Formal wages are lagging behind and in May lose to inflation

In May, on average, formal or registered salaries, with contributions to Social Security, increased by 4% versus an inflation of 5.1%. A loss in the month of 1.1 points.

In the first 5 months of this year, formal salaries accumulate a slight advantage with an increase of 30.2% against an inflation of 29.1%. As for the item Food and Beverage, which is the one that most affects the basket of employees and which accumulates an increase of 33.7%, there is a negative difference of 3.5 points.

The salary figures are official and correspond to the RIPTE (Taxable Remuneration of Stable Workers), whose monthly series begins in July 1994.

The RIPTE is calculated on the basis of the average salary subject to contributions to the Argentine Integrated Social Security System (SIPA) received by employees in an employee relationship and declared continuously during the last 13 months.

From May, gross salaries (without discounts) with contributions have an average of $ 133,595.77, according to official data based on the amounts declared by the companies to the Social Security.

A year ago, it was $ 81,464.51. Represents a 64% increase over the 60.7% increase in the price index to the consumer.

If, on the other hand, we compare the Food and Beverage category, which recorded 64.2% in one year, there is a slight loss.

Since it is the gross salary, to determine living income, at $ 133,595.77, the worker’s pension and health contribution (17%) should be deducted and eventually the family salary per child should be added.

In recent years (2018/2019) the RIPTE has fallen by 18% against inflation and in 2020/2021 with ups and downs it accompanied inflation, but there was no recovery compared to the end of 2019.

In total, employees in a dependent relationship with contributions to ANSES number of about 7.5 million, about 75% of the nearly 10 million employees in a registered dependency relationship. The rest contributes to the provincial savings banks or other schemes.

These 10 million, in turn, account for half of all formal and informal jobs in the country (Monotributors, self-employed, wage-earners without pension reduction and informal self-employed workers).

As a wage index, the RIPTE is used every three months (March, June, September, December) to set half the percentage of pension mobility, pensions and other social benefits and in the calculation of compensation for accidents at work.

It is also used to update the minimum non-taxable income tax once a year and to update the “floor” salary, initially by $ 150,000 and now $ 280,792 be exempt from paying this tax.

It is also used to update the file once a year Family income cap to collect family allowances. And every month the amount paid by employers to the sickness fund for COVID insurance.

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