The real drop in the purchasing power of a retiree who does not earn the minimum is currently 43%. That of a retiree who earns the minimum and the bonus is 26.5%. That of a public worker is 35%. And that of a formal private worker is 22%.
In Argentina there was a Discrete exchange rate jump in the month of December 2023. This, obviously, impacted the price level and consequently the real level of income of the population, basically of employees and retirees. Having passed 10 months of the discrete devaluation, it is important to analyze the behavior of the real income of private and public workers, as well as retirees.
In this study we analyze the evolution of the real income of formal private workers, public workers, retirees who earn the minimum salary and retirees who have salaries above the minimum (You work with a person who earns a salary equivalent to 3 minimum salaries).
In November 2023, the month prior to the discrete devaluation of the exchange rate, the real formal private salary was 19.8% lower than the average formal private salary in 2017. The real public salary was 22.4% lower than the formal private salary of 2017. in 2017. The minimum retirement with a bonus was, in real terms, 23.8% lower than in 2017. For its part, a real pension asset was 46.5% lower than the real average in 2017. This It was the situation chart of real income in Argentina, comparing the year 2017 with the month of November 2023.
Comparing with the year 2017, The real drop in the purchasing power of a retiree who does not earn the minimum is currently 43%. That of a retiree who earns the minimum and the bonus is 26.5%. That of a public worker is 35%. And that of a formal private worker is 22%.
All cases record significant losses. If the comparison is made with the situation prevailing in November 2023, retirees are in a similar relative situation. Formal private workers were also in a relative situation similar to that of November 2023 in July. The people who are in a different situation are public workers, since in November 2023 their real income was 22% below that of 2017 and is currently 35% below. Given an alternative scenario of hyperinflation, for the national government the current real situation of retirees and formal private workers is very reasonable. Consider that the losses, in that case, would have been much greater
Looking ahead, there are significant challenges to improving real incomes. The Government defends the fiscal balance as a necessary condition for the stability and recovery of economic activity. Within that framework, Ways will have to be found so that retirees who made their contributions during their working lives have decent purchasing power. Something similar should happen with the income of public employees. Private employment seems, at least today, with the clearest path to recover real income, hand in hand with greater private investment.
Source: Ambito
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