For the third consecutive year, on average, wages of workers in a dependency relationship registered with Social Security and who kept their jobs they lost the race against inflation.
Last December, formal salaries increased 2% – versus 4% inflation – and ended 2020 with an increase of 34.9% versus a year-on-year inflation of 36.1%.
It represents a 0.9% loss that is added to the wage decline in 2018 and 2019.
Thus, in three years, the salaries of formal workers accumulate a loss of 17.6%. And if that loss affected registered workers, to a greater extent it affected unregistered or informal wage earners.
This real drop in wages is wider in relation to the total basic food basket, which in recent years has increased more than average inflation itself.
The data are official and correspond to the RIPTE (Taxable Remuneration of Stable Workers) that considers the remuneration with contributions to the Argentine Integrated Pension System (SIPA) that workers under a dependency relationship receive and that have been declared by the companies continuously during the last 13 months, a period with strong loss of registered private jobs.
In 2018, the RIPTE increased 30.6% against a year-on-year inflation of 47.6%. A loss of 11.5%.
In 2019, end-to-end formal salaries rose 44.4% and year-on-year inflation was 53.8%. Another loss of 6.1%.
And in 2020, far from the recovery promised during the election campaign, there was a smaller decline (0.9%) that accumulates than in previous years, totaling a loss between December 2020 and the same month of 2017 of 17.6%.
Consequently, if the Government’s claim, through a social agreement, is that in 2021 wages are tied to year-on-year inflation, officially estimated for December 2021 at 29%, this year the loss in recent years would not be reversed either. years. And that as long as inflation does not exceed the official target of 29%.
The wage loss is enhanced by the fall in formal employment. In relation to December 2017, the number of formal salaried employees in the private sector decreased by 501,693 workers, going from 6,296,864 to 5,795,171 in October 2020, according to the latest official data from the Ministry of Labor. In other words, fewer formal workers with lower wages.
As of last December, the average salary of the RIPTE index was $ 66,869.88 gross according to the official report. In December 2019 it was $ 49,574.33.
Since it is the gross salary, the $ 66,869.88 would have to be deducted from the retirement and health contribution paid by the worker (17%) and, eventually, for workers with children, add the family salary.
Depending on the family structure, the average salary on hand would be between $ 55,500 and $ 62,000. The cost of the family poverty basket for a typical family (married couple and 2 children) was $ 54,207.53 in December, according to INDEC.
In addition, the RIPTE variations intervene in the calculation of the retirement mobility of the General Scheme of the SIPA and in the calculation of compensation for work accidents.
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source https://pledgetimes.com/in-2020-formal-wages-lost-again-to-inflation/
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