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How to understand social charges and how they impact undeclared work

How to understand social charges and how they impact undeclared work

In our country, we have a system of contributions to social security and the system of social works called SIPA (Argentine Integrated Pension System). It is the main or one of the sources of financing of the National State.

This system has two subsystems called inputs and contributions. These are mandatory for all dependents in a dependency relationship, employers and non-dependents (self-employed and monotributistas). That is, it is mandatory for all employment in our country.

Contributions to social security are the faces that the employer has the obligation to pay to the AFIP, to the State, every month, in concept of labor tax while the contributions to social security are those that every employer must contribute to the system through the withholding made by your employer on your salary receipt.

Let’s see in detail, the rates that correspond to the employer are 10.77% retirement; 6% social work; 1.9% PAMI; 4.7% ANSES and 0.94% National Employment Fund. For his part, the dependent has 11% at retirement; 3% to social work and 3% to PAMI.

These social charges partially and drastically impact the labor cost of employers and have a high degree of responsibility and are devastating in the high levels of informality, labor clandestinity and have a direct impact on the low and null creation of registered employment.

The low productivity existing in some sectors of the economy, due to the absence of incentives for investment, credit, the creation of accompanying policies for the SME sector, together with the high social charges, breaks the profitability of companies, development and growth , generating a vicious circle that increases informality, today reaching numbers that exceed the number of registered jobs.

Explained the theoretical context and the impact on the Argentine labor economy. In this context of urgency for SMEs, I consider it necessary to creation of a special regime for sensitive sectors of the 350 thousand employers (SMEs) that they cannot, because they want to, but cannot, take on white people, not to mention the impact of the setback of labor laws and the compensation system on Argentine employment. This special regime must take into account the payroll of an employer’s dependents, as well as their profitability, financial flow in the next 12 months and consequently, with the basic profit margins, State agencies must adjust their contributions to their profits. and losses.

Fiscal policy (both tax and spending) is the way that States carry out one of their main functions: for example, the redistribution of income to improve the well-being of the most vulnerable population. The objective of the intervention is to reduce the inequality that, due to multiple causes, manifests itself in the various societies, reducing poverty and favoring equity.

In order to balance the fiscal accounts of the Argentine public sector, not only is a tax reform necessary, but it is also important to review public spending, its reengineering and deindexation together with the improvement in its quality.

We have 8 million workers in BLACK, without retirement, without health insurance, without social work, without system protection. That is, almost half of the economically active population. The people who produce in our country, our economy is totally unprotected and clandestine.

However, the true way to combat illegal employment without altering the “protective” spirit of the Labor Contract Law is to eliminate companies’ fear of employing workers without culminating in debt, due to the high tax on work and fiscal pressure, since these charges are the ones that cause the main employment problem in Argentina.

Source: Ambito

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