The Government made official the advance in the updating of the minimum wage, vital and mobile. According to Resolution 6/2021, in July the remuneration floor will be $27,216. The amount, in addition to being a reference for employees in the private sector, will impact on social benefits such as the Empower Work plan, the Progreso scholarships and retirements without contributions. Through the Resolution published in the Official Gazette, the national administration determined that the 35% increase that was planned in seven tranches until February 2022 will be carried out faster: there will be three readjustments in total that will end in September. That month, in addition, there will be a review.
The government considered that “the recovery of wages is a priority and constitutes a necessary condition for the economy to sustain the recovery underway,” and that “to this end, all the necessary instruments must be generated so that the income of workers grows in real terms.”
Under the new scheme, the three tranches of increases will be 6% in July (the one applied to calculate the current $27,216 salary floor), an additional 4% readjustment in August, which will bring the minimum income up to $28,080 and a final 1% increase in September. With this last percentage the amount will reach $29,160. Thus, the final sum will be the same as in the agreement signed in April, but it will arrive five months earlier. In this sense, the official text also points out that “in this intelligence that it is appropriate to vary on one of the elements contained in the agreement reached between the parties, anticipating the deadlines set so that they accompany the process in progress that can be noticed.”
The measure had already been advanced by the General Confederation of Labor (CGT), which explained in a statement that “in view of the sustained advance of inflation, steps have been taken before the Ministry of Labor, and it has been decided to bring forward the validity of the increases in the Minimum, Vital and Mobile Wage.” “The Minimum, Living and Mobile Wage is the main reference for informal and independent workers, and its updating is also linked to the retirement assets and social benefits provided by the State,” the text said.
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