The Government of Javier Milei extended the guidelines linked to salary negotiation in the national public sector, in line with its policy of reducing public spending.
The Government extended until December 31, 2025 the guidelines linked to salary negotiation in it National Public Sector, with the aim of optimizing resources and “guaranteeing salary equity”, in line with its reduction of public spending.
The extension was formalized this Tuesday, January 7 through the Administrative Decision 1/2025signed by Guillermo Francos, Federico Sturzenegger and Luis Caputo. This decision extends the validity of the Administrative Decision No. 28/2024issued on February 1 of last year.
State salaries: main points of the extended decision
The original measure established guidelines for salary negotiation in the National Public Sector until December 31, 2024 (now extended to 2025), with the following key objectives:
- Salary update: Staff salaries must be adjusted through collective negotiations that respect the regulatory framework, include the participation of relevant actors and comply with current budgetary forecasts (Law No. 27,701 and Decree No. 88/2023).
- General parity criteria: Salary updates in State agencies, companies and trust funds must be based on the general negotiations provided for by Law No. 24,185.
- Budget constraint: Collective agreements must be negotiated within available budgets, promoting efficiency and salary equity.
- Role of the Technical Advisory Commission: This body defines measures and agendas to manage salary or conventional modifications within the framework of the National Public Sector.
- Responsibility of the authorities: Each jurisdiction and agency is responsible for complying with established guidelines.
State salaries: delay in the parity and layoffs
The context for this extension is marked by the lack of agreements in the joint negotiations with state workers. At the end of 2024, the Casa Rosada called on the unions to discuss the 2025 increases, but the meetings ended without consensus.
From the Association of State Workers (ATE) they accused the Government of delay salary increases to continue with the fiscal adjustment. According to the union, the loss of purchasing power since the assumption of Javier Milei It amounts to 40%, considering the accumulated inflation of 112% and the salary agreements of 73% until November.
The union demands a fixed sum that allows the lowest income of the public administration to be recovered and compensate for what was lost in 2024. Among the most affected sectors, they point out the civilian personnel of the Armed Forces, the SINEP (National Public Employment System) and the personnel of Health.
The joint discussion takes place in a context of uncertainty for public sector workers. Since December, the state plant has been reduced by more than 35,000 workers, according to official data. In addition, on December 31, more than 57,000 temporary contracts expired, and It is not yet known how many will be renewed.
Source: Ambito
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