Employers of the private sector hiring new workers will enjoy a reduction of their current employer’s contributions to the following social security subsystems:

• Sistema Integrado Previsional Argentino – SIPA (Argentine Integrated Pension System), Law No. 24241, its amendments and supplements;
• National Institute of Social Services for Retirees and Pensioners, Law No. 19,032, as amended;
• National Employment Fund, Law No. 24,013, as amended;
• National System of Family Allowances, Law No. 24,714, as amended.

The cut will be of 95% in the employer contributions for first 12 months of the new employment relationship. This percentage applies to the contracts of “a person who is a woman, transvestite, transsexual, transgender or a person with an accredited disability”. In the case of hiring a male, the reduction will be of 90%.

In order to enjoy the benefit of contributions:

• It must be a new hiring of a person who is participating, or has participated, in one of the professional training programs organised by the Ministry of Labour;
• The hiring has to produce a net increase in the payroll of the company with respect to the month of July 2021.

In the event of abusive practices, the employer will be automatically excluded from the benefit and will have to pay for social security , plus interest and penalties.

Employers wishing to make new hires under the Decree may declare their intention to initiate an active job search process througha platform offered via the Ministry of Employment’s website and, thus, access the benefit of reduced contributions.

The benefit is not provided for workers who are included in any of the following situations:

1. Having a job registered in the social security system at the hiring time, excluding participants of job placement programs and other programs that allow access to formal employment.
2. Have been declared in the General Social Security Regime, so after the labour distraction is reincorporated by the same employer within 12 months from the date of termination, regardless of the cause.
3. Being hired within 12 months from the date of dismissal without just cause or due to lack or reduction of work and force majeure of another worker in an employment relationship with the same employer.

The Ministry of Economy may establish, according to the national budget, maximum quantities monthly and annual of new labour relations to which the benefit can be applied.

The measure seeks to promote formal job creation and job placement of those who receive state benefits so that these vulnerable individuals can cover their access to decent living conditions by creating jobs in the private sector.