Argentina and Colombia announce new payroll and severance fund reforms

Argentina's government has introduced a redesigned payroll receipt that details every component of an employee's remuneration, including gross salary, deductions, employer contributions and the net amount. The new format also obliges employers to disclose the total labor cost they bear for each worker, enhancing transparency of social security and union contributions. Minister Federico Sturzenegger highlighted that the digital‑first system will make the information readily accessible to workers.

Colombia's Ministry of Labor has presented a draft decree allowing employers to remit severance (cesantías) contributions on a monthly, voluntary basis rather than the current annual deadline of February 14. The proposal sets a monthly contribution rate of 8.33% of the base salary (including transport allowance) and maintains workers' right to receive interest, which could also be paid monthly at 1% per month. The change aims to provide greater liquidity for employees, though experts warn it may increase administrative burdens for smaller firms.