The government of Argentina will set the new mandatory minimum wage, raising it by 30% during February and March, given the “lack of agreement between the parties”, conditioned by the country’s inflationary acceleration and increases in the basic food basket, official sources reported this Tuesday.
“The parties have not been able to reach an agreement, the Government must set a minimum wage and it was set for the month of February at 180,000 pesos (US$ 210 / 198 euros) and for the month of March at 202,800 pesos (US $236 / 223 euros)”, announced the presidential spokesperson, Manuel Adorni, in his usual press conference at the Executive headquarters.
The 30% increase will be applied in two tranches: 15% this month and another 15% next.
Since last December, the minimum vital and mobile wage (SMVM) has reached 156,000 pesos (182 dollars), in an inflationary context of 254.2% year-on-year, 20.6% monthly and costs of the basic basket with a year-on-year growth of 258.2%.
The SMVM focuses on negotiations between business chambers, unions and a representative of the Executive, while the Executive Branch is in charge of deciding the amounts if there is no consensus, as established in the National Constitution, as well as an initial sum to labor contracts. .
This is the first increase ordered by Javier Milei’s Executive since he assumed the presidency on December 10.
According to the General Confederation of Labor (CGT), the largest union confederation in the country, the negotiations were stalled, since the unions wanted an increase of 85%, to about US$337.
The Government was forced to define the new value by decree, a decision that Milei does not like, with an increase that has remained below inflation, since in December it was 25.5% monthly and in January, 20.6% monthly.
“We don’t like setting minimum prices, it is an issue that workers must address with their employers,” Milei had assured during an interview on Radio Rivadavia.
Source: Gestion
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