On July 18, at 2:30 p.m., the Government will hold a virtual meeting for the Minimum, Vital and Mobile Salary Council (SMVM) to determine the value of the SMVM and unemployment benefits. The council is composed of representatives from employers and unions and has been tasked with setting minimum wage values for the past year. If no agreement is reached, the Government will make the final decision. The last SMVM value was set in May, which has raised questions about whether a new value will be set for July or if it will be retroactive to June.
Inflation in May reached an unprecedented high of 71.9%, resulting in a 12.7% deterioration in purchasing power. This inflation rate has had a significant impact on workers’ wages, particularly those earning less than the minimum wage. Retirees with 30 or more years of contributions are entitled to 82% of the SMVM, which ensures they receive a decent standard of living in their retirement years.
Due to layoffs caused by decreased activity in the private sector, the number of workers collecting unemployment benefits has increased significantly in recent months. As such, it is crucial that the SMVM sets fair minimum wage values that take into account both inflation and economic conditions. The Unemployment Benefit is set at 75% of the worker’s previous normal monthly remuneration, with a minimum floor set at 50% of the current SMVM and a maximum ceiling of 100% of the SMVM. By ensuring that workers receive adequate compensation for their lost income during periods of unemployment, we can help alleviate some of the financial stress caused by these difficult times.
The Government should ensure that this meeting results in fair decisions that take into account both workers’ rights and economic conditions. Failure to do so could result in further hardships for already vulnerable populations, including low-wage workers and retirees.
In January, following failed negotiations between business representatives and union leaders,
