Buenos Aires, Argentina – Argentina’s government is set to raise the minimum wage and extend working holidays in an attempt to help the economy grow.
Argentina has been grappling with a prolonged recession in recent years, and inflation has been at its highest in years.
President Mauricio Macri is pushing ahead with the plan to increase the minimum salary to 50,000 pesos ($724) from the current $2,600.
The move comes after months of public outcry and opposition from unions.
“The government is going to do what is necessary to strengthen the competitiveness of the Argentine economy and the competitiveness in the country,” Economy Minister Fernando López said in an interview with local media.
“The minimum wage increase is part of this.
We are trying to improve the quality of life and raise incomes.”
The announcement is expected to be announced by late November, with Macri saying it would take effect at the end of next year.
The change is expected boost the economy by about 3 percent annually.
Macri is also expected to announce plans to raise tax revenue to compensate for the loss of foreign currency earnings.
Macris government is planning to impose a new minimum tax of 4 percent on all Argentines over the age of 30, which would be used to help pay for pensions and other social welfare programs.
It has already introduced a tax on foreign exchange to compensate.
The minimum wage will be raised to 50% of the average wage in order to fund the expansion of social welfare services.