The Labor reform The proposal proposed by the government of Javier Milei has already been submitted to Congress and contains significant changes compared to the current system, both at the labor and tax levels. One of these key points stands out: Change in the employee’s salary.
The text submitted to the Senate contains the concept of “dynamic salary“, a system that would allow any company to negotiate directly with its internal union representation. It is a new flexible compensation system that adjusts more directly to productivity, individual performance or company results and is not tied exclusively to automatic inflation increases or fixed collective bargaining.
The project also adds new rules on how the employer can pay salary, what remuneration is allowed and how remuneration is calculated based on time worked or performance.
What could salaries look like if Javier Milei’s labor reform is adopted?
Below we explain point by point the changes that may be included in the salary if the labor reform is approved.
First of all, that “dynamic salary” It allows compensation to be adapted to the nature of the task and the working modality. In this way, the project specifies that the salary can be determined by time (day, hours worked or days worked), by performance (unit of work) or by individual or collective commissions.
The main points of the labor reform project presented by Javier Milei
This gives companies greater flexibility in determining how salaries are paid to their employees depending on productivity or workload.
Therefore, some of the elements included in the concept of dynamic salary are:
- Bonuses for productivity or performance.
- Mixed compensation, consisting of a fixed portion and a variable portion.
- Automatic adjustments related to goals, business results or industry performance.
Aside from that, The agreed salary may include other dynamic, temporary or variable remuneration components that recognize the merits or special features of the organization..
Another important change is that the salary does not have to be paid exclusively in pesos, but there is the possibility of paying in both national and foreign currency, for example dollars.
Complementary services are identified even though this is not the case Social benefitsCompensations such as car or travel expenses, cell phone and internet use, and urban passenger transportation to get to work are not included.
Monetary rewards must be made through a bank, an official savings bank or a payment service provider authorized by the BCRA (e.g Payment market).
Labor reform: Important changes to overtime and working hours
In addition to salary issues, overtime and working hours are another central issue. The employer and the employee can voluntarily agree in writing on a compensation scheme for overtime. These include institutes such as the Hourly Bank or compensation francs. This regulation must comply with the statutory minimum interruptions and ensure the protection of the employee.
Collective agreements or other collective agreements may specify methods for calculation maximum working day with minimum breaks of 12 hours between working time and 35 hours of weekly rest.
This means it is activated a time bank systemThere must be verifiable controls in place to enable accounting of hours worked and hours available for remuneration. Collective agreements can set their own parameters for calculating the average working day.
The minimum mandatory breaks remain twelve hours a day and thirty-five hours a week. With the hour bank, long days can be compensated for by shorter periods within the current legal weekly limit. The documentation created by time recording must be stored in digital or paper form with legal equivalence.
The parameters of Registration, control and compensation They are supervised by labor organizations that may require additional documentation in conflict situations. Employers must enable consultation mechanisms so that employees can access details of hours accumulated.
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