A Hopeful Step for Public Employees
The province of Neuquén, located in Argentine Patagonia and home to the vast Vaca Muerta shale oil and gas formation, is moving toward a landmark wage agreement that would provide salary predictability until mid-2027. This comes amid extraordinary revenue from hydrocarbon royalties.
Key Details of the Wage Proposal
After several rounds of negotiations, the provincial government presented an offer that includes a minimum net salary of $1,560,000 (Argentine pesos) starting in August 2026 for workers with at least 35 hours per week. This amount is considered remunerative but not subject to bonuses, designed to ensure the salary exceeds the basic basket of goods.
Minister of Government Jorge Tobares stated optimistically: “This is the wage agreement with the highest level of protection for workers nationwide.” The proposal aims to maintain administrative services and provide predictability for both families and provincial finances.
Extraordinary Bonuses and Inflation Adjustments
The package includes two non-remunerative lump sums, also extended to retirees:
- $410,000 in the second half of September 2026.
- $480,000 in the second half of January 2027.
Additionally, salaries will be updated quarterly based on the Consumer Price Index (CPI) weighted between the Provincial Statistics Office and Argentina’s national statistics agency (INDEC), covering the period from July 2026 to June 2027. Adjustments will occur in October, January, April, and July. On top of that, there will be direct increases to the base salary: 4% in November 2026 and 3% in January 2027.
The Vaca Muerta Context and Record Royalties
The negotiations take place against a very positive backdrop for Neuquén. In June 2026, the province recorded all-time high revenues from oil and gas royalties, exceeding $327 billion and $89 billion pesos respectively, driven by global tensions in the Middle East. The head of the state workers’ union ATE, Carlos Quintriqueo, had demanded that part of these extraordinary unbudgeted resources be used to improve salaries—a request that appears to have been heard in the new offer.
“Finally, Neuquén ensures a minimum wage for state workers above the basic basket; this is something we have been seeking for a long time.”
Next Steps: The Assembly Vote
The proposal covers more than 68,000 state employees and will be debated this Friday at 9:30 AM in an assembly at the ATE building. It will also be offered to the UPCN union and the road workers’ union (Unavp). The goal is to reach a definitive closure of the wage agreement, projecting it through July 2027, which would provide enormous stability ahead of next year’s provincial elections.
Sources: LM Neuquén, Neuquén Informa, Econojournal, Río Negro