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Javier Milei limits the increase to 30% and clashes with the unions

Javier Milei plans to authorize an increase in minimum salaryvital and mobile (SMVM) in two installments close to 30%. After the lack of agreement last Thursday between the guilds and businessmen, the Government will issue a ruling where it will enable an increase in two installments, the first to be charged for 18%/19% and the second for 12%/11%, with which the There would be a minimum of around $202,800 starting from the third month of the year.

At the last meeting of the Council of the Salarythe increase in the SMVM unleashed a strong claim from the CGT and the CTA due to the refusal of the business chambers to grant an 85% increase as the unions demanded.

In the absence of an agreement, now the Ministry of Human Capital, which has the Ministry of Labor under its orbit, must issue a ruling to set the percentage increase. Government sources confirmed when asked Ambit that the increase will be around 30% and in two installments.

Javier Milei and the fiscal restriction

The 30% increase cap is due to the fact that in the midst of a program of strong fiscal restriction, the Government does not want the calculation of minimum pensions, the Empower Work plan, the AUH and the progress scholarships, tied to the amount, to be triggered. of the SMVM.

The minimum, vital and mobile wage was last increased in December of last year. But December inflation was above 25% and January inflation was above 20%. Currently the SMVM reaches $156,000 and with the staggered increase of 30% it will be far from the 288,000 pesos that the unions sought based on their claim of an 85% increase.

If the 30% increase that the government of Javier Mileithe SMVM would reach $202,800 and would be the new basis for the calculation of the Empower Work plan that pays an amount equivalent to half of a minimum wage, that is, it would go from the current 78,000 to 101,000 pesos.

The same would occur for the calculation of the minimum retirement, which cannot be less than 82% of the minimum, vital and mobile salary. This modification of the SMVM also impacts the Progresar Scholarships and the AUH in the midst of the strong fiscal adjustment program promoted by Luis Toto Caputo from the Ministry of Economy.

Last week, Milei had said that he will not set the Minimum Living and Mobile Wage (SMVM) by decree , after the frustrated meeting of the Salary Council, which was described by the CGT as a “historic rupture” and, given which, they do not rule out possible new forceful measures. “Isn’t this an issue that has to be addressed by workers with their employers? I don’t think a politician can determine a price by hand. It doesn’t even occur to me. Am I going to issue a decree setting a price?” the President asked.

The concrete thing is that the Government’s ruling will arrive this week and while Sandra Pettovello and the Secretary of Labor, Omar Yasin, define who will sign the minutes with the 30% increase, the union centers are preparing new forceful measures.

The co-secretary general of the CGT, Hector Daercriticized the businessmen and the Government for the failure in the negotiations and considered the fact as “a historic break” in that area. In this regard, the leader of the health union also did not rule out the possibility of “concreting the forceful measures that are necessary and when we have to do them.”

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