Argentina removes 2% cap on union contributions in labor reform

On July 17, President Javier Milei, cabinet chief Diego Santilli and labour minister Sandra Pettovello signed decree 612/2026, published in the Boletín Oficial. The decree eliminates the 2 % ceiling that had limited extraordinary employer contributions to unions, expanding the margin for negotiation between syndicates and business chambers. It also defines the calculation base for union contributions: only the basic conventional salary and normal, habitual monthly remuneration are included, while overtime, bonuses, aguinaldo, plus‑vacational pay and other non‑regular items are excluded. Contributions agreed between employers and unions must be administered in separate accounts and may be used solely for social, assistential, pension or cultural purposes for workers. Union leaders, including the CGT, view the change as a recovery of financing tools, whereas the CTA and other groups criticize it as a restriction on collective action.