A report from the Ministry of Labour, the minimum wage and wage restructuring have improved compared to December. However, they are still at a low level.
In August, the real primary expenditure The accrued pensions fell by 25.9% year-on-year. Considering the first eight months, the contraction in real terms was 30.4% compared to the same period last year. In the case of pensions, there was a 9.8% real reduction in year-on-year terms and one social benefit stood out for its growth this month.
Among the accrued items with the greatest real adjustments compared to August 2023 are transfers to provinces (-67.8%), public works (-63.3%) and spending on social programs (-54.5%). On the other hand, The 24% year-on-year increase in spending on family allowances and AUH stands out, This was reflected in a report by the consulting firm Analytica.
How much did the Government spend on pensions?
In August, the accrued expenditure on retirement and pensions had a reduction of 9.8% year-on-year in real terms, and considering the accumulated figure for the first eight months, the fall is 20.3% year-on-year. The spending trend coincides with the evolution of salaries, and after both hit a minimum in the first quarter, with the new adjustments and the partial recomposition for inflation, Both variables have recovered, placing them at levels slightly above those of December.
The downward trend in spending on retirement and pensions implied the same dynamic in the coverage of benefits. Meanwhile, bonuses continued to be granted, just as in the previous government, for minimum wages. Thus, in the first eight months, The item corresponding to ‘Supplements to pension benefits’ increased by 15.9% year-on-year in real terms.
The reinforcements imply a significant difference since the minimum income without bonus currently covers 104% of the average total basic basket for an adult over sixty years of age, while, If the bonus is added, the coverage is 136% of the basket. However, the deterioration in income in the first quarter meant that the minimum wage with reinforcement represented on average 110% of the equivalent basket, being slightly above the poverty line.
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No transfers to the Treasury
Finally, Analytica highlights that transfers to provinces include National Treasury Contributions (ATN). In August, no transfers were recorded under this concept, and so far this year The drop is 62.2% year-on-year in real terms.
Source: Ambito
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