What will be the amount of pensions in September and how will they deal with inflation?

In September, all pensions and pensions in the national pension system will increase by 12.22%. Thus, the minimum credit will be $ 12,937.22 and the maximum will be $ 94,780.42. The recomposition will be carried out in accordance with the provisions of the Mobility Act, which includes a formula that includes inflation and the evolution of a group of wages. For the third nominal increase in the year (the previous two were in March and June), the formula gives an adjustment of 12.22%, as
LA NACION had planned and as the government will formalize tomorrow, through a resolution of the National Social Security Administration (ANSES) that will be published in the Official Journal, according to sources from the agency .

The measure also affects the amount of family allowances received by workers in the formal system of work and includes non-contributory pensions and the universal old-age pension (PUAM), which is equivalent to 80% of the minimum credit (with which is a monthly income of $ 10,349.78). The download will not apply in the case of the Universal Child Benefit (AUH), however, because in this case
the government had planned in March the principle increases planned for this year (a 46% increase was applied for this third month of the year).

With the September readjustment, the badet will accumulate an increase of 38.97% during the first nine months of the year. The increase will be 49.78% if the figures are compared to those of a year ago. According to possible comparisons so far, pensions have accumulated in June a 23.84% recomposition so far this year, against inflation of 22.4% (which would give a recovery of 1.2%). purchasing power over the period); at the same time, the indices show a nominal improvement of 42.39% between June 2018 and the same month of 2019, during which the inflation was 55.8% (which determines a loss of power of purchase of 8.6%).

In 2018, pension badets and other income whose increases are defined by the Mobility Act experienced a 13% decrease in their purchasing power. This year, the end-to-end measure would reverse this trend: the inflation expected by economists for the whole of 2019 is about 40%, according to projections released by the Market Expectations Survey (REM ) of the Central Bank. The pensions, meanwhile, will have a cumulative recomposition (between the four year – round increases) of at least 50%, which is already possible to estimate given the rates of increase. inflation and earnings for part of the second quarter of the year, which are the variables that will determine how much will increase in the month of December.

Along with the increase in wages, the pension contributions of the self-employed and higher-income earners will also increase by 12.22% in September. The salary ceiling for the calculation of personal contributions to social security will in fact be increased to $ 146,246.86.

The mobility formula applied since 2018 takes into account 70% of accumulated inflation over a quarter plus 30% of the variation recorded by the average taxable earnings of stable workers (Ripte). The observed data has a lag of six months (for example, the September adjustment is determined based on what happened between January and March). And so, in a rising inflation scenario, it results in a loss of purchasing power from those who are earning income. On the other hand, with price indices that tend to dampen their level of increase, there is an improvement in income measured in real terms.