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Economy Employment of registered domestic staff is at the lowest level in the last seven years - Infobae

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Employment of registered domestic staff is at the lowest level in the last seven years - Infobae​


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May 08, 2024

More than 40 thousand registered jobs were lost in that sector from January 2020 to today. What are the consequences on the level of income


By Mariano Zalazar


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There are 456,600 registered workers in the domestic service sector

Historically, domestic service has always been one of the most informal sectors of the national economy, so it is very difficult to know exactly how many people are working in that field of work. What is clear is that there are fewer and fewer employees who are blank.


According to the most recent data published by the National Ministry of Labor , in Argentina there are 458,766 private household workers who are registered (data as of January 2024). Although it seems like a high number, it is actually the lowest value in the last seven years. To find a lower number you have to go back to December 2016, when there were 456,600 registered domestic service workers.


The maximum peak occurred in January 2020, when 500,379 formal employees were counted in private homes. From then on the numbers began to collapse, until reaching the 458,766 mentioned in the previous paragraph. Over the course of those four years, the number of registered workers decreased 8.31% (41,613 fewer people).


What happened to those 41 thousand people? There are several possibilities. They may have lost their job, they may have found another job or they may simply have become informal. The latter would not be something strange for most, taking into account the high level of black work that exists in the field. According to the Indec “income generation and labor input account” report, seven out of every ten people who work in domestic service do not have retirement contributions, that is, they are informal. In fact, it is the most informal sector there is.

The consequences​


The transition from formality to informality has multiple negative consequences. One of them, of course, is that they stop making retirement contributions, which causes problems for the future, if the 30 years of contributions are not completed. But perhaps what worries workers most today is not that, but the reduction in their income level.

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In the first two months, informal workers had half the salary adjustment than formal employees. (Illustrative Image Infobae)
What happens is that those who are registered are protected by the law and employers must respect the salary increases agreed upon jointly. This year, for example, increases of 20% in February, 15% in March and 11% in April were agreed for the formal sector, while those in the informal sector had to adjust to direct negotiations with employers.

In general terms, being in the informal sector is equivalent to having low salaries and updates below inflation rates. This is demonstrated by the latest data published by Indec on salaries. According to the organization, in the first two months of 2024, workers in the formal sector (average of all activities) had a salary adjustment of 36.9%, while informal employees received an average increase of 17.6%, less From the half.

Therefore, the loss of more than 41 thousand formal jobs in domestic service necessarily implies a reduction in the purchasing power of thousands of families.

How much will domestic employees earn per hour in May 2024​

The first category, which is for those who fulfill the role of supervisors , charges $2,867.50 per hour when it is without withdrawal. With withdrawal, the hourly charge is $2,617.50 . The next range, which includes those who perform specific tasks , charges $2,478.5 per hour with withdrawal and $2,727 without withdrawal. The third section is for landlords , therefore it is always without withdrawal: they charge $2,341 per hour.

The fourth category is for those who work in personal care . With retirement, per hour, they earn $2,341 and without retirement, the salary is $2,617.5 . The last level, for general tasks, charges $2,170.5 per hour, when it is with withdrawal. Without withdrawal, the hourly charge is $2,341 .

Additionally, there are additional amounts. For seniority, 1% corresponds to each year worked with the same employer, on the monthly salary. An additional 30% must also be paid per unfavorable area for personnel working in: La Pampa, Río Negro, Chubut, Neuquén, Santa Cruz, Tierra del Fuego, Antarctica and the South Atlantic Islands, or in the Patagones District of the Buenos Aires province.
 
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