Decree No.. 14/2020 – “Solidarity Increase”

We share with you the report made by Drs. César Gustavo Ferrante Y Pablo Javier Nieto about Decree No.. 14/2020 – “Solidarity Increase” for workers in a relationship of dependency of the Private Sector and that entered into force on the day 5/1/2020.


We refer to Decree No.. 14/2020 of the National Executive Power, that was published on the day 04/01/2020 and that came into effect on the day 05/01/2020.

The Decree establishes a mandatory minimum wage increase of $4.000 for workers in a private sector dependency relationship (the "solidarity increase").

  • What is the finality?

The purpose of this measure is to maintain the purchasing standards of workers.

  • Who is it for?

This measure is aimed at all workers in the Private Sector, both for those within CCT, as for those outside of CCT.

They are excluded: workers of the National Public Sector, of the Agrarian Labor Regime and the Special Labor Contract Regime for the Personnel of Private Houses.

Notwithstanding this, the terms and conditions in which the "solidarity increase" will be extended to them will very likely be known shortly..

  • When should the the "solidarity increase"?
  1. The first the "solidarity increase" is for the sum gross from $3.000 and must be paid together with the remuneration for the month of January 2020.
  2. The second the "solidarity increase" is for the sum gross from $1.000 and paid together with the remuneration for the month of February 2020
  3. In other words, as of February, each worker covered will receive an increase of $4.000 brutes.
  4. Workers who receive biweekly: During the months of January and February, they must charge the 50% of the "solidarity increase" corresponding to said month.
  • How is it reflected in the pay stub?

It is mandatory that this concept is settled in the salary receipt as an independent item called “solidarity increase”.

It is worth noting that these increases granted during the months of January and February 2020 they are not one-time and extraordinary payments, rather, they will be incorporated into the salary as a separate concept from the basic salary.

  • At the time of liquidating, the "solidarity increase" must be taken into account for the calculation of the salary additional?

In principle, it should not be taken into account for the calculation of any additional salary provided for in the collective agreement or in the individual employment contract., unless specifically provided for by collective bargaining or by unilateral decision of the employer.

  • What happens to the staff who provide services on a shorter working day than the legal or conventional?

Part-time workers will receive the "solidarity increase" proportionally, according to the settlement mechanisms provided in the applicable CCT or, if they hadn't foreseen them, complies with the LCT.

  • What happens if a person did not work fully for the month that the tax is due "Solidarity increase"?

The decree says nothing about it.

However, We understand that it must also be paid in proportion to the days worked in the fortnight or in the month.

  • Nature dthe "solidarity increase"

It is a remunerative sum: the latter means that it is subject to contributions and contributions from social security and union, must be considered for the calculation of vacations, aguinaldo, overtime, holidays and compensation items.

For his part, the non-profit civil entities and the Micro, Small and Medium Enterprises that have a valid MSME Certificate will be exempted for the period January / March 2020 of the payment of contributions to the Argentine Integrated Pension System (SIPA) on the "solidarity increase".

Contributions destined for the National Social Work Scheme are not covered by this exemption.

This exemption ceases to be in force if the "solidarity increase" is absorbed., during the period January / March 2010, by equal bargaining corresponding to the employer.

The Micro, Small and Medium-sized Companies that do not have their current "MSME Certificate", may be included in the exemption from payment provided for in the preceding paragraphs provided that they obtain it within a period of sixty calendar days from the 05/01/2020.

  • Compensation possibilities:
  1. There is no possibility of compensating the “solidarity increase” with the increases already negotiated during the year 2019 (although these increases are granted during the year 2020);
  2. The "solidarity increase" may be absorbed by joint negotiations (for contract workers) or by unilateral increases resolved by employers as of the year 2020.
  3. Until the "solidarity increase" is fully absorbed, it must continue to be paid separately., in the corresponding proportion.
  • Can a Decree oblige employers to grant wage increases?

This provision is based on the Law of Social Solidarity and Productive Reactivation in the Framework of the Public Emergency, which empowers the National Executive Power to mandatorily provide that Private Sector employers pay their workers, minimum wage increases.

We remain available for any extensions and clarifications that they consider necessary..

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