According to a report from the Research and Training Center (CIFRA), in April 2024 the purchasing power of the minimum wage is 44.7% below the level it had in November 2019.
The minimum, vital and mobile wage shows a very strong decline since the assumption of Javier Milei as president today and its value, which had been set for the month of December, was absolutely below the 25.5% price increase of that month, but, at the same time, when The Salary Council was convened lateit became clear that there were no intentions on the part of the government to recover the lost purchasing power.
The Ministry of Labor defined there a total increase of 30% in sectionsaccording to a report by Research and Training Center (CIFRA) of the Central Workers of Argentina (CTA), caused the salary to deepen its fall “due to the unprecedented absence of proposals from the business representation in said Council.”
Wages rise behind inflation
Minimum salary was set at $202,800 since March and, thus, between November 2023 and April of this year, it nominally increased 38.9% compared to an inflation that can be estimated at more than 110%. “In just a few months, a real reduction of 34.1% was achieved,” reports CIFRA.
Given the previous reductions that had already taken place, in April 2024 The purchasing power of the minimum wage is 44.7% below the level it had in November 2019at the end of the Cambiemos government, and 57.7% below that of November 2015.
Salary: how much purchasing power you lost
Likewise, they warn that, given that the price increase has recently been higher for food than for the rest of the goods and services, the loss of purchasing power of the minimum wage is greater when it is counted exclusively in food:
- 51.7% compared to November 2019 and
- 63.0% compared to the same month in 2015.
“If the loss of purchasing power of the minimum wage happened from the end of 2015 to date, in the current month of April this salary would have been almost $480,000. The decline is so great that the real value is even below the 2001/2002 level,” diagnoses CIFRA.
Also in the comparison with the poverty and indigence lines, the historical decline is evident. “In April, the minimum wage was only enough to purchase a little more than half of the basic food basket that defines the line of indigence for a typical family and less than a quarter of the poverty basket, relations only comparable to the worst moment of the crisis after the outbreak of the convertibility regime” reported the work.
Source: Ambito
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