Argentine private wages fall below pre-Milei levels, data shows

Registered private sector wages in Argentina have fallen below their level prior to President Javier Milei's administration, according to data from the Integrated Social Security System (SIPA). In June, the average real remuneration was 0.6% lower than in November 2023, ending a 20-month streak of wages remaining above that benchmark.

The decline has been particularly sharp in certain collective bargaining agreements. Sectors such as textiles, metallurgy, commerce, and footwear experienced year-on-year purchasing power losses exceeding 10%. This downturn followed two consecutive monthly decreases in real wages, even as inflation began to slow.

In June, the purchasing power of the average registered private sector wage fell by 0.9% month-on-month, after a 2.9% contraction in May. This occurred while the consumer price index (CPI) decreased from 2.6% in April to 2.1% in May and 1.9% in June, before accelerating again to 2.1% in July.

The government had favored the SIPA data, which includes bonuses and other additional payments beyond base salaries, believing it better reflected actual earnings. This approach aligned with the administration's view on "dynamic wages" and labor reform. However, even this indicator now shows a decline compared to the start of Milei's term. The National Institute of Statistics and Censuses (Indec) wage index had previously shown registered private sector wages 3.6% below the start of the administration by May.