DECEMBER 20, 2022

Decree No. 841/2022: non-remunerative allowance for employees of the private sector.

CIRCULARS

Labor & Social Security Law Department Report | Decree No. 841/2022: non-remunerative allowance for employees of the private sector

Dear Sir or Madam,

On December 17th, 2022, Decree No. 841/2022 was published in the Official Gazette, whereby a non-remunerative allowance is granted to the employees of the private sector on an exclusive basis. The most outstanding items of the Decree are the following.

(i) Subject-matter: This measure includes employees under an employment contract working in the private sector who earn a net salary (including remunerative and non-remunerative items and excluding the 13th Month Salary) as accrued in the month of December of the year 2022, lower than the amount of Argentine pesos one hundred eighty-five thousand eight hundred fifty-nine (AR$185,859).

The allowance shall be paid by the employers in the month of December of the year 2022.

(ii) Amount. The amount of the non-remunerative allowance is established as follows:

a. For the employees whose net salary (corresponding to the one accrued in December 2022) is lower or equal to AR$161,859, the allowance will be AR$24,000.

b. For the employees whose net salary (corresponding to the one accrued in December 2022) is higher than AR$161,859 and lower or equal to AR$185,859, the allowance will be equal to the difference between this last amount and the net salary of the month of December. For instance, if the net salary is AR$180,000, the amount of the allowance will be AR$5,859.

c. Employees whose net salary is higher than AR$185,859 are excluded from this allowance.

d. When the rendering of services is inferior to a legal or conventional working day, the non-remunerative allowance will be an amount proportional to the working day.

(iii) In the event that the payment of a non-remunerative allowance on an exclusive basis or any equivalent benefit between November 2022 and January 2023 is agreed -or included in the pertaining Collective Bargaining Agreement-, the allowance established by this Decree may be consolidated until its completion.

(v) House cleaning personnel. For the employers of House cleaning personnel, the amount paid will be deducted from the corresponding Income Tax in the terms set forth in Act 26.063 and in accordance with the conditions that the Federal Administration of Public Revenue establishes.
Those employers who are not included in the deduction option as explained in the previous paragraph may request an imbursement up to fifty percent (50%) of the amount paid (pursuant to the conditions established by the applicable authority).

(vi) Micro, Small, and Medium Enterprises Sector 1. These organizations (that have a current MiPyME certificate) may deduct the advances of the Income Tax in an amount equivalent to fifty percent (50%) of the total amount paid as non-remunerative allowance and, in turn, defer the payment for the Fiscal Year 2023 (according to the terms and conditions established by the Federal Administration of Public Revenue).

Please, do not hesitate to contact us should you require any further information on this matter.

Sincerely,

Álvaro J. Galli
Gonzalo Roca