Economy

Against inflation, Argentina raises minimum wage and income tax-free bracket

The increase in the minimum wage is also part of economic measures that the government is trying to implement after the electoral defeat in the primaries

Alberto Fernández, Argentina's President. Photo: Twitter via Fotos Públicas
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  • In the first eight months of the year, consumer prices rose 32.3%;
  • By the end of the year, the Argentine government projects, inflation could reach a 45.1% high.

Facing persistent inflation that has eroded the population’s purchasing power, Argentina announced an increase in the country’s minimum wage to ARS 31,104 ($315,7) as of September and to ARS 31,938 ($324) as of October. In February 2022, a further increase is planned, to ARS 32,616 ($331). As a result, the country’s minimum wage will have increased by 55.3% in 2021, Economy Minister Martín Guzman said on Twitter.

The increase in the minimum wage is also part of economic measures that the government is trying to implement after the electoral defeat in the primaries two weeks ago. “Now, the salary is a little bit fairer,” said President Alberto Fernandez. “A little” because despite the correction, the new value in February will still be well below the cost of a basic food and service basket for an average family in the country, which currently revolves around ARS 68,359.

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In the first eight months of the year, consumer prices rose 32.3%. By the end of the year, the Argentine government projects, inflation could reach a 45.1% high.

Also, as part of the measures, Argentina announced on Wednesday (22) that it will increase the minimum wage base on which income tax is paid in an attempt to improve the purchasing power of workers.

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Workers who receive a gross monthly salary of up to ARS 175,000 ($ 1,776) will be tax-free. In addition, the complementary annual wage will also not be taxed. Until now, the floor on which the tax was paid was ARS 150,000 ($1,522.5).

(Translated and co-written by LABS)

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