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Employment and professional training programs: Employer contributions for new hires are reduced


Rodrigo Solá Torino - Partner - Marval O'Farrell Mairal
Mercedes Paola Forchiassin - Associate - Marval O'Farrell Mairal
Martin Emiliano Guala - Associate - Marval O'Farrell Mairal

Submitted by Firm:
Marval, O'Farrell & Mairal
Firm Contacts:
Enrique M. Stile
Article Type:
Legal Update

On August 6, 2021, Decree No. 493/2021 ("Decree") was published in the Official Gazette, granting employer social security contribution reductions ("Benefit") to private sector employers who hire employees that are currently participating in, or who in the 12 months prior to being hired participated in, any of the educational, professional training or labor intermediation programs ("Programs") of the Argentine Ministry of Labor, Employment and Social Security ("MTEySS" for its acronyms in Spanish).

The applicable percentage will be reduced during the first 12 months from the beginning of the employment relationship as follows:

(a) 95% in the case of cis gender women, transvestites, transsexuals, transgenders, or persons with accredited disabilities;

(b) 90% in the case of cis gender men.

To be able to access the Benefit, the following conditions must be met concurrently:

(a) That workers are participating or have participated in any of the MTEySS Programs outlined in Annex I of the Decree) during the last 12 months prior to being hired.

(b) That as from the incorporation day there is a net increase in the payroll for the month immediately prior to the Decree's entry into force.

The Benefit includes employers to whom Chapter 3 of Title IV of Law No. 27,541 applies.

The Benefit will not be applicable to:

1) Employees who:

(a) At the time of being hired, have a registered job in the social security system, with the exception of participants in labor insertion programs and other formal employment programs.

(b) Have been reported in the General Social Security System and upon termination of their employment, regardless of cause, were reincorporated by the same employer within 12 months as from the termination date.

(c) Are hired within 12 months from the date of dismissal without just cause or resulting from insufficient or reduced workloads and force majeure involving another worker employed by the same employer.

2) Employers who:

(a) Are listed in the Public Registry of Employers with Labor Sanctions (REPSAL), for as long as the listing persists.

(b) Abuse the benefit granted under the Decree, by for example, substituting personnel under any legal device or terminating their status as employer and then creating a new legal device as such, either through the same or different human or legal persons. Abuse includes any other presumption so established by the AFIP.

If employers incur such forms of abuse, the Benefit will no longer apply effective immediately.

Any other cause of exclusion will result in the loss of the Benefit and employers will have to pay all previously excused social security contributions, plus applicable interests and fines.

In addition:

(i) The reduction does not apply to Social Security and the National Health Insurance Administration (“ANSSAL,” for its acronyms in Spanish) contributions to the Secretariat of Health.

(ii) Differential and special social security regime tax rates are excluded.

(iii) Benefit percentages are reduced in half for part-time employees.

(iv) The Benefit cannot be processed retroactively. Thus, failure to exercise the right to access the Benefit from the time the employment relationship begins precludes employers from retroactively using unclaimed Benefit period(s).

(v) The Ministry of Economy may establish maximum monthly and annual Benefit amounts applicable to new labor relationships, for which budgetary income availability will be taken into account.

(vi) The Benefit is incompatible with the reduction of employer contributions provided, among others, by Decrees No. 34/21, 191/21 and 323/2021. If the benefits under Decree No. 191/21 and No. 493/21 apply to a new benefit, the employer will have to opt between one regime or the other.

(vii) Decree No. 304/17, which provided monthly economic assistance for workers affected by employment issues included in national programs implemented by the MTEySS or the Ministry of Social Development who are employed in the private sector is repealed.