The Government called the Salary Council for next week

File photo showing a worker working on a building in Buenos Aires (Argentina). EFE/Juan Ignacio Roncoroni

The Government called for next week the National Council for Employment, Productivity and the Minimum, Vital and Mobile Wage.

According to Resolution 10/2024published this morning in the Official bulletinthe summons to meet in ordinary plenary session is the next July 18th at 4:30 p.m. -via virtual platform-. The call for a second session will be on the same day at 6 p.m.

The Ministry of Employment and Social Security The meeting set as the agenda the appointment of two present counselors from each sector to sign the minutes and consider the issues raised to the plenary by the Commission on Minimum, Vital and Mobile Salary and Unemployment Benefits. Within this framework, next Thursday at 2:30 p.m. -also via virtual platform- not only the issue of the basic salary will be discussed, but also The minimum and maximum amounts of unemployment benefits will be determinedThe Undersecretary of Labor Relations of the Ministry of Human Capital, Martín Huidobro, was appointed as alternate president of the National Salary Council.

The last update of the minimum wage was in May, bringing it to 234 thousand pesos. At that time, after there was no agreement between the unions and the companies, the Government set the increases. First, it established $221,052 as of April 1, 2024 for all monthly workers who work the full legal work day; and at $1,105.26 per hour, for daily workers. While as of May 1, the minimum wage of the first employees rose to $1,105.26 per hour. $234.315,12.; while for the latter, the hourly rate rose to $1,171.58.

While it was determined that unemployment benefit is equivalent to 75% of the net amount of the best monthly, normal and usual remuneration of the worker in the six months prior to the termination of the employment contract that gave rise to the unemployment situation. In no case may the monthly benefit be less than 50% of the current Minimum Living Wage, nor greater than 100% of the current Minimum Living Wage.

Previously, in March, the Executive Branch also had to set the basic salary ($202,800 monthly and $1,014 per hour) after a failed meeting between union representatives and business chambers at a meeting of the Salary Council. The CGT had proposed $377,000 for the month of April and $411,000 for May. The CTA Autónoma had supported the proposal of the General Confederation of Labor since that amount would have been above the poverty line and had also requested that it be adjusted to the inflation rate for May. Finally, the CTA de los Trabajadores proposed $440,000 for the month of May. Since no agreement was reached, a recess was held after which the three labor unions unified the proposal at $377,600 for April and $440,000 for May. For their part, the employers maintained the same offer. Unable to finalize the numbers, the Government ended up establishing the increases of the last few months, bringing the current figure to 234 thousand pesos. Unions and companies will meet again in a week with the aim of agreeing on new increases that take into account the current economic scenario.

The latest survey of Salary Increase Trends in Argentina (TISA) of Mercer, human resources consulting firm, reported that in June Argentine companies project cumulative salary increases of 180% during 2024This percentage represents a drop of 11 percentage points compared to the May report, in a survey conducted among 504 companies with operations in the country.

However, due to the slowdown in the inflationthe increases are 18 percentage points higher than the retail price index expected by the panelists of Latin Focus for the whole year (162%). This is evident from the report published by the consultancy firm.

If the official expectation raised in the 2025 Budget advance sent last week by the Executive Branch to Congress is taken into account, the increase would be even greater. The norm estimates an inflation of 130% year-on-year for December. This means that the Government expects a Consumer Price Index (CPI) of the monthly Indec for the remainder of the year of around 4%.

The work highlights that the Current macroeconomic outlook and the context of “high uncertainty” continue to represent a challenge for organizations when offering salary projections for the entire year. However, they noted that until May the increases had been 81% while the inflation measured by the statistical agency accumulated 72% in the same period.

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