Reduction of Employer’s Contributions

Decree No 2166/2009 extends the term to be benefited with the partial reduction of employer’s contributions for the registration of new employment or the regularization of unregistered pre-existing employment until December 31, 2010, as from the month employment starts.

Article 16 of Law No. 26,476 establishes that for the term of 24 months after employment starts or an unregistered pre-existing employment is regularized, employers shall enjoy a reduction of their contributions in force destined to the different social security subsystems.

The benefit itself consists in that during the first 12 months after employment starts, employers will have to pay only 50% of said contributions. This shall be increased to 75% during the second 12 months.

Moreover, article 23 of said law provides that the benefit shall be effective for 12 months as from the date on which the provisions of the above mentioned law become effective. The Executive may extend the term of said benefit.

In view of the above and as per Decree No 2166/2009, the Executive extended the term in force for the benefit set forth in Chapter II, Title II of Law No 26,476, from December 24, 2009 to December 31, 2010.