Argentina has the second lowest minimum wage in South America

With the exception of the case of Venezuela, Argentina has the lowest living and mobile minimum wage in South America. In addition, it is one of the lowest in the region. According to the consultant’s latest survey Target market, the local minimum wage, after the gradual increase from April, is equivalent to US $ 151 at the parallel exchange rate.

“Argentina today has the second lowest living and mobile minimum wage in Latin America,” said consultancy director Damián Di Pace, based on a comparison with Mexico and eight countries in the world. ‘South America. “The other aspect of this situation is that, compared to the higher wages in other Latin American countries, the pandemic has been overcome. goods and services marketed in Argentina measured in dollars are very cheap for foreigners“, he detailed.

The living and mobile minimum wage and its meaning in the inflationary context

If we take a few major countries for comparison, Argentina’s minimum credit is 27% lower than Brazil, 29.8% lower than Mexico, 64.3% lower than Uruguay, and 65.7% lower than Chile. For example, to buy a Burger, in Venezuela, 960 hours of work are required, measured by their living and mobile minimum wage, in Argentina 4 hours 36 minutes while at the other extreme in Uruguay it takes 2 hours 43 minutes and in Chile 2 hours 13 minutes.

The other cases provided by the cabinet are: beer, soda and coffee. In the first, it was stated that “In Venezuela, it takes 602 hours and 24 minutes, in Chile 2 hours 16 minutes, in Argentina 1 hour 53 minutes while at the other extreme in Ecuador it takes 1 hour 12 minutes and in Colombia 1 hour “. While for sodas” in Venezuela it takes 549 hours and 36 minutes, in Argentina 1 hour 29 minutes while at the other extreme in Peru it takes 37 minutes and in Ecuador 29 minutes “.

Finally, in the case of the purchase of a coffee, in Venezuela 516 hours are necessary, in Mexico 2 hours 25 minutes, in Peru 2 hours 4 minutes and in the Argentina 1 hour 59 minutes.

Arroyo on increasing the minimum wage: “It is not enough but, without a doubt, it is progress”

the the low level of Argentine wages measured in dollars is one of the consequences of the devaluation process started in the second quarter of 2018, which deteriorated income in pesos, but also shows a noticeable drop in purchasing power, while the price of popular consumer products has not seen a similar decline.

The study highlights, as a positive aspect, that this situation “opens an opportunity for the arrival of tourists with high consumption in the Argentinian market“, he said, while also warning that” it will be necessary to assess whether the delay in exchange results in a dilution of this advantage over time “.

rm / ds