Non-remunerative one-off lump sum payment (“Bonus”)

By means of Decree 665/2019 (the “Decree”), in force since its publication in the Official Gazette, the Argentine Executive established a non-remunerative one-off lump sum (“LS”), for all the private sector employees in an employment relation.

The LS amounts to five thousand argentine pesos (ARS 5,000). This sum must be paid in October 2019, or in the terms, installments and conditions established by the signatory parties of the applicable collective bargaining agreement (the “CBA”).

Employees who render services on a reduced workday -instead of the workday stablished by  law or by the CBA - will be entitled to perceive the LS  proportionally. In this case, the sum would be settled in accordance with the mechanisms contemplated by the applicable CBA or, if none, pursuant to the provisions of the Labor Contract Law (Act No. 20,744)

The Decree establishes that the LS may be compensated with future salary increases. Likewise, those employers who, unilaterally or by agreement, in an extraordinary manner, have granted other raises to the employees’ income, as of August 12, 2019, will be entitled to compensate the increases, up to the amount of the LS.

Finally, employees from the national, provincial and municipal public sector, workers from the Agrarian Labor Regime and personnel included in the Special Scheme of Employment Contract for Personnel of Private Houses are excluded from the scope of the Decree.