Argentina: Advantage of the reduction in employer contributions for new hires


In short

By means of decree 493/21 (“Decree“) published in the Official Journal on August 6, 2021, an advantage for reducing employers’ social security contributions has been introduced in the event of new hiring of staff who participate or have participated in the Education, Vocational Training or Intermediation Programs of the Work of the Ministry of Labor, Employment and Social Security.

Among the main points of the Decree, we highlight:

  • The inclusion in the benefit of reduced employer contributions implies a 95% reduction in employers’ social security contributions during the first 12 months of employment for new hires who are women, transvestites (the law refers in Spanish to transvestite ), transsexual, transgender, or disabled; and a reduction of 90% when hiring men for the same period.
  • For the benefit to be applicable, it must be a new hire and a person who participates or has participated in one of the vocational training programs organized by the Ministry of Labor.
  • Via the employment website of the Ministry of Labor, employers wishing to proceed with new hires under the decree can declare their intention to initiate an active job search process via this platform and, thus, access the benefit of reduced contributions. .
  • In order to benefit from the benefit of contributions, new hires must produce a net increase in the company’s payroll compared to July 2021.
  • The financial assistance provided for in study, vocational training or work intermediation programs may be considered on the basis of the salary of the worker who enters into an employment relationship under the benefit of the decree.
  • The benefit cannot be granted to persons affected by one of the following situations: which allow access to formal employment; (b) they have been declared to the General Social Security Scheme and after termination of employment, whatever the cause, are reinstated by the same employer within 12 months of the date of termination of employment; and c) they are hired within 12 months from the dismissal, without just cause or for lack or reduction of work and force majeure, another worker employed by the same employer. The term provided for in points (b) and (c) above will apply to any event occurring from the date of this decree.

Click here to access the Spanish version.

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