Yesterday, the Ministry of Economy and Productive Development announced a series of measures that seek to reduce the economic impact in the context of the health emergency caused by Coronavirus. So far, the measures have not been formalized by the Government, which is expected to happen shortly. The announced measures are:
- Exemption from the payment of employers' social security contributions for the sectors critically affected by the Coronavirus pandemic. This includes, for example, companies engaged in leisure activities: cinemas, theaters, restaurants, etc., tourism, transport and hotels. Additionally, this may include companies with logistic difficulties or whose provision of supplies has impaired their production processes.
- Expansion of the Productive Recovery Program (REPRO) to guarantee the employment of employees of the companies affected by the health emergency.
- Increase of the unemployment insurance.
Update on cap for social security withholdings
By means of Executive Order no. 110/18, which came in force to regulate Law no. 27,426, the National Social Security Administration (ANSES) is in charge of establishing the minimum and maximum caps applicable to Social Security withholdings for the individuals under employment relationships. In this context, please note that Resolution 76/2020, recently issued by the ANSES, updates the maximum and minimum caps set forth in article 9 of Law no. 24, 241, which are respectively ARS 173,945.70 (USD 2,717) and ARS 5,352.24 (USD 83).
Those caps are applicable as from the accrued period of March 2020, and therefore, must be taken into account in the preparation of the monthly sworn declaration of withholdings and contributions to the social security, F-931 Form, to be filed during the first days of April 2020.