On Friday, August 26, the Argentine government officially announced a 21% increase in the minimum living and mobility wage in three installments, from ARS 47,850 (US$346) per month to ARS 57,900 starting in November.
In this way, the government is attempting to contain inflation, which has risen sharply due to domestic causes and the international situation, marked by the war in Ukraine and increasing energy prices.
This minimum wage increase was decided earlier this week at a meeting of union representatives, employers, and civil servants.
The minimum wage in Argentina will be increased by 21% in three installments of seven between September and November, with a review clause in the last month.
The minimum and maximum unemployment benefits will also be raised next November to ARS 16,083 and ARS 26,805, respectively.
In addition, the “Empowering Work program” (“Potenciar Trabajo”), under which one million Argentines work for half the minimum wage, the “Progress Scholarships program” (“Becas Progresar”) and minimum pensions will be affected.
After implementing the three tranches of increases, minimum wages, living wages, and mobile wages will have increased by a total of 75% since the beginning of the year, while the pace of inflation has accelerated due to the country’s strong macroeconomic imbalances and the international situation.
According to the latest official data, prices in Argentina rose 71% year-on-year in July and accumulated a 46.2% increase in the year’s first seven months, compared to 51% a year earlier.
Market analysts surveyed monthly by the Central Bank of Argentina (BCRA) also forecast an annual inflation rate of 90.2% for December 2022 in their latest report, which could be even higher.
With information from Latina Press