The minimum wage lost again in the eighth month of the year and accumulates a real contraction of 32% since November 2023. Its current value is even lower than that registered before the collapse of convertibility 24 years ago.
The purchasing power of minimum wage He went back in August. According to a recent report, the SMVM 0.5% fell in real terms during August, accumulating a 32% contraction since November 2023.
The analysis prepared by the area of employment, distribution and labor institutions (mayor), of the Interdisciplinary Institute of Political Economics (IIEP) of the Faculty of Economic Sciences of the UBAcoordinated by Roxana Maurizio and Luis Beccariawarns that the real value of the minimum wage It has been at its lowest level since 2001before the collapse of convertibility, and that lost 62% of its purchasing power with respect to the historical maximum of the seriesregistered in September 2011.
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The report details that the fall in purchasing power began in December 2023when the real minimum wage 15% were reduced due to inflation after devaluation. In January 2024 The decline was even stronger, reaching the 17%.
While some later months showed slight nominal improvements, these increases failed to compensate for the general loss. Between November 2023 and August 2025, the minimum wage accumulated a 32% dropand so far this year, the setback reaches the 3.7%.
Formal Employment Fall
The document also accounts for the impact on the labor market. In June 2025last data available, they were lost 12,200 jobs in the formal salaried employment of the private sectorwhile the Public Sector added 7,800 new jobs.
When considering the set of formal employment – public, private and private houses – the Net loss was 4,100 positions in June. In total, 10,111 million people They were registered as wage salaries in Social Security, according to the de -stationalized data of the Argentine Integrated System (SIPA).
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The report indicates that, after a continuous fall between September 2023 and July 2024formal employment showed some stability until March 2025, but He went back in the next three months. In interannual terms, June 2025 reflected a loss of 18,000 formal jobs (-0.2%) in front of June 2024, and almost 190,000 (-1.8%) compared to November 2023. Real entrepreneur and decline
The study of the Faculty of Economic Sciences warns that the combination between Fall of real salary and destruction of formal employment Deepen the fragility of the Argentine labor market. The loss of the purchasing power of the minimum wage, the authors point out, reflects the absence of update mechanisms that accompany inflationwhile the reduction of private formal employment restricts the capacity to recover consumption and domestic demand.
Source: Ambito
