Labor News

1. Income tax

By Decree No. 1006/2013, the Executive increased the special deduction established by section 23 (c) of the Income Tax Law.

Decree No. 1006/2013, published in the Official Gazette on July 26, 2013, increased the special deduction established by section 23 (c) of the Income Tax Law up to the equivalent net amount of the first installment of the mandatory semi-annual bonus for 2013.

Said provision will only affect the first installment of the mandatory semi-annual bonus for 2013 and will be applicable for employees whose gross remuneration, between January and June 2013, does not exceed the monthly amount of ARS 25,000.

This benefit shall be included in July’s 2013 pay slips as “Beneficio Decreto Nº 1006/2013”.

2. Minimum Wage

By Resolution No. 4/2013, duly published in the Official Gazette on July 29, 2013, the National Council of Employment, Productivity and Minimum Wage has increased the minimum wage.

For the workers under the scope of the Labor Contract Law, the National Public Administration and all the entities and organizations in which the Argentine State acts as an employer, Resolution No. 4/2013 established that as from August 1, 2013, the minimum wage will be of ARS 3,300 for monthly paid full time employees and of ARS 16.50 for hourly paid employees. As from January 1, 2014, the minimum wage will be increased to the amount of ARS 3,600 for monthly paid employees and of ARS 18 for hourly paid employees.

Additionally, Resolution No. 4/2013 settles that for part-time employees and employees who render services within a reduced schedule workday, the minimum salary wage shall be proportionally paid.

3. Collective bargaining agreement for software industries

On June 4, 2013, the Argentine Union of Employees of Authors Societies (UTSA) and the Chamber of Enterprises of Software and Computing Services (CESSI) executed a CBA for the software industry. Its scope of application covers all personnel that work for software companies, whether they carry out their work at the employer’s premises or at the premises of the employer’s clients. According to the CBA, all IT companies that while executing their activities, develop software and/or modify, transport, translate, adapt, create and/or compile from existing software, are included.

Directors, managers, chiefs, attorneys-in-fact, heads of the human resources department and secretaries specially assigned to assist management staff are excluded from the scope of the CBA.

The CBA, executed under the file No. 1476869 of the Ministry of Labor, Employment and Social Security, has not yet been approved by said Ministry.