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[BUSINESS] · Argentina · 69 sources

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Argentina government promotes 1,070,000 peso minimum wage via collective bargaining

The Argentine government, through the National Secretariat of Labor led by Julio Cordero, is promoting a strategy to establish a guaranteed minimum wage of approximately 1,070,000 pesos for August 2026. This initiative aims to improve the purchasing power of formal workers through collective bargaining agreements rather than a unilateral increase in the legal minimum wage (Salario Mínimo, Vital y Móvil), which currently stands at 376,600 pesos.

Under this plan, unions and business chambers must negotiate these floors within their respective sectors, which the government will then ratify. The proposal specifically targets sectors with lower wages, such as Maestranza, UOCRA, and Sanidad. Officials state that this approach is intended to boost consumption and support wage recovery without triggering significant inflation or additional fiscal costs.

This move comes amid a challenging economic landscape. A report from the University of Buenos Aires indicates that Argentina has lost 241,000 formal private-sector jobs since November 2023, representing a 3.8% decline in formal occupation. Additionally, the purchasing power of the minimum wage has dropped by 40.5% since late 2023. The CGT labor federation has expressed caution regarding the proposal, emphasizing the need for free negotiations.

Entities

Argentina · CGT · Centro de Economía Política Argentina · IIEP UBA-CONICET · Instituto Argentina Grande · Javier Milei · Julio Cordero · Secretaría de Trabajo · Secretaría de Trabajo de la Nación · Secretaría de Trabajo, Empleo y Seguridad Social · Universidad de Buenos Aires · University of Buenos Aires

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