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Argentina Wages Beat August Inflation as Recovery Remains Uneven

Public‑sector pay remains well below late‑2023 levels, highlighting an incomplete rebound.

Overview

  • INDEC reported the overall wage index rose 3.2% in August versus 1.9% inflation, with wages also outpacing prices year to date (+27.6% vs 19.5%) and year over year (+49.6% vs 33.6%).
  • Registered pay increased 2.4% in August, split between private sector at 2.2% and public sector at 2.8%, while the non‑registered series showed a 6% rise that INDEC reports with a five‑month lag.
  • Economists note private registered wages are roughly back to November 2023 levels as a reference point, whereas public‑sector salaries remain about 13–14% below that benchmark.
  • The government is weighing a labor reform that, according to media reports, would introduce a “dynamic salary” tied to merit and productivity and give company‑level agreements precedence over sectoral deals.
  • Private consultancies estimate October inflation accelerated to roughly 2.3–2.5%, led by food and regulated services, a pickup that could erode recent real wage gains if it persists; the official figure is due November 12.