Argentine government prepares an anticipated increase in the minimum wage


The Argentine Government is preparing in the coming days to convene the Salary Council in advance and there to discuss, together with union and business representatives, an advance of the quotas scheduled between now and December in the Minimum, Vital and Mobile Salary (SMVM) so as to raise the reference salary floor in non-agreed and informal activities and, in addition, influence the value of social plans, which are calculated on a proportional basis of this salary.

With the insistence of the General Confederation of Labor (CGT) and other labor unions, such as the CTA, the Ministry of Labor would issue a resolution this week summoning the 32 members of the Salary Council to discuss an advancement of the quotas established in March for bring, only in December, the minimum wage to $47,850 (409 dollars).

Union officials told El Cronista that the advancement of the schedule “had been discussed” with the Casa Rosada. Although the kick for the movement now planned will be the strong internal discussion that generated the claim of Kirchnerism, at the end of last week.

At a time when the main unions are agreeing to raises of around 60%, the trade unionists hope that the reopening of the dialogue will be taken as “a gesture towards the most vulnerable sectors”, and they even intend to discuss some additional rise.

Last Thursday, Máximo Kirchner had demanded that the Government, the unions and the business chambers advance the quotas of the minimum wage, which should rise 10% in June, 10% in August, and 7% in December.

It is worth mentioning that the remuneration of employees and mixed income, such as self-employed workers or monotributistas, is below the remuneration of companies.

A study by the Research and Training Center of the Argentine Republic recorded that the contribution to GDP of wage earners -formal and informal- is 43% of the total, a number close to the worst distribution of income in the country. That is why, for example, Máximo Kirchner, a deputy for the Frente de Todos, presented a bill on Thursday to bring forward to July 1 all the increases scheduled in the Salary Council for 2022 and bring the Minimum Salary to $47,850. Vice President Cristina Kirchner also dedicated several lines of her speech to her.



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