Reduction benefit of employer contributions to employers

August 10, 2021

On August 6, 2021, Decree No. 493/2021 was published in the Official Gazette of Argentina, which specifies the reduction of employer contributions to employers and employers in a particular situation.

1. Reduction of employer contributions

Employers of the private sector hiring new workers that participate or have participated in Educational, Professional Training or Labor Intermediation Programs, within the term established by the norm, will enjoy a reduction of their current employer’s contributions to the following social security subsystems:

  1. Sistema Integrado Previsional Argentino – SIPA (Argentine Integrated Pension System), Law No. 24241, its amendments and supplements;
  2. National Institute of Social Services for Retirees and Pensioners, Law No. 19,032, as amended;
  3. National Employment Fund, Law No. 24,013, as amended;
  4. National System of Family Allowances, Law No. 24,714, as amended.

2. Benefits to be acquired

The benefit referred to in article 1° shall consist of:

  1. A reduction of 95% of the employer’s contributions corresponding to the first 12 months counted from the month of the beginning of the new employment relationship, even to hire a woman, transvestite, transsexual, transgender, or a person with a disability accredited through a certificate issued under the terms of Laws No. 22,431, No. 24,901 or similar provincial regulation.
  2. A 90% reduction of the employer’s contributions corresponding to the first 12 months counted from the month of the beginning of the new labor relationship, even to hire a male person.

3. Subjects included

Transvestites, transsexuals, and transgender persons are included in the provisions of the law, whether or not rectified in the registry of the sex, the change of the first name, and image referred to in Article 3 of Law No. 26,743.

In the case of female hired workers and part-time hired workers under the terms of Article 92 TER (Total Expense Ratio) of the Labor Contract Regime approved by Law No. 20,744 (consolidated text 1976), as amended, the benefits will be reduced by half.

4. Conditions

Employers will be benefited from each new incorporation of a male or female worker if the following conditions are met concurrently:

  1. The contracted worker participated during the last 12 months or is currently participating in educational, training, and employment programs and/or policies and labor intermediation programs.
  2. The new incorporation must produce a net increase in the payroll with respect to the month immediately prior to the effective month of this decree, which shall be considered as the “base period”.

5. Prohibition of the use of the benefit in some cases

The employer will not be able to make use of the benefit provided for in the norm about workers who are included in any of the following situations:

  1. Having a job registered in the social security system at the hiring time, excluding participants of job placement programs and other programs that allow access to formal employment.
  2. Have been declared in the General Social Security Regime, so after the labor distraction is reincorporated by the same employer within 12 months from the date of termination, regardless of the cause.
  3. Being hired within 12 months from the date of dismissal without just cause or due to lack or reduction of work and force majeure of another worker in an employment relationship with the same employer.

6. Effective date

The regulation is effective as from the first day of the month following its publication, i.e., from September 2021, applying to labor relationships that begin during the first 12 months as of that date.

Source: Boletín Oficial 06/08/21