2024-09-03 23:00:00
A private survey shows that in the first half of this year, Private sector formal salary they have adjustments 14 percentage points higher than the inflation rate of the same period. Meanwhile, only one in 10 companies has an incremental budget for 2025.
This data comes from the monthly Salary Growth Trends in Argentina (TISA) survey conducted by Mercer, a consulting firm specializing in human resources. 501 companies are operating in Argentina.
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Salaries: How to adjust in the first months of 2024
According to the latest TISA survey, Argentinian companies “continue to reduce their budgets for salary increases, reflecting a slowdown in inflation forecasts” from a peak of 25.5% in December 2023.
In this sense, the findings indicate that the annual budget for salary increases in the private and formal markets for the current year is located 154%, and by 2025, the value will drop even more, reaching 65%. At the same time, they calculated Wages exceeded inflation between January and July: 101% vs 87%.
“Companies use a variety of criteria to define salary increases. 57% of companies consider a combination of factors when deciding on salary increases; 16% fully shifted inflation (100%). The other 16% is based solely on market conditions, 7% applies what is stipulated in the collective bargaining agreement (CCT) and 5% partially transfers inflation,” Mercer’s analysis said.
About how to apply payroll updates, 87% of respondents apply uniformly to the entire workforcewhile 13% chose selective adjustments, focusing on levels, key talents or specific areas.
Salary Adjustments: Expectations to 2025
Regarding the outlook for inflation, forecasts fell sharply, According to the latest measurements from Latin Focus, this proportion will rise to 142% by 2024. “The reduction in inflation expectations directly affects the reduction in salary increase budgets in the next few years,” the consultancy said.
In fact, predicted growth salary In the third and fourth quarters of this year, there was a slight decrease compared with the July survey. Only 15% of companies have adopted strategies to ensure annual growth exceeds inflationwhile 31% are evaluating this possibility. The remaining 54% do not consider this roadmap in their future plans.
“By 2025, Only 9% of companies have a growth budget, compared with 65%. The most common option remains to grant 6 adjustments per year”, highlights the study. In terms of the dispersion of salary updates, the survey showed that the gap between the highest and lowest wages has narrowed, from 59 percentage points to 40 percentage points
“2024 brings a different dynamic to the organization. For the first time in a long time, we are facing a situation like this: Pay increases to date and expected through December exceed inflation. This means that purchasing power is partially restored. However, significant losses incurred in recent years are still far from being compensated.
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