With more than a month’s delay, the Government convenes the Minimum Wage Council

Finally, with a long delay, the Government called the Minimum, Vital and Mobile Salary Council (SMVM) for next July 18 at 2:30 p.m. virtually. It will be chaired by Martin Huidobro, Undersecretary of Labor.

The SMVM Council, which should have been called up at the beginning of Junebrings together representatives of the employers and unions with the aim of setting the value of the SMVM and the unemployment benefit. If there is no agreement between the parties, praises the Government.

He Last value of SMVM is from MayThe question is therefore whether a new value will be set from July or whether the increase will be retroactive to June.

At the last meeting of the Council, the Government ended up setting the value of the minimum wage for April and May 2024 due to the lack of agreement between business and union representatives. Also in February, at the first meeting of the Council this year, the Ministry of Labor issued its ruling. And it set, “skipping” the month of January, at $180,000 monthly value or $900 per hour in February and at $202,800 for March or $1,014 per hour.

As of April 1, 2024, the minimum wage was set at $221,052 for all monthly workers and $1,105.26 per hour for daily wage workers, according to Resolution 9/2024. This represented a 9% increase from $202,800 in March.

Meanwhile, as of May 1, 2024, the SMVM rose to $234,315.12 for monthly workers and to $1,171.58 per hour, which in turn represented an increase of 6% compared to April and 15.54% compared to March.

Now The Government could “skip” the month of June which is also a month that has an impact on the calculation of the half bonus.

Inflation in May was 71.9%, while the SMVM increased by 50.2% (from $156,000 to $234,315). Represents a deterioration of 12.7%.

Due to the reductions in the SMVM during the governments of Mauricio Macri and Alberto Fernández and the current administration, “in April 2024 the purchasing power of the minimum wage was 44.7% below the level it had in November 2019, at the end of the Cambiemos government, and 57.7% below that of November 2015,” according to CIFRA (Research and Training Center of the Argentine Republic).

The minimum wage affects registered monthly or daily wage workers who earn less than the minimum monthly or hourly wage. And indirectly, as reference on unregistered workers or informal.

It also determines that Those who retired with 30 or more years of contributions (without resorting to moratoriums) have the right to collect 82% of the SMVM.

It also had an impact in January and July in the exemption from income tax for workers who earn less than 15 SMVM. And on the highest accumulated net taxable income on the surplus of 15 SMVM. After the vote in Congress, This rule was repealed.

The Unemployment Benefit was set at the equivalent of 75% of the net amount of the best normal and usual monthly remuneration of the worker in the 6 months prior to the termination of the employment contract that gave rise to the unemployment situation.

However, this provision has a floor and a ceiling: “In no case may the monthly benefit be less than 50% of the current Minimum Living Wage and Mobile Wagenor greater than 100% of the SMVM”, according to the latest Resolution.

Due to layoffs, the number of laid-off workers who are collecting this benefit or unemployment insurance began to increase since the end of last year and during these months of 2024 due to the decline in activity in the private sector.