The administration of Javier Milei is promoting a comprehensive labor reform that significantly reduces the fiscal burden on employers. According to estimates by the CEPA center, the reduction of mandatory employer contributions alone will cost the budget 2.07 billion dollars annually.
The reform includes the creation of a Labor Assistance Fund (FAL), financed by 3% of the gross salary mass. These funds are intended to cover dismissal costs, effectively transferring part of the social risk to the workers themselves. Additionally, contribution rates for union health insurance systems will drop from 6% to 5%, and contributions to social security subsystems, such as PAMI and the pension fund, will be reduced.
The measures also feature a new employment regularization process. The "Promotion of Registered Employment" program includes a broad amnesty that extinguishes tax-related criminal actions and forgives fines and sanctions for past violations.
Corporate taxes are also affected. A reduction in the income tax rate will benefit 15,474 large companies with a total advantage of 2.099 billion dollars. Simultaneously, internal taxes on luxury goods—such as high-end cars, aircraft, and yachts—are eliminated, costing the budget 330 million dollars. Analysts note that these measures constitute a massive transfer of resources from labor to capital.
