Being a worker with children seems to be reason enough to be part of “the caste” according to Javier Milei. Using the powers of the decree published as soon as he took office, the executive branch divided almost in half the maximum income that employees can have to be able to receive family allowances. The limit established at the individual level went from $1,980,000 to $1,077,403 and the family limit was reduced from $3,960,000 to $2,154,806.

With inflation at very high levels, hundreds of thousands of registered workers (both in the public and private sectors) will lose components of their salary that helped them support their families. A new attack to continue liquefying the expenses of the State and businessmen, at the expense of those who are forced to leave their lives in offices, shops or factories. As the months go by, the deterioration will increase since the retirement mobility index will be the criterion that will be applied to update both the allocations and the income limits to receive them. With prices rising well above salaries, family allowances will fall along with pensions that have been the axis of Caputo and Milei’s adjustment.

In the resolution published in the Official Gazette they maintain “That the Social Security System is an indispensable tool for the redistribution of resources and its modification processes are a fundamental tool to ensure that coverage reaches the population for which they have been designed.” public policies, updating decisions to the prevailing reality and taking into consideration the sustainability of the regime.” That “reality” and “sustainability” are those imposed by the Government’s policy aimed at paying the fraudulent foreign debt, regardless of the serious consequences that state workers are already suffering (such as the teachers who carried out a major strike this Monday), the retirees who will lose between 20 and 40% of their income in March or the students who see their courses in universities and tertiaries throughout the country in jeopardy.

Family allowances are received by registered workers who have children under 18 years of age, as well as annual school aid. The now lowered limit also plays to define the collection of benefits for birth, adoption, marriage and prenatal benefits. The allowances are decreasing as the salary step rises, always within the planned ceiling.

With the increase in retirements expected for next month by 27.18%, the child benefit benefit for registered workers will go from about $26,000 to $5,526. Let us keep in mind that these “allocations” are at most a palliative; today child poverty affects more than 60% of boys and girls (according to the latest estimates from the UCA).

The measure is part of the accelerated fiscal adjustment plan underway, one of the most brutal in the country’s history. According to the latest report from the Congressional Budget Office, in January the most affected items were social programs (-59.6% y/y), retirements and pensions (-32.5% y/y), personnel expenses ( -18.0% y/y), family allowances (-17.7% y/y), transfers to universities (-16.5% y/y) and current transfers to provinces (-53.3% y/y ).

The forceful measures carried out by different groups of workers can be a first step to confront Milei’s war plan and economic power against workers, retirees and poor people. It is urgent to prevent the social crisis from continuing to deepen and only a plan of struggle called together by the union centers, social organizations and neighborhood assemblies can defeat the Government’s plans.


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