Despite the increase ordered by the Government, the minimum wage and pensions will lose against inflation
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Unions, business chambers and the Government agreed to take the minimum wage to $61,953 in December, which implies that in all of 2022 it will increase 93.6% Y will lose again against inflationwhich will be around 95%, according to the official projections set in the Budget for this year.

Something similar will happen with the minimum retirement, that will increase 72.6% in the year and will lose more than 22 points against the rise in the cost of living. In January, the initial credit was $29,062 and will reach $50,155 in December. To offset the loss of purchasing power, the Government ordered a $10,000 bonus, but that will be charged only for three months.

Also read: The minimum wage will increase by 20% until March and will reach $61,953 in December

With those figures, both the minimum wage and the initial pension will not be enough to cover basic needs.

The Basket Basic Food (CBA) so that a family of four -composed of two adults and two children- do not fall under the threshold of the indigencereached the $62,106 in OctoberIn other words, not even the increase forecast for December would be enough to cover it.

In the case of the basket of retireesa report prepared by the former director of Banco NaciónClaudio Lozano, revealed that December’s minimum retirement credit will only cover 29.3% of those products and adding the bond would hardly be enough for him 35.1%.

poor workers

In Argentina, more than 6 million formal workers receive the minimum wage, but that amount also serves as a parameter for informal workers, who represent about of 40% of the workforce.

Thus, with an income of $61,953 per month, thousands of families that only receive a minimum wage will continue below the line of indigence in December.

not to be poornot even receiving that minimum income, the two adults would be able to cover the $139,738 which required the Total Basic Basket (CBT) in October, which includes food and other basic goods and services, such as housing.

Also read: Increase the minimum wage: how much it rises and how it will impact social plans, retirements and teacher salaries

In the negotiation this Tuesday in the sphere of the Salary Council, the Autonomous CTA was the only guild that did not accompany the agreement with his vote. The union of workers led by Hugo “Cachorro” Godoy wanted to bring the minimum wage to $70,000 in December, on the one hand, to beat inflation and, on the other, to guarantee that the basic food basket can be covered.

Retirements, at a loss

The situation of the passive sector is even more serious. Taking into account the last increase announced for December, of 15.6%, 2022 will end with an improvement in the have a minimum of 72.5%that is to say, 22 points below the inflation projected by the Government itself in the Budget.

According to the report The deterioration of retirements. The deterioration of the minimum credit from the last increase due to mobilityprepared by the Institute of Thought and Public Policies of Popular Unity, of Lozano, the real deterioration accumulated by the minimum credit will reach 13.5%. For february the situation will worsen, reaching the 16.2%.

The minimum retirement income for December will only cover 29.3% of the basket of retirees, according to a study by Claudio Lozano (Photo: Télam)
The minimum retirement income for December will only cover 29.3% of the basket of retirees, according to a study by Claudio Lozano (Photo: Télam)

“Observing what has happened since the new mobility formula came into effect, of the eight increases granted, five were below the evolution of prices”, indicated the study.

Also read: The fees of private schools in CABA and the province of Buenos Aires will rise to 14.5% in December

In the same vein, he warned that “in a context of slowdown in economic activity, fall in real wages and accelerating inflationthe formula fails to avoid cutting the purchasing power of assets”.

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