The comparison of the minimum wage with the poverty and indigence lines also reflects this historic decline. In July, it covered 56.8% of the basic food basket.
He Minimum salary, vital and movil registers a drastic fall in the months of the government of Javier Milei. Currently, the salary floor is set at $234,215 and has not been updated since MayCompared to November 2023, their purchasing power has decreased by 32.1%.
“Since the new government took office, two meetings of the National Council on Employment, Productivity and the Minimum, Vital and Mobile Wage have been held, in February and May,” begins a CIFRA CTA report that analyses the dramatic situation.
Both meetings concluded with decisions by the Ministry of Labor, “which determined the salary increases for the year. The nominal increases totaled 60.5% compared to November 2023, while the projected inflation for the same period exceeds 136%. This has resulted in a real loss of almost a third of the minimum wage,” he says.
This reduction adds to the significant decreases that occurred in previous years, with an annual drop of more than 10% during 2018, 2019 and 2020. In July 2024, the real minimum wage is 43% below the November 2019 level, at the end of the Cambiemos government, and 564% below the level of November 2015.
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Alarming data
Furthermore, the report maintains that the current value is lower than that of most of the 1990s. At that time, as now, the minimum wage was so low “which had lost its function as a salary floor, in a context of deregulation and flexibility of the labor market promoted by the government“, he warns.
The comparison of the minimum wage with the poverty and indigence lines also reflects this historical decline.In July, the minimum wage only covers 56.8% of the basic food basket that defines the poverty line for a typical family and 25.6% of the poverty basket, figures similar to those of the convertibility crisis in 2001/2002.
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Had we not suffered the loss of purchasing power since the end of 2015 until now, The minimum wage in July of this year would be approximately $540,000 and would represent more than 143% of the basic food basket mentioned.
Source: Ambito
