The Argentine government introduced changes to the Labor Modernization Law through Decree 612/2026, which modifies how contributions to unions are calculated. Previously, union contributions were limited to 2% based solely on the conventional basic salary. The new decree expands this base to include regular and monthly remuneration components such as position, function, attendance, and seniority, while excluding extraordinary payments like bonuses, profit-sharing, overtime, and annual bonuses. This change allows for greater flexibility in negotiations between employers' chambers and unions within collective agreements. The reform does not alter social security contribution rates or mandatory worker contributions but requires that any direct employer payments to unions be used exclusively for social, welfare, pension, or cultural projects benefiting workers. These funds must be managed separately and documented independently.
Bias read (Center): The article presents the government's regulatory action as a clarification rather than a significant shift, emphasizing procedural adjustments over ideological stance. While the change benefits unions by expanding their funding base, it maintains existing contribution rates and imposes conditions on





