While waiting for news for informal workers within the framework of the economic measures announced by the minister-candidate Sergio Massa, The Government made official the call for Salary Council for next September 27, with the aim of defining a new increase in the minimum salary and unemployment benefit.
When will the salary increase in October 2023?
The meeting was scheduled for October 15, but the Government decided to bring it forward due to skyrocketing inflation, which rose to 12.4% in August.
“The members of the National Council for Employment, Productivity and the Minimum, Vital and Mobile Wage are called to meet in an ordinary plenary session on September 27, 2023, at 4:00 p.m., through a virtual platform. The second call is established session for 4:30 p.m. that same day,” according to the official text.
As an agenda, the appointment of two Councilors present from each sector was set for the signing of the minutes, and the consideration of the issues brought to the plenary session by the Minimum, Vital and Mobile Wage and Unemployment Benefits Commission.
This last Commission will meet at 2:00 p.m. on Wednesday the 27th, to determine the minimum wage and the minimum and maximum amounts of unemployment benefits.
How much is the Minimum, Vital and Mobile Wage in Argentina?
The last update of the minimum wage was applied in June, when businessmen and union members approved a 34% increase in three sections, between July and September, which raised that income to $105,500, then to $112,500 in August and reached $118,000 this 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.
The modification of the minimum salary impacts unemployment benefits. Potenciar Trabajo plan, the Acompañar Program and the Progresar scholarships, among other state subsidies.
How will the increase in the Minimum Wage impact the Income Tax
The floor of the non-taxable minimum for the payment of income tax During the last quarter of the year it would rise to $2 million as a result of the increase in the Minimum Living and Mobile Wage (SMVM) that will be discussed next Wednesday.
This was estimated by tax expert Sebastián Domínguez, who specified that “the calculations must be made with the values in force as of October 1 and that is why the minimum will be between $2 and 2.1 million.”
The Ministry of Labor convened the Minimum Living and Mobile Wage Council (SMVM) for next Wednesday, where basic salaries will be updated and this will impact the payment of Income Tax
In dialogue with NA, Domínguez clarified that for the section of this year in which the decree that increased the non-taxable minimum is in force, all workers whose salaries are below the floor will benefit, but not when the law that yesterday it had approval from the Chamber of Deputies.
“In the decree, the payment of the tax is defined by the salary, but the law differentiates between an employee and a manager. The schedular tax will not apply to those who are managers (based on 15 SMVM) but the Income Tax will apply. normal,” he said.
Regarding the payment of the tax on the bonus, he explained that it will be taxed under the same scheme. That is, 15 SMVM will be taken as a floor and consequently, with the new projected values, a bonus of $1 million would be exempt from paying the tax.
The project to modify the Income Tax for 4th category employees had half a sanction last night from the Chamber of Deputies and will now be debated by the Senate.
The vote showed 135 endorsements, 103 rejections and no abstentions.
With current values, the fiscal cost of the measure will be 0.83% of GDP, which is equivalent to $3 trillion, as estimated by the Congressional Budget Office (CPO).
The organization calculated that “for the Treasury, a negative fiscal impact in 2024 is estimated equivalent to 0.30% of GDP ($1.05 trillion at 2024 prices),” and projected that the national Judiciary will have an impact of $100.5 billion ( 0.03% of GDP), the AFIP another $55,600 million (0.02%) and funds for Contributions from the National Treasury for just over $28,000 million.
In addition, the study projected the cost that the provinces will have to absorb at $1.6 billion, taking into consideration that Profits is one of the main co-participating taxes.
Source: Ambito
