Argentina finalizes state wage deal, impacting officials' salaries amid union dispute

Argentina's government has finalized a wage agreement for public sector employees, securing the backing of the dominant union UPCN but facing opposition from ATE. The deal provides a 6.64% salary increase from June to August, distributed in three installments, along with a 50,000 peso bonus in August. This agreement will also affect the salaries of national officials.

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In Argentina, during the first five months of 2026 the inflation accumulates 14.7%, while the Government expects it to continue on a downward path.

According to a January decree, wage increases approved in the national public administration's collective bargaining commission apply to ministers, secretaries, undersecretaries, and equivalent-ranking officials. However, the salaries of the President and Vice President remain frozen since the current administration took office. In May, the gross salary for the Chief of Staff and ministers was over 8 million pesos, while secretaries earned over 7.3 million pesos, and undersecretaries over 6.6 million pesos.

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In the era of Milei, public employees have lost 43% of their purchasing power in salaries with respect to inflation.

Despite the government's agreement with UPCN, the ATE union, led by Rodolfo Aguiar, has voiced strong dissent. Aguiar, currently in Russia, criticized the deal, stating that public employees have lost approximately 40% of their purchasing power due to inflation since the current administration began. ATE claims this figure is as high as 43% for public employees under the General Collective Bargaining Agreement and around 35% for those under the National Public Employment System (Sinep). The government, however, estimates the loss for Sinep workers at 32%.

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The impact of the wage agreement will also affect the salaries of national officials.