The Argentine government, through the Ministry of Labor, has defined a new mechanism for increasing the Minimum Vital and Mobile Salary (SMVM). Starting in November 2025, the SMVM will begin to increase consecutively each month, reaching a level of 376,600 pesos by August 2026. The initial level for full-time workers in November 2025 will be 328,400 pesos. In the case of reduced hours, the payment amounts will be applied proportionally. The mechanism for calculating unemployment benefits was also redefined. It will now be calculated as 75% of the highest net monthly salary the worker has received during the last six months of their employment relationship. These new changes will affect employees governed by the Labor Contract Law, agricultural personnel, national public administration, and state employer organizations. It should be noted that no consensus was reached at the last Salary Council meeting. Unions had proposed more significant increases, while businesses proposed a monthly increase of 4,000 pesos. According to the research center CIFRA, under the Milei government, the purchasing power of the SMVM has fallen by more than 35%, and today a family needs almost four minimum wages not to be considered poor. Currently, the real value of the SMVM is lower than in the 1990s and represents less than one-fifth of the average salary in the country.
