This week, the RIPTE data for July were released, which showed a real improvement of 2.5%. However, specialists say that there are indicators that better measure wage dynamics.
The Average Taxable Remuneration of Stable Workers (RIPTE) grew in July for the fifth consecutive month in real terms, although it still remained below the level received by the Government. This is the indicator preferred by Javier Milei’s administration to show that wages are on the rise, although economists often question its reliability due to its methodological construction.
According to data published this week by the Ministry of Labor, the RIPTE increased by 6.6% nominally to reach $994,681.38. Excluding inflation, which in the seventh month of the year reached 4%, the improvement was 2.5%..
Thus, the evolution of real wages would be showing a recovery of 17.4% compared to the February level. Even so, The number is still 5.1% lower than in November 2023prior to the devaluation that wiped out workers’ income.
The indicator once worked reliably as a parameter of wage dynamics, but in recent months there has been a strong divergence with other indicators, such as those from INDEC and those from the Argentine Integrated Pension System (SIPA).
Salaries: reasons why RIPTE is not the most appropriate indicator
First of all, RIPTE does not arise, as SIPA does, for example, from specific salaries but rather the base considered for social security contributions, which today have a limit that is updated every three months.
When this ceiling is reached, as happened at the beginning of the year, the RIPTE evolves at a slower pace than the rest of the salary indicators. On the contrary, when there are adjustments to this ceiling, the RIPTE accelerates more than the SIPA or INDEC figures.
On the other hand, the RIPTE does not contemplate non-remunerative concepts of wages, which, given the current inflationary dynamics, gained a lot of weight in the settlements made by employers.
Even on the website of the Ministry of Labor itself, they explain that the RIPTE was prepared as an input to determine retirement mobility but “does not necessarily reflect the evolution of wages in registered private employment” because it excludes:
- Salaries for newer jobs (since it is based on the income of workers who are employed and have been declared continuously for the last 13 months).
- Non-remunerative components of salary.
- The surplus between salaries and the maximum salary amount defined for personal contributions to the social security system.
Source: Ambito
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