Argentina Minimum Wage Soars by 30% Across February and March

The Argentine government has announced a 30% increase in the monthly minimum wage across two consecutive months to tackle the annual inflation rate exceeding 250% on 21 February, as reported by Reuters. 

The proposed hike would take place in two stages, raising wages to 180,000 Argentine pesos (ARS) (US$215) in February (15% hike) and ARS 202,800 (US$242) in March (30% hike).

The impact of the minimum wage increase will extend to retirements, pensions, and social subsidies, like the Universal Child Allowance.

The decision came as unions called for an 85% salary increase, citing the current high inflation levels in Argentina where accumulated inflation over the past two months has surpassed 45%.

After negotiations between workers and employers failed, the increase was initiated through a presidential decree to curb inflation, anticipating a decrease with the hope that it could slow to around 10% in February.

Additional Information:

• The most recent agreement by the council made in September 2023 established the minimum wage at ARS 156,000 for December 2023.
• The wage had remained at ARS 156,000 during December 2023 and January 2024, marking the first time it remained unchanged for more than a month since June and July 2022.
• In January, the inflation rate in Argentina was 20.6%, contributing to the overall annual inflation of 211.4% in 2023. 
• A gradual reduction in inflation is predicted in the upcoming months due to a decline in demand, resulting from a sudden weakening of people’s purchasing power and an increase in poverty levels.
• Poverty in Argentina is suggested to have reached 57.4% in January, marking the highest level in at least two decades, as reported by the Argentine Catholic University (UCA).