Minimum Living Wage: How much and when does it increase?
Advertisements
In January 2023, Argentina implemented a new increase in the Minimum Living and Mobile Salary (SMVM), also updating the February and March values.
This salary determines the minimum remuneration for employees and its updating. has an impact on certain social benefits.
What is the value of the Minimum Living and Mobile Wage?
Currently, the Minimum Living and Mobile Wage (SMVM) in Argentina it is $65.427, which translates into a rate per working day of $327.14.
Although the last adjustment was made in January 2023, the country's economic situation led to the establishment of a minimum wage that would apply from December to March.
Advertisements
However, both employees and employers are free to negotiate higher figures if they so wish.
It is relevant to mention that the SMVM is aimed at those workers who are not under a collective agreement.
Impact on benefits paid by ANSES
With the increase in the minimum wage, the benefits paid by the National Social Security Administration are automatically modified.
This is because some requirements and values come with the minimum wage; for example, to receive Potenciar Trabajo, the beneficiary cannot have a salary greater than the Minimum Living and Mobile Wage.
So, with the increase in the salary floor, more people can be covered by the program.
Apart from that, the value of the benefit also increases, since equivalent to 50% of the SMVM.
Therefore, it's important to pay attention to the rules of the program you participate in to find out if you qualify or if your benefit has been adjusted.
Learn about the government-paid benefits below that can supplement the income of families earning up to the minimum living wage or those without any formal income.
1. Empower Work
Potenciar Trabajo is a social program promoted by the Argentine government. Its objective is to contribute to business improvement, promote social inclusion in the labor market, and stimulate the creation of new opportunities in the productive sector.
To achieve this, it involves developing socio-productive, socio-labor, socio-community, and educational projects.
The Potenciar Trabajo fee is equivalent to 50% of the SMVM (Ministry of Labor), and among the requirements to participate, the beneficiary cannot have a salary higher than the minimum wage in Argentina.
Additionally, you must not own more than 2 properties or 2 cars.
2. Universal Allowance for Son or Daughter (AUH)
This benefit is paid monthly to each child under 18 years of age when their guardians are unemployed, have informal jobs, or are domestic workers.
For people with disabilities, there is no age limit for receiving the monthly amount.
However, it is necessary to prove the status of a person with a disability.
With it, beneficiaries receive assistance for health, food, and education, the main areas affected by social inequality.
The benefit may be collected by only one guardian of the minor, and may be:
● One of the parents;
● Tutor;
● guardian of the disabled person;
● Relative with blood ties up to the third degree.
Regarding payment, ANSES pays 80% monthly, and the remaining 20% is paid according to certain provisions.
If the determinations are not met and proven, the 20% benefit is lost.
Among the requirements to collect the AUH we find, for example:
● Parents must be unemployed, unregistered workers, or in domestic service.
● Children must not work, be emancipated, or receive any of the benefits provided for in the family allowance law.
● Children and parents must be Argentine and reside in the country.
● Foreigners or nationals must have resided in the country for at least 2 years.
● Health exams and vaccinations for children up to 4 years old must be up to date.
● Children aged 5 to 18 must participate in health checks and prove they attend a public school.
To learn more about the AUH, visit argentina.gob.ar.
4. Family Allowance for Son and Daughter
With this program, the government aims to guarantee the rights to education and health for Argentine children.
Within the group of people who may have the right, we find:
● Employees;
● Pension and retirement pension holders;
● Seasonal and rural workers;
● People who receive payment through a Workers' Compensation Insurance Company;
● Self-employed workers;
● People who receive job seeker's allowance;
● People who receive a Non-Contributory Disability Pension or Transplant Subsidy.
To apply, those responsible must have updated personal and family group data in the ANSES.
In addition, children must be under 18 years of age, single, and residents of the country.
In the case of children with disabilities, there is no age limit, and they can be single, widowed, legally divorced, and reside in Argentina.
Authorization for current collection issued by ANSES is also required.
Conclusion
The minimum living wage may not cover the needs of many families, so it is important to seek alternatives to supplement family income.
One advantage is that there are some government social benefits for low-income families—those with no income or those earning up to the Argentine minimum wage.
