin with a further real loss of assets.
4. April’s increase would be equivalent to February’s inflation (13.2%) more of an advantage between 12% and 14% cumulative would bring the increase to 26.8/29% and would be applied to current March salaries.
5. This increase would not include the bonuses that with decree no. 268/2024 had already been published in the Official Journal with which the Government decided to maintain the value of the April bonus up to 70,000 dollars, as received by pensioners with minimum wages in this month of March.
6. Currently the minimum equity is $134,445. It would have happened around April $175,000, plus $70,000 bonus, I would add $245,000 and it would represent an increase of 20%. If the bonus were included, the total would amount to approximately $263,000.
7. If it is confirmed that the increase does not apply to bonuses, pensioners and pensioners there would be a minimum and they would have a lower percentage increase to those with average assets and higher pensions.
8. Compared to December, the cumulative increase in wages In April it would be between 52% and 64% against inflation of around 72%., (36.6% January-February + 15% March + 10% April). Due to the loss that pensioners had compared to the inflation of December, January and February (+71.3%) which the March increase (27.18%) did not cover, according to Nadin Argañaraz the increase in salaries it should rise to 25% in April and add February inflation (13.2%), i.e. an increase of 41.5%, including the bonus. And in May provide March inflation.
9. If these data are confirmed, the change in the mobility formula, as happened with Mauricio Macri and Alberto Fernández, would start with a decrease in pension amountshigher than the losses suffered by pensioners and pensioners under the two previous governments, with the aggravating circumstance that the lowest paid would suffer a greater loss.
10. Mobility due to inflation from April onwards does not recover what was lost in recent years, which on average was 50%, but consolidate that loss for life.
SN
Source: Clarin
