The objective of this program is to consolidate the transition of beneficiaries of social plans to formal employment, encouraging companies to hire holders of social allowances.
The Government of Javier Milei extended the program Bridge to Employment until December 31, 2026. The measure was made official through Decree 1085/2024 published this Tuesday, December 10 in the Official Gazette.
The objective of this program is to consolidate the transition of beneficiaries of social plans to formal employment, encouraging companies to hire holders of social allowances. This program reduces labor costs for companies by allowing them to deduct the amounts of social allowances that workers receive from the salary they must pay, thus facilitating their incorporation into the formal labor market.
The decree also frames this decision within a broader restructuring plan for social programs, prioritizing public policies aimed at:
- Job training: Improve skills and abilities of the most vulnerable sectors.
- Promotion of registered work: Facilitate access to formal employment with labor and social security rights.
- Reformulation of existing programs: Adjust social plans so that they act as a bridge to employment, instead of being permanent assistance measures.
With respect to the beneficiaries of the social plans, they indicated that “a little more than a quarter of the economically active population of our country accesses a registered salaried job in the private sector”. “One of the factors that explain this scenario consists of the lack of skills and abilities that certain population segments have to develop productive work activities due, in large part, to the difficulties that these people face in accessing quality work experiences that allow them to incorporate relevant knowledge for the productive system,” they stated.
According to the document, “the “BRIDGE TO EMPLOYMENT” Program generates benefits that encourage private sector companies to hire workers with little or no formal work experience” mentioning that the Executive Branch began a process of reorganization, reformulation and replacement of social or employment programs, to promote “public policies aimed at enabling the population segments with greater social and economic vulnerability improve their work skills and abilities and access registered work and social security rights.
At the same time it is made clear that the benefit of covering 100% of employer contributions Companies that join the program will be paid with contributions from the National Treasure with the objective of ensuring economic and financial sustainability.
Bridge to Employment: what the program consists of
The program Bridge to Employment sought to solve the problem of moving from social plans to formal employment, providing incentives for both employers and workers. Since its creation in 2022 under the management of Sergio Massa, the goal was to convert 200,000 social plans into formal jobs.
Main features of the program:
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Duration and extension:
- It began on October 1, 2022 with an initial duration of 24 months.
- The recent extension allows companies to continue accessing benefits until December 31, 2026.
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Incentives for employers:
- 100% exemption from employer contributions aimed at social security, except for special pension regimes.
- Integration of the social plan as part of the salary: The amount of the allowance is considered as part of the salary, and the employer only pays the difference to reach the total remuneration.
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Business obligations:
- It exclusively covers the difference in salary and the cost of ART.
- Any additional rate linked to differential social security regimes is not included in the exemption.
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Protection for workers:
- If the employment contract is interrupted, workers can return to the original social program, as long as contributions to the Social Security System do not exceed 12 months.
- Those who worked between 8 and 12 months can choose between the origin program or unemployment insurance.
Source: Ambito
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