By means of Decree 438/2023, published on August 31, 2023, in the Official Gazette, the government decided to provide a special one-time non-remunerative allowance to employees in the private and public sectors and domestic personnel (the “Allowance”).

The Ministry of Labor specified the details of this Allowance through Resolution 1125/2023, published in the Official Gazette on September 1, 2023.

Below we summarize the key rules for this Allowance:

• Employees in the public and private sectors (including employees in the construction industry, rural, and other special professional areas) will receive ARS 60,000 as Allowance, while domestic personnel will be paid ARS 25,000.
• To be eligible for this Allowance, employees must have a net salary below ARS 400,000.
• The Allowance amount will be based on the net salaries earned in August 2023.
• The Allowance will be paid in two equal and consecutive installments (two installments of ARS 30,000 for employees in the private and public sectors, and two installments of ARS 12,500 for domestic personnel). The first installment will be paid within 15 working days starting from September 1, 2023, and the second installment will be included with the October salaries.
• The monthly amount of each Allowance installment will be:
  • ARS 30,000 for employees with net salaries up to ARS 370,000 (and ARS 12,500 for domestic personnel with net salaries up to ARS 387,500).
  • The difference between ARS 400,000 and net salaries above ARS 370,000 for employees earning less than ARS 400,000 (and the difference between ARS 400,000 and net salaries above ARS 387,500 for domestic personnel earning less than AR $400,000).
• Part-time employees will receive a proportional Allowance based on the hours they work.
• To receive the Allowance, the employment contracts must have been declared before the authorities by August 31, 2023, and eligible employees must have actually worked during this time.
• The Allowance also applies to employees on paid sick leave by August 31, 2023. In such a case, the Allowance will be calculated based on their usual working hours before they went on leave.
• Employers may compensate the Allowance with future salary increases to be agreed upon during peer negotiations.
• Micro and small companies can use the Allowance payment to offset their contributions to the social security system. Micro companies can use 100% of the payment, and small companies can use 50%, with the maximum reimbursement being the total employer's contributions declared for social security purposes.

In case your organization would like to seek advice in connection to this or other employment-related matter, please get in touch with one of the key contacts listed.