They beat inflation in October, but are still low because of the downgrade in August

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Salarios formales: le ganaron a la inflación en octubre, pero siguen abajo por la devaluación de agosto

After strong losses in August and September, in October formal wages with Social Security contributions recovered on the ground and with an increase of 11.7%, according to RIPTE (Taxable Remuneration of Stable Workers) They beat inflation, which was 8.3% that month.

However, in the last 3 months with the devaluation of the official peso in mid-August, Inflation was 37.2%, and formal wages increased by 29.5%: they are 7.7 points less.

So discounted, that is with a spike in inflation in November and a new devaluation in December At a higher percentage than in August, inflation will take a bigger jump, and formal wages will fall further. And they will end the year with a new defeat, which will worsen what they have had in the last 8 years.

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In October, the gross salary (without Retirement and Health discounts) averaged $420,706.55. It has accumulated 116.66% this year compared to inflation of 120%.

Compared to the end of 2015, RIPTE accumulated a loss of 25%, where 20 points correspond to the previous Government and 5 points to the current Government.

These data take into account salaries paid by companies. The compensations applied in October – such as the refund of the proportional half bonus of the Income or the refund of VAT on debit card purchases or unpaid bonuses – do not affect the calculation of RIPTE, which only takes into account the taxable gross payment. Nor does the increase in the Profit salary floor to $1,980,000 with October salary have any effect. This means that the increases in the out-of-pocket salary due to the tax measures adopted by the State do not translate statistically into the salary scale that takes into account what the companies pay, regardless of the benefits of the State.

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However, the Ministry of Labor clarified that “RIPTE does not necessarily reflect the evolution of salaries in private registered employment,” (but it marks a trend) usually for 3 reasons:

• Salaries are equivalent to jobs with a seniority of 13 months or more. In other words, the wages of new jobs are not included.

• Considering the salary of the jobs in the private sector and the national, provincial and municipal public sector that transferred their pension funds to SIPA-ANSeS.

• It only quantifies the wages component of wages (taxable to the social security system).