The methodology to calculate the private-sector wage adjustment was updated for the first time in 5 years.
With the new formula, private workers will receive an adjustment of 1.14% starting on January, 2017. With the previous formula, it would have been of 0.49%.
The new methodology takes into account the expected inflation for the next period. Therefore, experts declared that it better reflects the reality of the worker.
The new formula includes compensation in the event that the calculation of the expected inflation has been lower than the real one.
The agreement for the new formula was jointly created by the Ministry of Labour, the Union of Chambers Business Sector (UCCAEP) and the National Wages Council. The process was closely monitored by the International Labor Organization.