The government unilaterally raised the minimum wage via a decree published on Friday in the Official Gazette. The decision comes after the Minimum Wage Council, a body made up of government, business chamber, and trade union representatives tasked with discussing the matter, failed to reach an agreement in late April.

The decree slated progressive increases between April and August. The first bump, set retroactively to April 1, raised the minimum wage from AR$271,571.2 (US$240 at the official rate) for an eight-hour per day and five-day per week job to AR$302,600 (US$267). Following monthly increases in May, June, and July, the final raise in August will take the wage to AR$322,000 (US$285). 

The increase the Milei administration determined was only half of what labor unions were asking for. Unions were demanding AR$644,165 (US$570) in April and AR$657,703 (US$582) in May, almost a 140% increase. Business entities were offering AR$301,500 (US$266) in April, AR$306,500 (US$271) in May, and AR$311,500 (US$275) in June, just a 1.3% increase.

According to the INDEC government statistics institute, the poverty line for a three-person household in April was AR$1,100,267 (US$973).

The Minimum Wage Council has never managed to reach an agreement ever since Milei became president in December 2023. The last time the minimum wage was increased was in December of last year, also by decree. Prior to that, raises were determined unilaterally in December 2023 and April 2024. 

Trade unions expressed their disappointment when council negotiations failed to reach an agreement last month. A General Confederation of Labor (CGT, by its Spanish initials) press release said that unions are “worried and alert about a national government that does not address demands, does not listen, nor talk.” They added that President Javier Milei’s administration is also carrying out “serious austerity measures” that workers are suffering from.

Hugo “Cachorro” Godoy, general secretary of the Argentine Workers’ Central branch CTA-A, stated at the time that their suggested minimum wage was AR$1,159,909 (US$1,026). 

“We have reiterated our call for the council to operate permanently and, among other things, establish a reference to meet the needs of constitutionally established rights in Argentina, which are being crushed by the miserable wages maintained by the government and employers,” he said.