The average salary of formal workers continues below the poverty line. What is RIPTE and how is it calculated?
The formal salaries recorded their fourth consecutive month of decline in inflation in February, accumulating a drop of 23.9% since Novemberand are approaching the historical minimum of the end of convertibility.
The Taxable Remuneration of Stable Workers (RIPTE) reflected that Salaries increased by 11.5% in the second month of the year, compared to inflation that reached 13.2%as revealed by the INDEC Consumer Price Index (CPI).
What happened to salaries in February
This waythe average salary in February was $619,007.05, a value that, as in Januarywas located below the family basket of poverty. This was reflected with the data of the INDECsince a couple with 2 minor children needed $690,901.57 to cover their basic needswithout considering the rent.
Workers’ salaries had a 26% year-on-year drop in February, according to the calculations of economist Salvador Vitelli, who contributed that with the decline in the second month of the year the worst quarterly decline in the history of the index was reached. In this sense, they surpassed the collapse of convertibility over a four-month period, which was 20%, and are approaching the monthly minimum.
How the average salary ends up in 2023
He average salary ended 2023 at $484,298.40growing a 149.4% compared to the value it presented at the end of 2022 when it reached $194,175.11. The increase was not enough to beat inflation, which was 211.4% in the last 12 calendar months. The difference represented a loss of purchasing power of 20% for the 10 million formal workers in the public and private sectors contemplated by the RIPTE.
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The RIPTE is defined as the average remuneration subject to contributions to the Argentine Integrated Pension System (SIPA) received by workers who are under a dependency relationship and who have been declared continuously during the last 13 months.
The indicator is one of the variables that is taken into account for the calculation of pension mobility along with the evolution of tax collection that goes to Social Security, discounting the increase in the list of beneficiaries.
The Ministry of Social Security clarifies that for the calculation of the RIPTE the following are considered:
- The salaries evaluated are those corresponding to jobs with a seniority of 13 months or more. That is, the salaries of new jobs are excluded.
- Considers the salaries of jobs in the private sector and the national, provincial and municipal public sector that have transferred their pension funds to SIPA/ANSES.
- It only quantifies the remunerative components of the salary (taxable to the social security system).
- It takes into account the salary amount up to the taxable limit defined for personal contributions to the social security system.
Source: Ambito
