People march to Congress during a national strike to protest economic and labor reforms proposed by Argentine President Javier Milei in Buenos Aires, Argentina, Jan 24, 2024. (PHOTO / AP)

BUENOS AIRES - As labor and business groups failed to reach an agreement, Argentina has proposed a 30-percent increase in the minimum wage by March, the presidency's spokesperson Manuel Adorni said Tuesday.

"It has not been possible for the parties to effectively agree ... when this happens, the government must arbitrate between the parties and set a minimum wage," Adorni told a press conference at the presidential headquarters of Casa Rosada in Buenos Aires.

The hike would also apply to retirement and welfare programs, such as the Universal Child Allowance, according to state news agency Telam

The proposed hike would take place in two stages, raising wages to 180,000 pesos ($215) in February and 202,800 pesos ($242) in March, up 15 and 30 percent respectively.

The hike would also apply to retirement and welfare programs, such as the Universal Child Allowance, according to state news agency Telam.

Recently, the Salary Council, comprising business representatives and labor unions, failed to reach an agreement in its meeting.

Unions have demanded a salary increase of 85 percent given the current levels of inflation in Argentina, where accumulated inflation in the past two months exceeded 45 percent.

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The council's last agreement was reached in September 2023, when the minimum wage was set at 156,000 pesos (about $186) until December 2023.