Argentina: minimum wage to rise by 45%

The Argentine government last week announced a minimum wage increase of around 45%, following an agreement – the result of a unanimous vote – between the country’s ministry of labour as well as representatives of trade unions and employer organisations. Under the agreement announced on Wednesday 16 March, the minimum wage will stand at 47,850 pesos at the end of the year, the equivalent of €395 at the current official exchange rate, which is subject to possible devaluations, depending on fluctuations in the economy. Argentina’s centre-left president Alberto Fernandez said: “We are taking a big step in the direction we want, as the recovery of wage levels is a central issue for the government.” Currently standing at 33,000 pesos, the minimum wage is to be increased in several stages: in April (+18%), June (+10%), August (10%) and December (+7%). “The parties will be able to request a new meeting from August onwards to revise [the agreement],” the government states, at a time when rampant inflation is eating away at the purchasing power of Argentinian people and blunting the impact of increases made each year. In February 2022, the inflation rate had been 52.3% over the previous twelve months, according to data from Argentina’s National Institute of Statistics and Census (INDEC). The broad price rises that have represented an endemic burden for the Argentinian economy are what the president is seeking to tackle with a series of measures announced on Friday 18 March.