Update of Family Allowance Regime

Through Decree N° 1282/13, duly published in the Official Gazette on September 4, 2013, the government increased the ceiling of the income for the perception of family allowances, that was established by Decrees N° 1667/2012 and 614/2013.

Decree 1667/2012 provided that the limit that determines the granting of family allowances and the amount of the allowances shall be calculated based on the total income of the family group.

For that purpose the following items are considered as income: (i) employees’ registered salaries, (ii) benchmark income for the self-employed and (iii) contributory and/or noncontributory benefits (national, provincial and municipal or from the City of Buenos Aires).

Decree 1282/2013 increased the ceiling of the income applicable to a family group from AR$ 16,800 to AR$ 30,000. Furthermore, it has established that the perception of an income that exceeds the amount of AR$ 15,000 by one of the members of the family group, excludes such group from the payment of family allowances, even if the sum of their total income does not exceed the ceiling of AR$ 30,000.

Decree 1282/2013 is applicable to family allowances to be collected as of September, 2013.