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The Government made the new retirement mobility formula official: what will the next increases be like? - Infobae
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El Gobierno oficializó la nueva fórmula de movilidad jubilatoria: cómo serán los próximos incrementos
Fue publicado el DNU en el Boletín Oficial. El ministro de Economía, Luis Caputo, adelantó que los beneficiarios que perciben la mínima cobrarán 172.000 pesos, más el bono complementario
www.infobae.com
March 25, 2024
The DNU was published in the Official Gazette. The Minister of Economy, Luis Caputo, announced that the beneficiaries who receive the minimum will receive 172,000 pesos, plus the complementary bonus
The new mechanism to update pensions will be directly linked to the Consumer Price Index
With the possibility of reaching a successful outcome in Congress blocked, the National Government decided by decree to establish the new retirement mobility formula that will impact salaries only starting in July . For April , meanwhile, a 12.5% adjustment decided by the Government will be applied, plus advances not yet specified for the mobility corresponding to June that will take the minimum to 172,000 plus the bonus, which will mean that no one earns less than 204,445 pesos.
As they had anticipated from Casa Rosada, the update will be based on the Consumer Price Index. But the publication surprised by contradicting an official statement last Friday. In the end, the inflation adjustment will only arrive in the month of July. In the meantime, there will be a transition scheme.
This goes against what was published by the Office of the President of the Republic, which stated, on March 22, that "from April, Argentine retirees will receive monthly increases according to the Consumer Price Index."
https://www.infobae.com/economia/20...o-seran-los-aumentos-en-los-siguientes-meses/
The linear update due to inflation, then, will have to wait. But the transition is compensated with a series of adjustments determined by the decree. For April, there will be a percentage increase that will be 12.5%. They are two points above the initial proposal of the Minister of Economy, Luis Caputo , which remains, however, below the 20 percent that the opposition demanded.
The transition mechanism responds to the need to avoid lawsuits for accrued periods, official sources said. In itself, however, the immediate adjustment will be equivalent to that which would be applied for inflation, as explained by the minister himself.
“ In addition to the 30% increase that we gave last month, we now give the 13.2% of February, plus 12.5% recomposition, plus the bonus. Now the minimum will be $172,000 plus the bonus , a 64% recomposition,” Caputo had specified yesterday in television statements .
This adjustment will not be felt in the lowest salaries, which already had an increase in their pocket amounts due to the application of a $70,000 bonus. The minimum will remain for the second consecutive month at the $204,445 that was paid in March. Those who exceed that level of assets or those who, being below, feel the impact of the adjustment will receive increases.
“The assets will be updated monthly in accordance with the variations in the General Level of the National Consumer Price Index published by the NATIONAL INSTITUTE OF STATISTICS AND CENSUS (INDEC)” , it was established in Decree 274/2024 published this Monday in the Official Gazette . “In no case may the application of said index produce a decrease in the assets received by the beneficiary,” it was clarified.
According to the new formula, the Government exemplified: “In July 2024, the variation in the Consumer Price Index corresponding to May 2024 will be paid. In August, the variation corresponding to June will be paid, and so on.”
In addition to the extraordinary increase in April, an advance on mobility corresponding to the month of June of the same year will be paid in May; and in June an increase calculated in accordance with the guideline established in article 32 of Law No. 24,241. These increases “will be on account of the mobility to be paid in June 2024 according to the index that will be obtained according to the mobility formula in force on the date of issuance of this document. Once the percentage that arises from this is obtained, the percentage points will be deducted from the accumulated increases that the beneficiary would have received,” explained the Executive Branch. “In the event that these exceed the increase calculated according to the formula mentioned in the first paragraph of this article, the difference will not be deducted, which will be considered incorporated into the credit. If they were less than said increase, the resulting difference will be paid,” he added.
The Minister of Economy, Luis Caputo (REUTERS/Agustin Marcarian)
In the recitals, the Government questioned the current mobility formula: “It has produced disastrous results for the country's retirees and pensioners, who have suffered a notable loss of purchasing power.”
“The urgent need to modify the retirement formula in order to maintain the standard of living of older adults and prevent them from continuing to lose purchasing power and the imminent beginning of the month of April, the passage of which would make it difficult to properly combine formulas. “the exceptional circumstances that require the issuance of this decree,” he justified.
“The severity of the crisis faced by older adults means that they cannot wait until June of this year to see their salaries increased,” the Executive Branch stated through the decree signed by Javier Milei and the entire Cabinet of Ministers.
What will be the increase in April
The text specifies that for the month of April there will be “an extraordinary increase equivalent to TWELVE AND A HALF PERCENT (12.5%) on the benefits corresponding to the month of March 2024; and an advance of the mobility corresponding to the month of June 2024, calculated in accordance with the guideline established in article 32 of Law No. 24,241 according to the wording established in article 1 hereof, which will be applied to the result of the section preceding".Specialists consulted by Infobae could not specify the second point of this adjustment, but the Minister of Economy estimated that this will bring the minimum to $172,000 . That is, in addition to the 12.5%, an advance equivalent to 13.2% of February inflation would be applied.
Based on calculations by pension lawyer Adrián Tróccoli , and following the logic detailed yesterday by Caputo, Infobae arrived at the following figures for April salaries:
- The Universal Pension for Seniors ( PUAM ) should reach $136,972.87 in April, after having been at $107,556.63 in March.
- The minimum retirement will be $171,216.09 in April, from the $134,445.3 it was at this month.
- Finally, the maximum retirement (a concept that is quite judicialized, but which has its administrative existence) will reach $1,152,122.13 next month compared to the $904,689.54 that was paid in March.
How the 70,000 pesos bonus is applied
The decree that establishes the bonus establishes that with the 27.18% increase that was granted in March and the bonus of up to $70,000 , retirements and pensions with minimum salaries will be collecting $204,445 gross. The total is broken down into a minimum of $134,445 plus $70,000.As the bonus established by decree is applied on nominal amounts, the increase by today's DNU that changes the mobility formula moves the floor from which this extra allocation starts, but does not change the ceiling.
So, retirees who earn the minimum will receive the $171,216.09 of the new formula plus $33,228.91 as a bonus to reach a total of $204,445 , the same as they received in March.
Retirees who earn between $171,217 and $204,444 will also receive a bonus that takes their disbursement up to the limit of $204,445 .
Finally, the highest earners, who have earned more than $204,445 in March, will end up earning a 27.35% monthly increase .
What will be the increases in May and June?
The rule, on the other hand, also establishes similar increase mechanisms in May and June.“In May 2024, an advance of the mobility corresponding to the month of June of the same year, calculated in accordance with the guideline established in article 32 of Law No. 24,241 according to the wording established in article 1 hereof,” establishes the text.
“In June 2024, an increase, calculated in accordance with the guidelines established in article 32 of Law No. 24,241 according to the wording established in article 1 hereof,” he adds.
aviso_305089.pdf
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