21/07/2026 09:20 - Politica
The Argentine government has taken a fundamental step to provide legal certainty in the workplace. Through Decree 612/2026, published in the Official Gazette on July 20, 2026, the scope of the new Labor Modernization Law was clarified regarding the calculation of union contributions.
The decree, signed by President Javier Milei, Chief of Staff Diego Santilli, and Minister of Human Capital Sandra Pettovello, arises from negotiations with the CGT (General Confederation of Labour, the largest trade union center in Argentina). Its main objective is to unblock the renegotiation of some 800 collective bargaining agreements, allowing employers and unions to move forward without the fear of lawsuits that the previous regulation generated.
The 2% cap for solidarity contributions (a fee paid by non-union workers to the union representing their sector) will be calculated on a broader, fairer base. This includes:
To protect the workers' take-home pay, all concepts that are not normal, habitual, or monthly are left out of the calculation base. The decree explicitly excludes:
Another highlight of the new decree is the clarification on employer contributions. The regulation establishes that contributions that employers agree to pay directly to unions through collective agreements are not subject to the 2% limit.
This will allow companies to continue allocating funds to social works (health insurance run by unions), retirement or burial insurance, thus improving workers' well-being. As a condition, the decree requires that these funds have special administration, managed and documented separately from other union assets, ensuring transparency and a social, welfare, pension, or cultural destination.
The measure is interpreted as a positive concession after weeks of negotiations. The government and the CGT reached a consensus that avoids a wave of lawsuits and allows collective bargaining to resume. While the labor center will maintain its planned protest agenda, the dialogue demonstrated that it is possible to find common ground for labor progress.
Alfredo S. Quiroga
