Why bonuses are awarded and how they affect retirees’ income

Again the mobility formula was lower than inflation and the government had to compensate for that loss with a bonus or increase in income, in this case valid for three months for those earning up to two minimum wages.

The fact is that the current mobility formula, which combine salaries with inflation guarantee-free collection, comes into effect with a three-month delay (the September-November increase is based on the April-June variables). and in a growing inflationary contextretirees, retirees and benefit recipients face higher inflation with lagged assets versus prices that are adjusted and renewed day by day.

In the case of the formula in force in the last 2 years of Mauricio Macri’s government, which took into account 70% inflation and 30% formal salaries, it was applied with a delay of six months, which increased the loss of the pension.

Therefore, in addition to its retroactive application “skipping” a quarter, between September 2017 and December 2019, the mobility of pensions and pensions and other social benefits it worsened by 19.5% compared to the average price increase.

Alberto Fernández’s initial response to this deterioration was not the promised healing, but worsened the decline in wages for a sector of retirees. In March 2020 there were differentiated increases by decree and that year the assets increased between 35.3% and 24.3% against an inflation of 36.1%, flattening the pension pyramid.

Those with the lowest salaries received bonuses to compensate for inter-quarter losses, while the retirees with average and higher salaries did not receive any bonuses, absorbing the entire loss up to 8.7%.

In 2021, with inflation of 50.9%, end-to-end increases were 52.7%, with bonuses also for those earning lower wages for inter-quarter losses.

This year, due to the surge in inflation, the bonds that have become more frequent have been repeated. always for the lowest pensions. There were bonuses in 2 months (April and May) and now in 3 (September, October and November).

Without the quarterly bonus, assets increase between September and November by 49.2%, With bonds, minimum pocket income increases by 73.3% between the first 9 and 11 months of the year, leaving the question of what could happen with the mobility in December, which will not take into account the bonuses and why the year could end with an inflation of 90/100% or more.

On the other hand, as of November, both family allowances and maximum credit increased by 49.2%, perhaps around 25 or 30 points below the inflation forecast for that month.

The characteristic of these securities is that they are not integrated into the credit, so future increases are calculated on a lower basis and the loss of pension becomes permanent. For example, the 15.53% of September is calculated on the assets of August, the month in which no bonus is collected.

In Justice there are judicial rulings in favor of pensioners for the loss of pension caused by the change of mobility during the Mauricio Macri government as well as by the decrees of Alberto Fernandez in 2020. The final decision of the Court of Cassation is still awaited.