The Government has finally called a meeting of the Minimum, Vital and Mobile Salary Council (SMVM) for July 18 at 2:30 p.m. The council, which was supposed to have been convened at the beginning of June, brings together representatives of employers and unions to determine the value of the SMVM and the unemployment benefit. If there is no agreement between the parties, the Government will make the final decision.
The minimum wage in Argentina has been gradually increasing over time, with a new value set for April and May 2024 due to a lack of agreement between business and union representatives. Inflation has been high in Argentina, resulting in a deterioration of purchasing power for workers. However, despite this challenge, the SMVM has increased by only 50.2% while inflation was at 71.9% in May, which is below average.
The upcoming meeting of the SMVM Council will be an important opportunity for stakeholders to come to an agreement on these important issues. The determination of both the SMVM and the Unemployment Benefit are crucial for ensuring fair wages and support for workers in Argentina. The Unemployment Benefit is set at 75% of a worker’s best previous monthly remuneration and cannot be less than 50% or more than 100% of the SMVM. The number of workers collecting this benefit has increased due to layoffs in the private sector.
Overall, it is important that stakeholders work together to ensure that both these crucial aspects of labor policy are determined fairly and equitably in Argentina.