The Government extended the restrictions to hire new employees in the State

The Government extended the restrictions to hire new employees in the State

September 30, 2024 – 08:12

The measure was taken in line with the declaration of public emergency in economic, financial, fiscal, administrative, pension, tariff, health and social matters that expires on December 31 of this year.

Ignacio Petunchi

The Government extended the restrictions until the end of the year hire new employees in the State. He did so through Decree 865/2024, with the signature of the chief of staff Guillermo Francos and Federico SturzeneggerMinistry of Deregulation and Transformation of the State.

The decision refers to Decree 426/2022 where new hiring was prohibited until September 30. In this sense, this Monday, with the expiration of that decree, it is decided to extend its validity until December 31, 2024, in line with the Decree No. 70/23 that declared a public emergency in economic, financial, fiscal, administrative, pension, tariff, health and social matters until that date.

What areas of the national administration does this measure impact?

This prohibition includes different types of appointment and hiring although with a series of exceptions focused on the National Science and Technology System, the diplomatic corps, park rangers and the National Fire Management System, as well as hospital professionals, prison personnel, armed forces and security, among others.

When listing what types of hiring are frozen, the decree mentions “term appointments in transitional plant” according to article 30 of the Collective Labor Agreement for the National Public Administration; “the contracts provided for in Article 9 of Law 25,164” (contracts for a specific period of time to provide services of a transitory or seasonal nature); as well as “hirings for an indefinite period, fixed-term, part-time and temporary work.”

Other types of employment that are restricted are “contracting for the provision of autonomous professional services” for which the Chief of Staff, ministers, secretaries of State and heads of decentralized entities and national funds are authorized; just like “transitional appointments in simple permanent positions” and “hirings of personnel with or without a dependency relationship” even under special statutes or non-budgetary financing sources.

State salaries lost more than 20% of their purchasing power

According to the latest INDEC salary report, the salaries of public employees increased 6.7% above the Price Index but continue to lag behind in the accumulated figures. Both the formal private (105.8%) like the not registered (95.4%) They rose above the Consumer Price Index (CPI). Instead, the State employees (84.9%) lost against the cost of livinga product of public spending adjustments.

The director of the consulting firm Analytica, Claudio Caprarulohighlighted that despite the good data for July, in the accumulated variation, the fall in wages is high. “The public sector lost almost a quarter of its purchasing power. Going forward, how is the economic team going to resolve the inertia?” he asked. According to his vision, public employees lost more than 23% of purchasing power.

Source: Ambito

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