Why does this matter?
If you hire new employees in Argentina, you can reduce employer social security contributions by up to 85% for 4 years. The regime is fully regulated and operational as of May 2026.
Key facts:
– Regulation: Law 27,802(Title XX); Decree 315/2026; ARCA General Resolution 5844/2026.
– Effective: May 6, 2026
– Enrollment: voluntary for the employer
– Window: May 1, 2026 through April 30, 2027
What is the RIFL?
The Labor Formalization Incentive Regime aims to reduce informality by granting employers an 85% reduction in social security contributions for each new worker hired, for the first 48 months of the employment relationship.
Who qualifies?
Employers registered with the Customs Collection and Control Agency (“ARCA”) since December 10, 2025, who may enroll up to 80% of their workforce. Eligible workers include those who had no registered employment relationship as of December 10, 2025, those unemployed for the last 6 months, or those whose last job was in the public sector.
What is excluded?
The benefit does not apply to rehires by the same employer within 12 months of termination. Employers listed in the The Public Registry of Employers Subject to Labor Sanctions (“REPSAL”) or engaging in abusive practices (such as replacing existing staff to exploit the benefit) are also excluded.
Reduced contribution rates:
– 1.31% → Pension System (SIPA)
– 0.57% → Family Allowances
– 0.12% → National Employment Fund
– 3% → Comprehensive Medical Attention Program (INSSJP)
Next steps:
Enrollment is processed digitally through ARCA’s “Simplified Registration” service, which automatically applies the reduced rates. Workers may supplement their income through the general regime or as simplified tax system taxpayers.
We remain at your disposal to assist with the enrollment process.
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