Although the retirements increased by 4.03% in the month of Septemberin line with the inflation July, as provided for in the latest formula of retirement mobilityWith the $70,000 bonus, lThe lowest salaries on the scale reach $304,540which implies a real drop (that is, considering inflation) of 24.2% compared to September 2023 and 19.2% if we take it from December, explained a report from the Renewal Front.
It should be noted that The current formula was promoted by the government of Javier Milei through a DNU which replaced the previous regulations that provided for quarterly increases based on the combined increase in salaries and pension collections. ANSES.
With the new system, Pension assets are updated every month according to the Consumer Price Index (CPI) prepared by INDEC. That is, they will be adjusted for inflation. In addition, an extra adjustment of 12.5% was granted to incorporate part of the inflation of January 2024 (which was 20.6%).
With this increase, the minimum pension became $234,540.. It was also confirmed the continuity of the compensatory bonus for $70 thousand for those who receive the lowest salaries on the scale, so A retiree will receive a minimum of $304,540 this month.
Besidesif we take into account the latest law passed by the National Congresswhile maintaining the inflation update, established that the initial extra increase should be 20.6% (in line with January inflation)and had a special clause so that, in cases where salaries increase above inflation, pensions are increased by 50% of this favorable difference. It also states that the minimum wage cannot be less than the equivalent of 1.09 basic baskets per adult. The government vetoed the law outright.
Pensions: How the purchasing power of minimum wages has changed
The Government maintained the $70,000 bonus, so the lowest salaries on the scale reach $304,540which implies a real drop (i.e. taking inflation into account) of -24.22% compared to September 2023 and -19.21% if we take it from December.
In turn, pensions above the minimum, which do not receive bonuses, had a year-on-year drop of 17%, and if we take it from December the drop in real terms was 5.40%. The difference with the minimum lies in the effect that the bonus freeze has on the final result.
In order for the purchasing power of the minimum wage to be maintained with respect to September 2023, The compensatory bonus should be $170,000, while with an extra $50,000 the lowest pensions on the scale would be in line with what they were a year ago.
On the other hand, If we measure the minimum retirement (plus the bonus) in dollars (we take the parallel one, since the official dollar is fixed at 2% monthly), and we adjust it for inflation in dollars which was 68% (from December to date, according to data from the consulting firm “Economy and Ethics”), we went from a retirement of US$267.39 in December 2023 to US$236.26. A fall in real terms of -11.54%.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
