On May 29, 2023, the Chamber of Deputies approved the amendments made by the Senate and passed into law the bill that “Readjusts the amount of the minimum monthly income, increases the universe of beneficiaries of the family and maternity allowance, and extends the guaranteed minimum income and the temporary subsidy to micro, small and medium-sized companies”.
This project establishes, mainly, the following:
-As of May 1, 2023, the minimum monthly income for male and female workers over 18 and up to 65 years of age will be increased to $440.000.
-As from September 1, 2023, the minimum monthly income for male and female workers over 18 and up to 65 years of age shall be increased to $460.000.
-As from July 1, 2024, the minimum monthly income for male and female workers over 18 and up to 65 years of age will be increased to $500.000.
-In the event that the accumulated variation of the Consumer Price Index, determined and reported by the National Institute of Statistics exceeds 6% in a period of twelve months as of December 2023, the minimum monthly income will be increased in advance, as of January 1, 2024, to $470.000 for the above-mentioned workers.
Likewise, this bill adjusts the minimum monthly income for workers under 18 and over 65 years of age, raising it, as of May 1, 2023, to Ps. 328.230 pesos and the minimum monthly income for non-remunerative purposes, as of the same date, will increase to Ps. 283.619 pesos. Then, as from September 1, 2023, both concepts will be increased in the same proportion in which the amount of the minimum monthly income is increased, in accordance with the dates and amounts established above. For such purposes, no later than July 15, 2023, a supreme decree shall be issued through the Ministry of Finance, signed by the Minister of Labor and Social Welfare, establishing the values resulting from the above mentioned calculation.
Due to the above, once this law is enacted, the re-settlement of remunerations according to the new minimum monthly income (MMI) must be carried out from May 2023 onwards. This is of the utmost importance, since the adjustment caused by the recalculation has an effect on the social security contributions of workers remunerated according to the MMI and, if it is not made, it would generate a social security debt.
By April 2025 at the latest, the President of the Republic must send to the National Congress a bill proposing a new readjustment of the amount of the minimum monthly income, as well as of the family and maternity allowance, and of the family subsidy in order for it to become effective as from May 1, 2025.
On the other hand, and in order to provide support to micro, small and medium-sized companies to comply with the adjustment of the minimum monthly income, a subsidy was established to reach such amounts, which is activated in the event that the macroeconomic conditions of the country worsen, generating, as an immediate effect, an increase in the amounts that smaller companies will receive. It is worth mentioning that this subsidy will be in force until April 2025 and may be applied for, on a one-time basis, through the Internal Revenue Service’s website.
For more information on these topics, please contact our #azLabor group: