Government made official the call for the Salary Council

Through the Resolution 11/2023 published in the Official bulletin, The following was also set as the agenda: 1) designation of two Directors present from each sector for the signing of the minutes. 2. Consideration of the issues raised to the plenary by the Salary Commission, Minimum, Vital and Mobile and unemployment benefits.

Among the topics that will be discussed will be the following:

1. Determination of the Minimum, Vital and Mobile Wage.
2. Determination of the maximum and minimum amounts of unemployment benefits.

Last July the CNVN approved by majority a increase in that remuneration of 34% in three sections, between July and September, which raised that income to $105,500, then to $112,500 in August and reached $118,000 in the current month.

At that meeting the CGT voted in favor, the Autonomous CTA rejected it, after claiming 55% and the Workers’ CTA led by Hugo Yasky decided to abstain in that vote.

Minimum Wage: how it impacts after the change in Profits

The recent DNU, which raised the minimum taxable floor of the income tax to the equivalent of 15 times that minimum wage to be exempt from the tax, a figure that until now would be $1,770,000.

This standard also states that the remuneration amount The one that will be taken for the exemption will be the one in force on October 1, 2023 of the minimum wage.

After the Council meeting cap of $1,770,000 will be modified again according to the percentage of increase in SMVM.

If the Council sets a 15% increase since October 1 and takes it to $135,700, in line with the food inflation observed in August, the cap would rise to $2,035,500.

Minimum Wage: how it impacts other benefits

The modification of the SMVM impacts the unemployment benefits the plan Enhance Work and the Accompany Program, in addition to the Progresar scholarships, among other state subsidies.

• ANSES Retirees: affects ANSES retirees who accessed the pension system with more than 30 years of contributions, this group may add to their monthly income the difference between the current minimum salary and 80% of the minimum wage, as long as the result gives a lower figure.
• Enhance Work: In the case of this program, which depends on the Ministry of Social Development, its amounts are updated with the same percentages as the minimum wage. The program involves a half-day (four hours) workload in jobs in different areas, and receives an amount equal to 50% of the minimum wage. Currently, Potenciar Trabajo grants 43,993 pesos. After the first update in July in the formal remuneration floor, the amount to be received by beneficiaries would go to just under $52,750 and will continue to be adjusted with successive increases.
• Progresar Scholarships: in this case the impact is indirect. For this salary aid aimed at university students, the living and mobile minimum wage works as a ceiling for the delivery of the study scholarship. The beneficiary, under 24 years of age, receives it if her family earns less than three minimum wages. From now on, this limit moves in relation to the monthly increases that the SMVM will have between until September, during the signed sections.