Incentive Program for Labor Formalization

The Federal Government published Decree 15/2026 in the Official Gazette on April 4, 2026. This Decree regulates the Incentive Regime for Labor Formalization (RIFL) under Law 27802. The Regime aims to promote the hiring and formal registration of employees by granting significant reductions in employer social security contributions for 48 months.

Enforcement Period
The regime applies to employment relationships that start and are formally registered between May 1, 2026, and April 30, 2027, inclusive.

Eligible Employers
Employers that registered on or after December 10, 2025, may apply for the regime and include up to 80% of their total workforce.

Eligible Employees
The regulation clarifies which workers are covered, including those who were previously registered under the Simplified Regime (Monotributo), if they did not have a registered private sector employment relationship as of December 10, 2025, or during the six months before being hired.

Scope of the Benefit
The reduction in employer social security contributions applies during the first 48 months of the employment relationship, in accordance with the contribution rates set out in Law 27802, with specific allocation among the different social security subsystems. If Additional income earned by the employee as a self employed worker or monotributista does not affect the benefit.

Compatibility and Exclusions
The RIFL benefit cannot be combined with the general reduction of employer contributions provided under article 76 of Law 27802. Employers must still pay the mandatory contribution to the Labor Assistance Fund (FAL).

Loss of Benefit
Failure to comply with the regime’s conditions, or triggering any exclusion grounds, will result in loss of the benefit, and employers will have to pay the unpaid contributions, plus interest and penalties.

Operational Aspects
Enrollment must be completed through the systems that the Argentine Tax Authority (ARCA) will implement. If the employer does not timely opt into the regime, the benefit cannot be applied retroactively. The regulation also provides for automated system controls to verify compliance with eligibility requirements and exclusion criteria.

Final Comments
The Decree provides greater certainty regarding the implementation of the RIFL. However, its practical operation will largely depend on additional rules ARCA issues and its coordination with other labor and social security programs.
Overall, the regime is a relevant tool to reduce labor costs for new hires and to encourage formal employment, although it is subject to strict compliance requirements.

For further information on the RIFL, created through Law 27802, please visit our labor reform hub here.