what will be the salary increase for october

what will be the salary increase for october

Employees of private homes will receive the last of the three tranches of the 36% salary increase in October. Besides, National Commission for Work in Private Homes (CNTCP) will define a new salary review.

The increase impacts as follows:

  • 20% for the month of July (charged in August)
  • 8% for the month of August (charged in September)
  • 8% for the month of September (charged in October)

In addition, during October the second bonus that the Government made official for domestic employees is collected through Decree 438/2023, published in the Official Gazette.

The regulations establish the payment of a non-remunerative allowance of $25,000 for workers of the “Employment Contract Regime for Private House Staff”, which is paid in two installments of $12,500 each.

Reopening of joint ventures: when will the salary discussion take place?

The CNTCP will define in the first days of October a new salary review for workers in the sector, although it will be after the definition adopted next Wednesday the 27th by the National Council of Employment, Productivity and the Minimum, Vital and Mobile Wage.

The session of the body made up of representatives of employers, workers and the Ministry of Labor, Employment and Social Security It will begin at 4 p.m. virtually, with a prior evaluation session at 2 p.m., as detailed in Resolution 11.

How does the rise in the Minimum salary in the salary of domestic workers?

He Minimum, Vital and Mobile Wage (SMVM) determines the legal remuneration base income that an employer is obliged to pay workers for what they have done during a certain period.

“For the purposes of this law, remuneration is understood to be the consideration that the worker must receive as a consequence of the employment contract. Said remuneration may not be less than the minimum living wage or, where applicable, the professional minimum or professional salary.” , points out article 112 of the Law 20,744 on Employment Contractschapter II of “Minimum salary, vital and movil“.

Currently, the Personal category for general tasks, for an 8-hour day, is $129,670 (lowest step), with the current figure of the SMVM of $118,000. In this way, if the minimum remuneration obtains an increase of more than 9.8% in October, the salary of domestic employees would automatically exceed this figure as stipulated by the regulations.

Source: Ambito

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