Necessity and Urgency Decree No. 438/2023.
Labor & Social Security Law Department Report | Necessity and Urgency Decree No. 438/2023
Dear Sir or Madam,
Today, Decree of Necessity and Urgency No. 438/2023 (the “DNU”) was published in the Official Gazette.
1. The DNU establishes as mandatory the payment of a non-remunerative allowance in favor of private sector workers of up to $60,000 (the “Allowance”), which will be governed by the following terms and scope:
(i) The Allowance will be paid in two installments with the salaries corresponding to August and September.
(ii) Workers that shall be entitled to the Allowance will be those who, as of August 2023, earned a net salary, including remunerative and non-remunerative items, of less than $400,000.
(iii) Those workers who, as of August 2023, earned a salary of less than $370,000 net, will receive the Allowance in two installments of $30,000.
(iv) Those workers who, as of August 2023, have earned a salary greater than $370,000 net, but less than $400,000 net, will receive the Allowance in two installments for an amount equivalent to the resulting difference between their net salary and $400,000.
(v) The Allowance may be absorbed by the salary increases that are agreed upon in the corresponding collective negotiations.
(vi) For part-time workers, the indicated amounts must be prorated to the time actually worked.
(vii) The first installment of the Allowance must be paid within 15 business days after September 1st. The second installment of the Allowance must be paid in the same term as September’s salary.
(viii) Micro and Small Businesses that have a valid “MiPyME” Certificate may compute the amounts paid for the Allowance on account of the payment of their employer contributions according to the following scheme:
– a. Micro: 100% of the total amount paid as Allowance.
– b. Small: 50% of the total amount paid as Allowance.
The refunds will be made during the months corresponding to the payment of the Allowance and will have as a maximum monthly amount the total of the employer contributions.
2. The DNU also provides for the payment of an Allowance for workers included in the Private House Personnel regime, which will be up to $25,000, and which will be governed by the following terms and scope:
(i) The Allowance will be paid in two installments with the salaries corresponding to the months of August and September.
(ii) The workers who will be entitled to the Allowance will be those who, as of August 2023, would have earned a net salary, including remunerative and non-remunerative items, of less than $400,000.
(iii) Those workers who, as of August 2023, have earned a salary of less than $387,500 net, will receive the Allowance in two installments of $12,500.
(iv) Those workers who, as of August 2023, have earned a salary greater than $387,500 net, but less than $400,000 net, will receive two Allowance installments for an amount equivalent to the resulting difference between the salary received and $400,000.
(v) The Allowance may be absorbed by the salary increases that are agreed upon in the corresponding collective negotiations.
(vi) For part-time workers, the previously indicated amounts must be prorated to the time actually worked.
(vi) The first installment of the Allowance must be paid within 15 business days after September 1. The second installment of the Allowance must be paid in the same term as the salary for the month of September.
(viii) Employers who were not affected by the Personal Assets Tax in 2022 Fiscal Year and who received net income in August 2023 for an amount of less than $1.500.000, may request a refund of up to 50% of the amount paid, in accordance with the regulations to be issued by the Ministry of Labor, Employment and Social Security.
3. Finally, the DNU also provides for the payment of the Allowance for workers dependent on the National Executive Branch.
Please, do not hesitate to contact us should you require any further information on this matter.
Sincerely.
Alvaro J. Galli
María Eduarda Noceti