In brief
On 4 May 2026, Decree 315/26 was published in the Official Gazette, which regulates the chapter of the Labor Modernization Act No. 27,802 (LMA) that established the Labor Formalization Incentive Regime (LFIR), which provides for reductions in employer’s social security contributions for new hires (the “Benefit”).
In focus
What does the Benefit consist of?
It consists of reducing employer’s social security contribution rates to approx. 10% of the current one, for 48 months from the start of the employment relationship, in accordance with the following structure, which had already been anticipated by the LMA:
a. A total rate of 2% for employer contributions allocated to the Argentine Integrated Pension System, the National Employment Fund, and the Family Allowances Regime; and
b. A total rate of 3% allocated to the Social Security Subsystem governed by Act No. 19,032 (INSSJP).
What is the term of the Benefit?
It applies for 48 months counted from (and including) the month in which the new employment relationship begins.
Who does it apply to?
Employers who hire and register new personnel with the Tax Authority (ARCA) between 1 May 2026 and 30 April 2027.
Which new hires are eligible to enable the employers’ access to the Benefit?
- They must not have been registered as employees as of 10 December 2025.
- They must have been unemployed during the 6 months prior to registration.
- They must come from the public sector (Federal, Provincial, Municipal, or the City of Buenos Aires).
- They must have been registered under the Monotributo regime, provided they were not employees in a private-sector employment relationship as of 10 December 2025 or during the 6 months prior to registration.
What happens with new employers?
Those who registered as employers with ARCA as from 10 December 2025 may include up to 80% of their employee headcount in the LFIR to obtain the Benefit.
What happens to the Benefit in cases of multiple employment?
The employer will not lose the Benefit if the employee included in the LFIR simultaneously earns other income as a self-employed worker (“autónomo”) or as a low-income entrepreneur (“monotributista”).