The companies plan to grant an increase of 95.47% in 2023 to staff outside the agreement. But inflation is projected above 100%.
If private screenings become a reality, wages this year will once again largely lag behind inflationboth for those who are inside and outside the agreement, and certainly also in the case of informal workers.
According to the latest survey of Trends in Salary Increases in Argentina (TISA) carried out by the consulting firm Mercer, The companies plan to grant an increase of 95.47% in 2023 to staff outside the agreement.
If the projected annual inflation of 107.3% according to the Latin Focus Consensus is taken as a reference, the salary increase for non-collaborative personnel would once again be a few points below inflation, as has been the case in recent years.
“In relation to the annual projection of salary increases in the general market, an increase of approximately 5 points is observed since the previous measurement. This is related to the rise in annual inflation expectations, which reaches 107.3% according to private sources (Latin Focus-April Edition)”, explained Ivana Thornton, director of Mercer Career for Argentina, Uruguay and Paraguay.
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The 10 industries that expect to grant the largest increases above the general market (95.47%) are:
- banks (107.5%)
- engineering and construction (105%)
- media and entertainment (103.55%)
- energy-oil & gas (100.38%)
- packaging (100.35%)
- agriculture (100.15%)
- life sciences – medical devices and equipment (100.04%)
- High Tech-telecommunications services (100%)
- Health services-medical care services (100%)
- Fintech (99.23%)
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“Regarding the increases by industry, there is again a greater distance between the highest industries and the general market, reaching a difference of 12% between the highest industry and the median of the entire sample”, highlighted Ivana Thornton, Mercer Career Director for Argentina, Uruguay and Paraguay.
Refering to number of expected increases, 46.2% plan to grant 4 raises; 18.7% will provide 3; 17.4% will give 6 or more; 14.1% will give 5 and only 3.6% will give two raises. The months with the highest prevalence to grant these increases are April, July and October.
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The data comes from Mercer’s survey of Salary Increase Trends in Argentina (TISA) carried out from April 21 to 28, 2023, in which 403 companies participated.
Source: Ambito
