The pension assets of the system managed by Anses will have an 11% readjustment in May. This will be because the decree of necessity and urgency (DNU) 274, referring to retirements, established that in that month the income will have an increase of a percentage equivalent to the variation in the Consumer Price Index (CPI) for March, that is, an increase equal to inflation. And Indec reported today that the index for the third month of the year was 11%.
Thus, heThe minimum retirement will go from $171,283.31 to an amount of around $190,124, while The maximum will rise from $1,152,574.47 to $1,279,358. The numbers mentioned are raw and approximate values; The exact figures will depend on the decimals of the index that is finally used.
The 11% recomposition will be applied to the value of this month’s income, which, in turn, They include an increase of 27.4% compared to March values. Between March, April and May, The accumulated increase will be 79.85%. That is the readjustment, strictly speaking, accumulated since the beginning of the year, since in January and February there was no improvement. In the first three months inflation was 51.6%, according to the Indec report released today; In March, benefits received their first increase in the year and in that month retirees were able to buy with their income, taking the Indec CPI as a reference. 16% less than what they had been able to acquire last December with what they received at that time (in February, the loss against the last month of 2023 had climbed to 26.8%).
The increase granted in March it was 27.18%, because that was the result of the mobility formula in force since 2021, which the Government now seeks to leave behind. For the current month of April, an increase of 27.4% was established by DNU, an index that results from accumulating an “extraordinary increase” (as the decree calls it) of 12.5% and the percentage of variation in the CPI for February, which was 13.2%. And in May, as stated, it will correspond to 11%.
Although the percentage of the increase can already be known, It is not known what will happen to the bonds, in the case of those who charge them. For the current month, the first with an inflation update of the salaries themselves, The Government decided to maintain the amount up to $70,0000, after in March it had increased it by a percentage very similar to the increase in mobility income. If it is decided to continue with the same amount, the reinforcement will continue to be liquefied. And the effective increase for those who earn the minimum or a little more will not be 11%, but from a lower level.
After years of loss of purchasing power with the validity of two mobility formulas and with discretionary decisions taken in 2020 by the government of Alberto Fernández, DNU 274, of last March, establishes a new modality for updating retirements and other social benefits. The decree provides for the use of the CPI as a reference value to increase salaries monthly, replacing the mobility formula of Law 27,609, which contemplates quarterly increases, based on the variation in salaries and collections, and which has a cap that in 2023 strongly harmed retirees.
This new modality of readjustments, as established, will take effect from July. But the decree also includes provisions for a period of transition or “splice”, which will run between April and June. For that quarter, which is the current one, it was established that there will be monthly updates by CPI, in addition to the already mentioned extra increase in April. Specifically, it was decided to take as reference February inflation for the April increase, March inflation for the May readjustment, and April inflation for the June increase.
In the sixth month of the year and according to the decree, the accumulated increase between April and June will be compared with the result of the formula of law 27,609. If a higher percentage arises from this calculation, the difference will be paid to retirees. If the index, on the other hand, is lower, nothing will be modified and the given increases will be incorporated into the monthly salaries.
Although the new type of increases slows down the loss of pensions in the face of rising prices, the truth is that in recent times a very strong drop has accumulated. In the 12-month period ending in February, the real value of income fell 29%, 47% or 44%, depending on the situation regarding the bonuses: if they were received throughout the period considered (between March 2023 and last February), if they were collected for a few months and then no longer, or if there was never access to them. Between December 2019 and that month of 2023, the accumulated deterioration was between 32.4% and 44.6%.