The government of Javier Milei made the decision to convene the Salary Council to set a new increase to Minimum Vital and Mobile Wage the next December 19. The call will be made in the next few hours through a decree in the Official Gazette.
In the resolution to which he had access Scope, the Minister of Human Capital, Sandra Pettovello, current owner of Advice, formalizes the call to the business sector and union representatives for the meeting that will take place on the 19th at 4:30 p.m.
As the order of the day, the Advice will discuss a possible increase in Minimum, Vital and Mobile Wagejust like the minimum and maximum amounts of unemployment benefit.
The SMVM reaches “all workers included in the Employment Contract Regime approved by Law No. 20,744in the Agrarian Work Regime, of the National Public Administration and of all entities and organizations of the National State that act as employers.
The Salary Council will meet again after the July meeting
At the end of July, during the last meeting between employers, unions and the Government failed to reach a consensus and the administration of Milei ordered to grant sums by decree. The floor went from $234,315.12 to $254,231.91 for that month.
In addition, it advanced the increases for the following months. The SMVM rose to 262,432.93 pesos in August, 268,056.50 in September and 271,571.22 in October. Since then it has remained unchanged.
After negotiations failed in July, the CGT issued a strong statement titled “Soup again: a business offer that does not measure up to the circumstances”. In the text they talk about “social insensitivity” on the part of the employers for the proposal of $245,094 presented by them, far from the $480,000 that the workers’ union had requested.
Besides, They asked the Government not to validate this “shameful offer.” Finally, the Government decided to determine a floor just above that suggested by the business sector.
Minimum wage, on the floor: purchasing power collapsed 28.4% in October, reaching the minimum of 2023
He minimum, vital and mobile wage (SMVM) had a brutal loss of purchasing powerproduct of the effect of currency devaluation and its impact on prices. According to a report prepared by the Research and Training Center of the Argentine Republic (CIFRA), linked to the Central Workers of Argentina (CTA), There was no recovery for the minimum wage since in October with $271,571 it showed a real value 28.4% lower than in November 2023. For its part, if compared with the Cambiemos management, the purchasing power of the minimum wage is 39.9% lower than in 2019 and 54% lower than in November 2015.
“The historical setback is so great that the real value of the minimum wage is already lower than that prevailing for most of the 1990s and in the final crisis of the convertibility regime, when this policy had been abandoned as a tool to determine salary floors and promote lower salary inequality,” the study stated.
According to this report, the minimum wage reveals a situation “worse than that of 2001” given that The current October one is only enough to cover 54.3% of the basic basket of food, which defines the indigence line for a typical family and just over a quarter of the poverty basket.
Source: Ambito
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