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Economy Minimum wage: with an eye on social spending, the government will raise it by decree after lack of agreement

Melody13

Member
President Javier Milei had ruled out setting a new minimum wage by decree, but in view of the failure of negotiations between unions and employers, the Secretary of Labor will establish it this week. This decision will have an impact on social programs such as Potenciar Trabajo. The amount is not yet defined, but it is expected to be lower than the claim of the labor unions. The increase in the minimum, vital and mobile salary has a fiscal impact and affects the amounts of programs such as Potenciar Trabajo, for which reason the Government seeks to cut expenses in this area. The CGT criticized the lack of social dialogue and accused the Government of avoiding an agreement. The determination of the new minimum wage is crucial for the financial balance of the public sector, in line with the government's fiscal adjustment goal. In January, the Government achieved a primary surplus driven by cuts in social spending, but further adjustment is still needed to reach zero deficit.

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