On Monday this week, the government New composite index is used to calculate Starting salary for those retiring in December 2025.
This measure, approved by 29/2025 Clause The Undersecretary of Social Security of the Ministry of Human Capital will establish a mechanism for dependent workers to update the monthly remuneration they receive if they terminate their work as of November 30 or claim pension benefits as of December 1 of this year.
this Quarterly updates The composite index represents a fundamental element of Argentina’s pension system, as it allows a more accurate determination of the initial retirement assets of recipients of retirement benefits. This mechanism was originally Article 4 of Law 27,609superseding section 2 of Act 26,417; Faithfully reflecting the evolution of salary What workers have experienced during their working lives.
Retirement: How the new composite index works
The composite index is created by amalgamating two main indicators of Argentina’s pension system.
- on the one hand, RIPTE is consideredThis is the average taxable remuneration of stable workers, an indicator prepared by the Ministry of Social Security and reflecting the development of registered salaries in the country.
- on the other hand, Incorporates the Mobility Index as provided in subsection b of Article 5, Paragraph 1 of Law 27,260. and its modifications. This combination allows the calculation of initial wealth to take into account both the development of real wages and other relevant economic factors.
The implementation of this system is regulated by Decree 104/2021, which provides for: The Department of Social Security was required to compile and publish a composite index every quarter. along with the methodology used in its preparation. In accordance with this regulation, the then Ministry of Social Security issued Resolution 3/2021, approving the specific methodology for creating the index and establishing its value for updating the monthly remuneration.
The National Social Security Policy Directorate, relying on the Under-Secretary of Social Security in the Labor, Employment and Social Security Secretariat of the Ministry of Human Capital, was responsible for the development of the currently applied composite index. This calculation was carried out in strict accordance with the methodology established in Annex I of Resolution 3/2021, ensuring transparency and consistency of the process.
The importance of this index lies in its function in retirement calculations. When a worker retires, their starting salary is not simply calculated by averaging the last salary received, but the best year of the person’s career is taken into account and updated using this composite index. In this way, past salaries are adjusted to reflect current real values and prevent pension benefit calculations from being distorted by inflation or other economic factors.
The established procedure means that for workers who cease to be active as of November 30, 2025, or who claim severance pay as of December 1, 2025, their past compensation will be updated using this new quarterly indicator. This allows pension systems to maintain equity, ensuring that people who retire at different times receive equal treatment in terms of the purchasing power of their initial assets.
The regulations were signed by Social Security Undersecretary Alexandra Biasutti and came into force immediately after being published in the Official Gazette. According to the official document, the index is detailed in the annex IF-2025-119771134-APN-DNPSS#MCH, which is an integral part of the regulations, and was created according to the methodology that has been in force since 2021.
The regular update of this composite index is part of a retirement liquidity system aimed at protecting the purchasing power of future beneficiaries of Argentina’s pension system. By combining various economic and salary indicators, this mechanism attempts to obtain a more complete picture of the actual development of workers’ income and prevents temporary factors from unduly influencing the calculation of retirement benefits.
This measure is issued in exercise of the powers conferred by Ministerial Law No. 22,520 in accordance with the provisions mandated by Decree No. 438 of 1992 and its amendments and supplementary regulations and Annex II of Decree No. 50 of 19 December 2019 and its amendments. Furthermore, this is based on the provisions of Article 6 of Decree 104/2021 of the then Ministry of Social Security and Annex I of Resolution 3/2021.
With this publication, the government guarantees predictability and transparency in the pension system, allowing workers about to retire to know in advance the parameters that will be used to calculate their initial wealth. The quarterly update of the composite index therefore constitutes a fundamental tool for maintaining the equity and sustainability of Argentina’s social security system.
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