Administrative Decision No. 1133/20: Adoption of recommendations of the Evaluation and Monitoring Committee of the Emergency Assistance Program for Work and Production in its Minutes No. 15.
Labor and Social Security Law Department Report | Administrative Decision No. 1133/20: Adoption of recommendations of the Evaluation and Monitoring Committee of the Emergency Assistance Program for Work and Production in its Minutes No. 15
Dear Sir or Madam,
Administrative Decision No. 1133/20 (“Administrative Decision”), issued by the Chief of the Cabinet of Ministers and published in the Official Gazette on June 25, 2020, adopts the recommendations made by the Committee of Evaluation and Monitoring of the Program of Assistance of Emergency to Work and Production (the “Committee”) in Minutes No. 15.
With respect to those companies with more than 800 employees which receive the Complementary Salary, a new restriction was imposed consisting of not allowing the increase of fees, salaries, and payments in advance to the members of the administrative bodies in more than 5% in nominal terms of their value in Argentine pesos. Additional payments, bonuses, or extraordinary fees related to the achievement of certain results are included in this limitation. This restriction will be in force during 24 months from the end of the fiscal year in which the company obtained the benefit.
The Committee recommended the following:
(i) Complementary salary May 2020 ─ eligibility conditions: The Committee recommends to complement the previously adopted admissibility criteria, proposing that those companies that started their activities between January and April 2019, have the option of estimating the variation in billing by comparing April 2020 with December 2019.
(ii) Extension of the Assistance Program: Based on an analysis carried out in relation to the impact on the economy, the Committee recommends that the Assistance Program comprised of the Complementary Salary and the postponement and reduction of social security contributions, is extended with respect to wages and contributions accrued during June 2020.
(iii) Complementary salary – June 2020: The Committee recommends that the benefit be assigned to the following beneficiaries, in the amounts and conditions detailed in each case:
(a) Workers of companies that carry out activities that are critically affected: These activities must be included in the lists approved by Minutes No. 4 and No. 5 of the Committee. Regardless of the number of workers and the place where they carry out their activities, the Committee recommends that they receive the complementary salary benefit, the amount of which will be determined according to the following calculation guidelines:
i. The Net Salary will be 83% of the gross remuneration accrued in April 2020 declared in Form 931 corresponding to said period.
ii. The Complementary Salary shall be equivalent to 50% of the Net Salary stated in point i).
iii. Such result in no case will be less than one minimum wage, nor greater than two minimum wages.
iv. In no case the amount of the Complementary Salary may be higher than the employee’s net salary as of April 2020.
(b) Workers who carry out activities in places under preventive and compulsory social isolation: This benefit corresponds to those companies which main activity is included in the Committee’s prior Minutes, excluding those activities that are critically affected.
Regardless of the number of workers, the Committee recommends that they receive the complementary salary benefit exclusively for those employees who provide effective services in the places that according to the Necessity and Urgency Decree No. 520/20 are reached by Social, Preventive and Mandatory Isolation.
The amount of the benefit will be determined considering the same calculation guidelines as those indicated in point (a), above.
(c) Workers who carry out activities in places under social, preventive and compulsory distancing: This benefit corresponds to those companies whose main activity is included in the Committee’s prior Minutes, excluding those activities that are critically affected.
Regardless of the number of workers, the Committee recommends that they receive the complementary salary benefit exclusively for those workers who provide effective services in places that according to the Necessity and Urgency Decree No. 520/20 are reached by the social, preventive and mandatory distance.
The amount of the benefit will be determined considering the same calculation guidelines as those indicated in point (a), above, but it will be limited to a maximum of one minimum wage.
(iv) Complementary Salary – June 2020 – Conditions of admissibility: Regarding the conditions of admissibility of the complementary salary, the Committee recommends:
1. That it is assigned to those companies that do not have a variation greater than 5% positive of their turnover comparing: (i) the periods May 2019 with May 2020 for all those companies that had started their activities prior to January 2019 and (ii) the periods from December 2019 to May 2020, for those companies that started their activities between January 1, 2019, and November 30, 2019. For companies that started their activity from December 2019 onwards the variation in billing will not be considered for the purposes of obtaining the Complementary Salary benefit.
2. That for the purpose of calculating the total headcount, terminations of labor relations that occurred until June 24, 2020, inclusive, should not be considered.
3. That workers whose gross remuneration accrued in April 2020 exceeds the amount of $140,000 are not included as beneficiaries.
4. That all other rules established by the recommendations adopted by the Chief of the Cabinet of Ministers previously continue to be of application.
(v) Complementary salary – Moonlighting: In relation to those cases of moonlighting, the Committee recommends applying the following rules:
i. The amount of the complementary salary must be equivalent to 50% of all net salaries collected by the employee during April 2020.
ii. The result obtained from point (i) may not be less than one minimum, vital and mobile wage nor higher than two minimum wages.
iii. The amount of the complementary salary may in no case be higher than total net remuneration the employee collected during April 2020.
iv. The complementary salary must be distributed proportionally, considering the gross remuneration paid by each employer who has been selected to access the benefit.
(vi) Complementary salary ─ extension of requirements June 2020: The Committee recommends that those companies that obtain the benefit of Complementary Salary in relation to the remuneration accrued June 2020 must comply with the requirements established in section 1.5 of the point ii of Minutes No. 4 (and its subsequent clarifications and specifications).
Likewise, it recommends that the terms established for the restrictions on employers that obtained the complementary salary benefit in May 2020, should not be altered for obtaining the benefit with respect to salaries accrued in June 2020.
(vii) Complementary salary and employer contributions to the Argentine Integrated Social Security System ─ June 2020 ─ Expansion of activities: The Committee recommends incorporating the non-metal mining sector into the Assistance program.
(viii) Employer Contributions to the Argentine Integrated Social Security System: The Committee recommends that companies that carry out activities that are critically affected enjoy the benefit of a 95% reduction in employer contributions destined to the Argentine Integrated Social Security System.
For those companies that have employees performing effective tasks in places where social, preventive and compulsory isolation prevails, or in places where social, preventive and compulsory distancing prevails, the Committee recommends that they enjoy the benefit of the postponement of the due dates to pay the employer’s contributions destined for the Argentine Integrated Social Security System.
Should you require any further information on this matter, please do not hesitate to contact us.
Alvaro J. Galli
María Eduarda Noceti