Labor and social security news

1. Personal contribution by workers in a contractual relationship. Extension of the 7% rate until January 1, 2008. On January 24, 2007 the Official Gazette published Decree No. 22/2007, which extends until January 1, 2008 the reestablishment of the 2 percentile points corresponding to the personal contribution by workers in a contractual relationship, which currently amounts to 7%. It should be remembered that Decree No 1387/2001 reduced from 11% to 5%, for the period of one year, the contribution by workers in a contractual relationship provided for by article 11 of Law No 24,241 and authorized the possibility of extending that reduction for one more year, or of a progressive increase in the rate during the same period until the 11% rate was reached. A first increase to 7% was ordered but all progressive increases were subsequently suspended. 2. Social Benefits. Extension until December 31, 2007 Decree No 24/2007 published in the Official Gazette on January 24, 2007 extends the social benefit implemented by Decree No 815/2001 until December 31, 2007, whereby lunch and food basket vouchers were increased to up to Ar$ 150 per month in favor of workers subject to an employment contract whose gross salaries were less than or equal to Ar$ 1,500. 3. Benefit of reduction in employer's contributions. Extension until December 31, 2007 Decree No 25/2007 was published on the same date and extends until December 31, 2007 the benefit of the reduction in employer's contributions established by article 6 of Law No 25,877 and regulated by Decree No 817/2004 in respect of those employers producing a net increase in their payroll. 4. Family allowances. Increase of amounts, caps, ranks of remunerations and pension contributions. Finally, on January 24, 2007 the Official Gazette also published Decree No 33/2007, increasing the amounts of family allowances, caps and ranks of remunerations and pension contributions which allow the collection of benefits according to the socio-economic situation of the different regions of Argentina. Decree No 33/2007 increases: (i) the maximum wage caps established by the first and second paragraph of article 3 of Law No 24,714, in order to exclude all workers collecting a wage exceeding the amounts of Ar$ 3,000.01 and Ar$ 3,5000.01 respectively, from the family allowances therein stipulated; (ii) the maximum wage caps established in clauses a) and b) of article 18 of Law No 24,714, for family allowances per child or disabled child, to the amounts of Ar$ 1,700.01 and Ar$ 2,200.01 respectively; (iii) the cap stipulated in the last paragraph of article 18 of Law No 24,714 which refers to workers from different regions of the country, to the amount of Ar$ 3,500.01 ; (iv) the maximum pension contribution cap established for the beneficiaries of the Integrated Pensions and Retirement System in clauses i) and j.1) of article 18 of Law No 24,714, for allowances per spouse and child, to the amount of Ar$ 3,500.01; (v) the maximum pension contribution caps of Ar$ 1,201 and Ar$ 1,801 established for the beneficiaries of the Integrated Pensions and Retirement System in clauses j.i) and j.2) of article 18 of Law No 24,714, for allowances per child and disabled child, to the amount of Ar$ 1,700.01 and Ar$ 2,200.01 respectively. It also increases by: (i) 20% the amount of the family allowances per child, per disabled child and allowance per child and disabled child of the beneficiaries of the Integrated Pensions and Retirement System in clauses a), b) and j) of article 18 of Law No 24,714 and amendments thereof; (ii) 100% the amount of the family allowances per birth, adoption and marriage stipulated in clauses f), g) and h) of Law No 24,714 and amendments thereof; (iii) 100% the amount of the family allowance per spouse stipulated in clause i) of Law No 24,714 and amendments thereof. CONTACTS For more information, please contact: Javier E Patrón Gabriel A Schlosser