With the Decree, as published in the Official Gazette, the Government seeks to stabilize public finances and confront the economic crisis that afflicts the country.
In response to the controversy generated over the weekend by the salary increase for the leadership of the national Executive authorized by the president Javier Milei from 48%through the Official bulletin and under the Decree 235/2024, the Government made the reversal official with the increase and freezing of the salaries of the Executive Branch.
With the Decree, according to the Official Gazette, the Government seeks to stabilize public finances and confront the economic crisis that afflicts the country, so “has taken decisive steps to reduce state spending“. In this context, A modification was enacted in the remuneration of the Higher Authorities of the National Executive Branch“with the firm purpose of contributing to economic recovery and guaranteeing equity in the sacrifices that the situation demands.”
The fine print of the measure
- Repeal of article 4 of Decree No. 206/24: this article, which contemplated a salary increase for Higher Authorities, is repealed, “reflecting the Government’s will to contain expenses and face the economic reality of the country“, says the official text.
- Setting of remunerations at the amounts as of December 31, 2023: In line with the policy of austerity and fiscal responsibility, “it is established that the remuneration of these authorities will remain at the levels in force at the end of the previous year.”
- Limitation of future salary modifications: It is established that any adjustment in the remuneration of Higher Authorities “cannot be made within the framework of collective labor bargaining” for the National Public Administration, unless there is an express provision that allows it.
- Creation of the Technical Advisory Commission on Public Sector Salary Policy: said commission will have the task of issuing explanatory and complementary rules to guarantee the effective application of the measures adopted.
Likewise, the text maintains that these measures will come into force from February 1, 2024with the aim of ensuring responsible management of public resources and moving towards economic recovery.
Finally, the Government recognized that these decisions may generate controversy, but emphasizes the need to adopt firm and equitable actions in times of crisis, which is why it calls for solidarity and commitment from all sectors of society, “for the construction of a prosperous future for Argentina“.
The norm bears, like the decree that approved the salary increase (48%) for the Executive, the signature of Javier Milei and the Chief of Staff, Nicolas Posse.
Source: Ambito
