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Argentina’s Military Forced Into Second Jobs as Wage Crisis Deepens Under Milei

Government authorizes active-duty personnel to work in the private sector amid declining real wages, budget cuts, and growing economic pressures.

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President Javier Milei jumps into a tank with Vice-President Victoria Villarruel as he stages a military parade in Buenos Aires to mark the 208th anniversary of Independence Day in 2024

Argentina has officially authorized active-duty military personnel to hold private-sector jobs while continuing their military service, a measure introduced amid a worsening wage crisis affecting the Armed Forces and the broader public sector under President Javier Milei.

The new policy allows soldiers, non-commissioned officers, and officers to take on a range of private-sector roles considered compatible with their military responsibilities. Permitted activities include work for transportation and delivery platforms such as Uber and Rappi, private security services, and other approved forms of employment.

The government has framed the measure as an expansion of freedoms for military personnel. However, the decision comes as military salaries have experienced a significant decline in purchasing power. According to the information provided, military pay has lost more than 80 percent of its value relative to inflation since Milei took office, leaving real wages 25 percent lower than they were in December 2023.

The authorization follows years of concerns over the loss of trained personnel from the Armed Forces. Officers, sub-officers, and specialized professionals have increasingly left military careers as compensation has fallen behind wages available in the private sector. The growing gap between military and private-sector incomes has contributed to mounting concerns about retaining qualified personnel.

The policy also arrives after a series of budget reductions affecting the Defense Ministry. In recent months, military associations have reported a continued erosion of purchasing power among service members, highlighting the financial challenges facing personnel and their families.

Additional strain emerged earlier this year with the dissolution of the Armed Forces and Security Social Works Institute (Iosfa), which was dissolved after accumulating millions in debt. According to the source text, the move resulted in widespread interruptions to healthcare coverage and delays in medical treatment for beneficiaries.

The decision comes against the backdrop of broader economic difficulties across Argentina. National inflation remains a major challenge, with the Consumer Price Index rising 7.8 percent in May alone, according to the figures cited in the source material.

Data from Buenos Aires city’s Institute of Statistics and Censuses (IDECBA) showed inflation in the capital reached 2.1 percent in May, bringing the cumulative increase for the year to 14 percent. The agency attributed most of the rise to higher costs in food, housing, utilities, health care, and education, which together accounted for 64.9 percent of the overall increase in prices.

The impact of the economic situation is also reflected in social indicators. Child poverty affects 42.3 percent of minors in Argentina, according to the data cited. More than five million children and adolescents live in poor households, while over one million live in homes classified as destitute.

As inflation and economic pressures continue to affect households across the country, the government’s decision to allow active-duty military personnel to seek additional income through private employment marks a significant shift in military employment policy and reflects the financial pressures facing members of Argentina’s Armed Forces.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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