Pensions and pensions will increase by 12.5% in April “plus a preview of the mobility corresponding to the month of June 2024” which would be equal to 13.2%, as clarified by the Ministry of Economy, which gives a total of 27.35% in consideration of the increase that will be granted in June. And the full inflation adjustment for the previous two months will only be applied in July.
This is how it was born DNU no. 2024. Meanwhile, through a new decree, the $70,000 bonus provided for by the April increase will remain unchanged but, through a new decree, The current limit will be increased from $204,445 to $241,216 (an 18% increase)as Economía reports, confirming what Clarín reported in last Sunday’s edition.
Compared to December, the cumulative increase in income of minimum assets including the bonus until April it would be 50% ($241,215 vs. $160,713) and 62% for the restagainst inflation of around 71% (36.6% January-February plus 14% estimated in March plus 10% in April).
Compared to April 2023, without bonuses, pensions increase by 191.8% in the face of inflation that could be around 290/300%. The minimum bond amount would rise to 227%, also lower than the inflation rate 12 months ago.
The DNU establishes that the much criticized mobility formula will remain until June. Article 4, according to which “for the purposes of transition, to determine the mobility corresponding to the month of June 2024, the formula in force on the date of issue of this document will be applicable.” And until then there will be increases on advances that would be granted in April (12.5%+13.2%) and determined in May (according to March CPI) and June (according to April CPI).
Only in July will the new formula be applied according to May inflation and then in the following months according to the evolution of inflation compared to 2 months ago.
“In July 2024, the change in the consumer price index corresponding to May 2024 will be paid. In August, the change corresponding to June will be paid, and so on,” the DNU provides as an example.
According to specialist Guillermo Jauregui, Two mobility formulas coexist until June. Only starting from July will there be a new formula, with the clarification that until then two mobilities will be in force simultaneously, even if one is in account”
In June it is not known whether there will be mobility or not. Because in April pensioners will collect 13.2% plus 12.5%, which gives 27.35%. But it’s the mobility of June that’s to blame. In May they will collect March inflation. And in June it would correspond to April’s inflation but in that month the amount collected in April and May is discounted. As a result, June will be adjusted for April inflation, but you will be charged an increase if what you received in April and May is less than April’s CPI. And if April inflation is lower than Alberto Fernández’s formula, the increase resulting from the formula will be charged.
In summary, we will have to compare Alberto Fernández’s formula with the April CPI plus 12.5%. And from that calculation the highest amount will be paid.
“Beyond the difficult mechanics, finally in June the higher value between what was granted in April and the result of Alberto Fernández’s formula will be applied. This means that at the crossroads in June the pensioner will not lose because the higher value will be granted compared to that granted since April and to Alberto Fernández’s mobility formula. It is enough to note that mobility due to inflation, useful today, should be corrected when the increase in wages is higher than the cost of living since, in times of stability, it is with wages that pensions must be in harmony,” he told Clarín to the specialist Elsa Rodríguez Romero.
Currently, the there is a minimum is $134,445. Plus April’s 12.5%+13.2% you will get to $171,215 plus the $70,000 bonus, will add $241,215, an 18% increase.
He have the best in April ranges from $904,689 to $1,152,122 : +27.35%
Of the 7.4 million pensioners and retirees, More than 5 million earn the minimum wage.
Article 5 of the DNU establishes that the increases in April and May will be due to the mobility to be paid in June 2024 according to the index that will be obtained according to the current mobility formula. And in the event that these advance increases exceed those of the mobility formula “the difference will not be deducted, which will be considered incorporated into the credit. If they are less than this increase, the resulting difference will be paid.
Source: Clarin
