A current draft of the labor reform is circulating in the union and business offices. The text creates a Investment regulation for medium-sized companies, reduction of employer contributions by 3 points while creating a compensation fund, deregulation of salary accounts, including changes to increase the formalization of employment.
The Ministry of Economic Affairs made its contribution to “strengthening” the reform, particularly in the tax area.
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One of the changes promoted by the Palace of Finance and expected by Minister Luis Caputo is that Reduce employer fees by 3 points and direct these funds to a severance fund.
The draft reform, presented on December 9th, says this The contributions paid by the employer amount to 5% of the wages of employees who are dependent..
It also reduces Contributions to the National Institute of Social Services for Pensioners and Pensioners (INSSJP-PAMI). For employees in the service and trade sectors it falls from 20.40% to 17.40% and in the rest of the private and public sectors it falls from 18% to 15%.
Work Assistance Fund
On the other hand, it justifies the creation of one Employment Assistance Fund (FAL), similar to the current Termination Fund systemshould help address the problem Compensation. The fund does not replace or change the current compensation system.
The funds will be used to cover compensation for workers registered at least 12 months ago and cannot be used for unregistered workers.
This fund Does not apply to construction workers nor for those who work in domestic service.
The funds must be allocated to a private account and will be held in the amount Mandatory monthly contribution of 3% of wages, which serves as the basis for calculating employer contributions. The amounts are paid by the employer and can be routed through ARCA to simplify the process along with the payment of contributions and contributions.
The funds can generate income through investments made by their manager under the terms and conditions established by the Ministry of Economy. The employer can also make voluntary contributions, donations and other unplanned income can be added.
The administration is carried out by a representative authorized by the National Securities Commission. It applies to each employer individually, but applies generally to employees. In order for the employee to receive compensation in this way, the employer must have made contributions for at least the last six months to ensure the “financial stability” of the fund. There is no income tax on the income from these funds.
Employers who comply with this rule will receive a 3 percentage point reduction in employer contributions to the Integrated Pension System (SIPA). that pools resources for retirement.
The creation of this fund is in line with Caputo’s statements about the need to strengthen the local capital market.
Investment regime
The text explains the creation of the Medium Investment Incentive Scheme (RIMI) local and foreign. The beneficiaries are legal entities registered in Argentina or authorized to act in the country in which they operate. productive investments in the first two years of the regime.
The investments can be for Acquiring, manufacturing or importing new personal property (other than automobiles) that can be deducted for income tax purposes and performing work. Financial investments are excluded.
The minimum investment amount varies depending on size: For micro-enterprises the minimum amount is US$150,000, for small enterprises it is US$600,000, for medium-sized enterprises Tranche 1 is US$3,500,000, for medium-sized enterprises Tranche 2 is US$9,000,000 and for the remaining enterprises it is US$30,000,000.
Those who adhere to the regime will have this accelerated depreciation for income tax and refund of tax credits for VAT. Anyone who takes advantage of the RIGI (including registered suppliers) or any other incentive system for the same productive investments cannot join.
Salary account
The project also includes the possibility of paying salaries through virtual wallets or payment service providers, in addition to salary accounts in banking institutions. The change also eliminates the option of paying in cash or by check.
This article resolves an outstanding dispute between banks and brokerage firms over the possibility of collecting payments through other means. Banks warned last week that the introduction of virtual wallets would provide an advantage for them “at the expense of greater risk for employees and pensioners”.Contingencies for the state, impacts on credit generation for businesses and people and larger systemic risks.”
Payment service providers must be authorized by the Central Bank to receive salaries.
Employment contract
Self-employed people and their employees as well as employees on digital platforms are exempt from employment contract law.. This clarifies the possibility of assuming a dependency relationship when billing or working on digital platforms.
It also changes the regime that is most favorable to the employee and eliminates the possibility that, in the event of doubts about the interpretation of the law or the assessment of evidence, judges must decide which meaning is most favorable to the employee.
Specifies that employers and employees can agree on a Hour bank by saying that there can be “a system of overtime compensation” and that there can be “a system of overtime, a bank of hours, compensatory francs,” etc.
He adds that the Collective agreements will not have comprehensive or analogous application.excludes that Tips the consideration of compensation (something that became relevant due to the Piegari Restaurant trial).
Create one new employment regime with benefits for new hires in a dependent relationship, such as: B. an employer contribution rate of 2% for the first two years of employment and a rate of 3% for PAMI.
“What I think has the greatest impact on job creation is whether there will actually be a reduction in employer contributions for companies that regularize workers or hire new employees. And that at some point this will be linked to the general regulation,” he explained. Pablo Mastromarino, by Tanoira Cassagne.
In addition, he described expanding benefits as beneficial for companies to prevent litigation over benefits that are later challenged as salary, as well as setting specific guidelines for compensation when calculating seniority.
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