As of October 1, 2024, Argentina has revised its national minimum wage. Under National Employment Act No. 20.744, the minimum wage applies universally to all employees over 18 years of age.
The New Minimum Wage Rates for 2024 in Argentina
The recent wage increase raises the national minimum wage to 271,571.22 Argentine Peso (USD 274.66) per month. Prior to this, it was ARS 268,056 (USD 271.11). This adjustment is determined by the National Council for Employment, Productivity, and the Adjustable Minimum Living Wage (NCEPAMLW).
Most workers’ wages in Argentina, however, are determined by collective bargaining agreements within various industries. This means that actual pay rates can vary based on industry-specific standards, worker classifications, and the terms of employment. As such, while the national minimum wage sets a foundational baseline, many workers receive wages higher than the statutory minimum depending on their roles and sector.
Key Factors Behind the Wage Adjustment
Argentina’s wage-setting framework considers several factors:
Worker and Family Needs: Ensuring that wages meet the basic living standards required to support workers and their families.
Economic Conditions: The country’s current socio-economic environment, including inflation and living costs.
National Goals: The overarching goals of the National Council align minimum wage decisions with Argentina’s long-term labor and economic strategies.
Enforcement and Penalties for Non-Compliance
To ensure employers comply with minimum wage laws, the Federal Labor Pact enforces a range of penalties. Penalties vary based on the severity of the infraction:
Minor Infractions: Fines range from 25% to 150% of the minimum wage per affected worker.
Serious Infractions: Penalties increase to 30%-200%.
Very Serious Infractions: Fines may range from 50% to as much as 2000% of the minimum wage.
Payroll Frequency and Payment Structures in Argentina
Payroll frequency differs across countries and regions. Payroll frequency in Lithuania requires employers to pay monthly salaries at least twice a month, though employees can request a monthly payment schedule instead. In Argentina, payroll frequency is agreed upon between employers and employees and may vary based on the nature of the work:
Monthly Staff: Paid at the end of each month.
Hourly and Daily Workers: Paid weekly or biweekly.
Piece-Rate Workers: Compensated weekly or biweekly based on completed work, with a proportionate payment for work still in progress.
Implications for Employers
Employers need to re-evaluate payroll expenses and ensure that systems accurately reflect the new statutory rates.
Employers in sectors bound by collective bargaining agreements may need to adjust wages according to any concurrent changes in industry standards.