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Argentina and Mexico Employers Scale Back Pay Plans as Inflation Cools

Cautious outlooks reflect a shift away from broad pay increases.

Overview

  • PwC Argentina now projects average 2025 salary increases of 29.5%, down from 40.15% expected earlier in the year and aligned with slower consumer inflation.
  • Most Argentine companies are timing adjustments for September–October, with 62% reviewing pay on a quarterly or four‑monthly cycle.
  • Roughly 60% of Argentine firms report uncertainty over income‑tax calculations on wages, and only 41% conduct regular payroll audits.
  • Michael Page’s 2026 guide shows only 62% of Mexican employers are certain they will raise pay next year, with six in ten planning increases of just 1% to 5% and about 1% expecting hikes above 16%.
  • In Mexico, only 52% of workers received a raise in the past year and most were inflation adjustments, a pattern executives link to weaker motivation and higher turnover risk; finance roles stand out with projected gains of 10% to 15%.