The minimum salaries without bonus that retirees will receive in November will have almost tied inflation one year elapsed until now. It is estimated that the 252,782.40 that they will collect for their October settlement They are 2% below what they received in the same month of 2023.
But if you compare the out-of-pocket salaries, which include the $70,000 bonus, between both periods the drop will be between 17.5%. Next month they will receive $322,700 in hand. In November of last year, with another quarterly update formula, the bonus was $37,000, while the minimum credit was $87,479, giving a total of $124,479.
The liquefaction of minimum pensions, by including a discretionary component outside the adjustment formula, is one of the most important ingredients of the tax cuts that Javier Milei’s government has been carrying out.
On the one hand, the Casa Rosada ensures that Minimum assets are adjusted by the Consumer Price Index (CPI) from the previous month, but for another, has maintained the fixed bonus since March.
The result is that approximately $25 of each $100 adjustment was contributed by retirees And within this, the most affected have been the poorest. The beneficiaries who are in the upper scale have not been affected in the same way because by not receiving a bonus they have received all the increases in full.
Retirement minimum without bonus rose up to here by a nominal 189%. He bonds, meanwhile, advanced 89%, while pocket assets grew 159%. All against an inflation that would be at 195% annually in October. In real terms, the first would have lost 2%, the second 53.5% and the combination of both 17.5%.
If you compare against january of this year, lMinimum rates without bonds rose 139% nominally, the bonus 27%, and the combination of both 100%.
Since March, each minimum retiree loses $61,000
The Center for Argentine Political Economy (CEPA) drew up some projections on the fundamental impact of the bonus for the liquefaction of the income of retirees and pensioners.
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“Today it was confirmed in the Official Gazette that the bonus for minimum retirements remains at $70,000, the same amount that has persisted since March,” says CEPA.
The report states that “the minimum guaranteed amount will then be $322,799. If the bonus had been updated in the same way as the retirements, it would have amounted to $131,600 and retirement minimum would reach $384,399”he points out. That is, each minimum retiree would have had to receive $61,600 to maintain the value of the equivalent bonus.
The CEPA, which is directed by the economist Hernan Letcherperforms a quarterly comparison of salaries, because in 2023 an adjustment formula was in force every three months.
“Contrary to the official discourse, in the September-November 2024 quarter, the minimum retirement with a bonus will be 13.7% below the same period in 2023. The quarterly comparison is an essential requirement given that the previous year the formula was updated with that dynamic,” says the economist.
The study specifies, meanwhile, that “retirement without bonus will be located in the equivalent quarter 4.6% below the equivalent period of 2023.”
The adjustment dynamic continues in 2025
The 2025 Budget foresees that the same blender regarding retirements will continue next year. The project determines that the $70,000 bond will be frozen. If the evolution of the inflation forecast in the 18.3% project were followed, which is quite optimistic, the bonus at the end of the year should be $167,446, which implies that They will have liquidated $97,446 from each beneficiary.
Source: Ambito
