President Javier Milei said real wages in Argentina have fallen as part of the country's ongoing economic adjustment [1].
The admission comes as the administration faces growing social unrest and labor disputes. The decline in purchasing power threatens the political stability of Milei's reform agenda, which relies on public endurance of austerity to curb hyperinflation.
Speaking Thursday, April 11, 2026, at a Fundación Libertad event in Buenos Aires, Milei said the wage drop was linked to persistent inflation and a slowdown in economic activity [3, 4]. He said the situation is a reality that must be faced with responsibility [3].
"Entiendo que la gente se sienta mal," Milei said, or "I understand that people feel bad" [1].
Despite the acknowledgement, the president defended the necessity of his fiscal measures. He said the public should have patience while the government implements structural reforms intended to stabilize the economy [2].
Data regarding the impact on the lowest earners suggests a severe contraction. The purchasing power of the minimum wage has fallen 40% [5]. Furthermore, the current minimum wage represents approximately one-third of its level from September 2011 [6].
Milei did not provide a specific timeline for when wages would recover, but he said the current adjustments are the only path to long-term stability [2].
"Pedimos paciencia a los argentinos mientras se implementan las reformas necesarias," Milei said, or "We ask for patience from Argentines while the necessary reforms are implemented" [2].
“"El salario real cayó, y eso es una realidad que debemos enfrentar con responsabilidad"”
Milei's public admission of falling real wages marks a shift from purely theoretical economic arguments to acknowledging the tangible hardship of the Argentine population. By framing the loss of purchasing power as a necessary stage of 'adjustment,' the administration is attempting to manage expectations and preempt social unrest. However, with minimum wage power at its lowest level in 20 years, the gap between macroeconomic stabilization and the daily survival of citizens remains the primary risk to the government's viability.
