New benefits to promote the labor insertion of young people in Argentina

Published On - 30 août, 2021

Albert Hui Argentina

On August 6, 2021, Decree 493/2021 was published in the Official Gazette of Argentina, which allows employers to reduce employer social taxes, except for the National Social Work Regime, by 95% for female, transgender or disabled employees and by 90% for male employees both for the first 12 months after hiring.

To access to the benefit, the hired employee must participate, or have participated in the 12 months before hiring, in one of the training programs specified in the decree (educational, training and employment programs and / or policies and job placement) and the new incorporation must produce a net increase in the payroll with respect to the month immediately preceding, which shall be considered as the “base period”.

The benefit shall consist of:

– 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).
– 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.

This regulation will be effective in Argentina as from September 1st, 2021, applying to labor relationships that begin during the first 12 months as of that date.

The announcement comes eight days after the Government launches the “Te Sumo” program that encourages Small and Medium-sized Companies (SMEs) that hire young people to have the aforementioned cut in employer contributions and receive financial support from the State, which will cover the payment of up to 70 percent of salary during the first 12 months after discharge from work.

This initiative is aimed at young people between 18 and 24 years old with complete secondary education and the State contribution for each salary will be adapted to the size of the company, being $18,000 in micro, $14,000 in small and $11,500 in medium.

To access the program, SMEs will have to enroll in the Employment website and click on the button “Te Sumo Program”. Thereafter, the employment office of the Ministry of Labor closest to the SME registered address will be contacted.

Should you need assistance to evaluate the benefits and/or to apply, please do not hesitate to contact us at contact@orbis-alliance.com. We will get back to you very shortly.