Necessity and Urgency Decree No. 376/2020.
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Labor & Social Security Law Department Report | Necessity and Urgency Decree No. 376/2020
Dear Sir or Madam,
On April 19, 2020, the President issued the Necessity and Urgency Decree No. 376/2020 (“DNU”), which extends the benefits of DNU No. 332/2020 in relation to the Program of Emergency Assistance to Labor and Production in the framework of the health emergency decreed by DNU No. 260/2020.
The Decree No. 376/2020 provides the following amendments to Decree No. 332/2020:
a) It changes the name of the Salary Compensation Allowance, calling it “Supplementary Salary”.
b) It eliminates the requirements that needed a minimum number of employees to be able to access the reduction of contributions and the Salary Compensation Allowance.
c) It extends the benefits to all employees under an employment relationship, and not only to those included in the Collective Bargaining System.
d) It increases the amount of the Supplementary Salary, establishing that the amount of the allowance shall be equivalent to FIFTY PERCENT (50%) of the net wage of the employee corresponding to the month of February 2020, and may not be less than an amount equivalent to one minimum, vital and mobile wage, nor exceed two minimum, vital and mobile wages, or the total net wage corresponding to that month.
e) It provides that the amount of the Supplementary Salary shall be considered part of the remuneration or allowance set forth in section 223 bis of the Employment Contract Law.
f) It establishes that March 12th, 2020 is the date as of which a substantial reduction in invoicing must be registered in order to access the benefits established in said regulation.
g) It establishes Zero Rate Credits for a maximum amount of AR$150,000 for persons adhering to the Simplified Regime for Small Taxpayers and for employees and self-employed workers who meet certain requirements. Said credit shall consist of financing to be credited to the beneficiary’s credit card under the terms established by the Central Bank.
h) It establishes that the Decree will be applicable with respect to the economic results occurred as of March 12, 2020, and that the Chief of Cabinet of Ministers may extend the benefits provided therein, modifying the universe of affected activities, companies, and self-employed workers, until June 30th, 2020, inclusive.
i) Notwithstanding this, for those who continue to be affected by the social distancing measures, even when the social, preventive and mandatory isolation has ended, the benefits may be extended up to and including the month of October 2020.
j) Finally, it is provisionally established that the Ministry of Labor, Employment and Social Security shall regulate the procedure to be followed by those employers who have initiated the REPRO benefit, now replaced by the Zero Rate Credit.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Alvaro Galli
Santiago Taboada