Wages grew above inflation in May, according to INDEC: how much did they increase?

In May, wages rose 3%, doubling the monthly inflation rate of 1.5%, according to official data from INDEC . According to official statistics, incomes rose 65.7% year-over-year, while they have risen 17.2% since December.

The monthly growth was due to increases of 2% in the registered private sector, 3.3% in the public sector, and 5.6% in the unregistered private sector . The 3.3% average increase in the public sector was influenced by the 3.9% increase in state salaries in the provinces.

In contrast, state-owned companies that depend on the nation saw an adjustment of only 1.5%.

wages

Indec

Wages in the registered sector increased by 2 percent, representing a cumulative increase of 52.5% year-over-year and an increase of 11.8% so far this year. Meanwhile, in the public sector, the increase in May was 3.3%, representing a year-over-year increase of 51.3%, and a 15% increase so far this year.

Within this framework, economist Daniel Schteingart determined the evolution of the purchasing power of wages since November 2023. He said that the decline in working hours, coupled with the wage freeze, explains the historic drop in the SIPA.

According to this specialist, the registered private sector is experiencing a loss of -0.7%, and the public sector a drop of -14%. Furthermore, salaries are still 5.5% below those of 2023.

"The May data confirm the procyclical nature of effective wages (SIPA) and the importance of hours worked," explained CP Consultora.

SIPA is the Argentine Integrated Pension System, the public system that manages the pension contribution funds of workers in both the public and private sectors.