In Argentina the mens I know retire at age 65 and women at 65. That is the only certainty, then it is complex learn how retirement is calculated that they will receive when they leave the activity.
Are several the factors that intervene in how retirement is calculated in Argentina. Especially in those cases in which the collective labor agreements establish particularities of their field.
In the following article we show you How is retirement calculated in Argentina? and what do you have to take into account to know how much will you earn when you retire from your job.
How is retirement calculated in Argentina 2022?
In addition to meeting the requirement of having 60 or 65 years of age as appropriate, a worker in Argentina has the right to retire if he has 30 years of contributions to the social security system.
That means that To determine how a particular person’s retirement is calculated, you first need to know if you meet these two requirements or not. If you do not comply with them, you will have to wait for one of the frequent moratoriums that are opened in Argentina for those who do not have the corresponding years of contributions but do have the age.
How the retirement that a worker will receive in Argentina is calculated when he retires from the activity
For those who meet the requirements, the answer to how retirement is calculated in Argentina is very simple: corresponds a percentage of the average gross salary of the last 10 years, plus a 1% increase for each year of contributions that exceed the minimum 30 years (with a maximum limit of 45 years)
I mean, that first retirement calculation When a person retires, they do not take into account the salaries they received in their 30 years or more of activity, but rather the account is made on the wages received in the last 10 years in which contributions were made to the social security system.
It should also be taken into account that some collective agreements establish different and higher percentages -never less than what is established by law- for the calculation of retirement. In many activities, the payment of salaries starts at the mobile 82% of the salary.
However, now that the different requirements for the retirement process are understood, understanding how it is calculated is easy.
I know add up to 120 salaries (that is, the assets of the last 10 years with contributions and without taking into account the complementary annual salary or bonus) and divide it by 120 to obtain a average. to that result 1% is added for each year extra service over the 30 mandatory (up to 45).
The number resulting from that account is the retirement calculation of a person in Argentina, and approximately the account will give 45% of the salary that the person had in activity, unless the collective agreement of the same indicates otherwise.
How much does a retiree with 30 years of contributions earn in 2022?
Retirement calculation: how much does a retiree with 30 years of contributions earn in 2022?
How much does a retiree earn with 30 years of contributions to Social Security, as we have already seen, depends on the blank wages you have recorded in the last 10 years of activity.
To have an idea, at the time of closing this article, the minimum retirement in Argentina it is 60,124 pesos per month, and the maximum is 337,289 pesos per month in gross. It is within this range that the retirement calculation of a worker or worker is made when they retire.
The retirement of a person with 30 years of contributions consists of three parts:
- Universal Basic Benefit: fixed sum that is updated quarterly and that is obtained from the calculation that we mentioned before.
- Compensatory benefit (contributions made before 06/30/94): It is calculated by multiplying 1.5% by the number of years of contributions prior to June 1994. The resulting percentage is the one that will be applied to the average salary to obtain the value of the compensatory benefit.
- Additional benefit for permanence (contributions after 06/30/1994): It is calculated the same as the compensatory benefit but with the years of contributions after the indicated date.
How can a worker know how much he will have to receive retirement: the calculation is simple
The compensatory benefit plus the permanence benefit would result in the 45% of the average salary of the last 10 years. To this is added the Universal Basic Benefit.
How much will I earn when I retire in Argentina?
As we already mentioned, a person can calculate how much his retirement will be in Argentina if he knows certain data: the average gross salary of the last 10 years of “blank” activity, the percentage of your salary with which retirement is calculated according to the collective agreement of its activity, etc.
In that case, just follow the steps indicated in this article. First take out the average of the last 120 salaries -without taking into account the Christmas bonus- and to that figure add 1% more for each year of social security contributions above the mandatory 30 years. To this is added the Universal Basic Benefit.
All this except that in the collective agreement of the activity made by the person during his working years enter a higher percentage for the retirement calculation than that indicated by law. In that case, when calculating the retirement, that percentage is used and not the average.
In addition, the retirement calculation is also different for people who do not meet the 30-year contribution requirement to the Social Security System but still have access to a benefit through a moratorium. Generally in these cases, the worker or worker manages to obtain a minimum retirement.
In this way it is very easy to learn how retirement is calculated. But it is an account that cannot be done in any case before knowing the salary received in the last 10 years of activity.
