Regulatory Alert: Decree No. 14/2020
CIRCULAR
Labor Law Department Report | Decree No. 14/2020
Dear Sir/Madame,
Last Friday January 3rd, 2020, Decree N°14/2020 (the “Decree”) was published in the Official Gazzette. This Decree establishes a mandatory increase to all employees of the private sector of AR$3.000 for January 2020 and AR$4.000 from February 2020 onwards.
The increase will be subject to the following rules:
• It shall be absorbed by future collective negotiations of the wage scales set by the Collective Bargaining Agreements (CBAs);
• It will not be taken in consideration for the calculation of any additional payment established by the CBAs and/or the individual employment contracts, unless otherwise agreed by the collective negotiations;
• It shall be paid under the denomination “solidarity increase”;
• For all those employees that render services part time, the increase shall be proportional to the worked time, in accordance to the general rules established by labor regulations.
Micro, Small and Medium Companies that have a valid MiPyME Certificate (or that process it within sixty days from the date of entry into force of the Decree) and civil non-profit entities, will be exempted from paying employers’ social security contributions on the salary increase for a period of three months, or the shorter term in which such increase is absorbed by future collective negotiations.
Workers of the National Public Sector, the Agricultural Workers and Private House Personnel are excluded from the application of the Decree.
We remain at your disposal should you need any clarification.
Kind regards,
Alvaro J. Galli
María Eduarda Noceti