Federico Sturzenegger addresses Argentina's formal employment decline

Federico Sturzenegger, Argentina’s Minister of Deregulation and Transformation of the State, has acknowledged a decline in formal private-sector salaried employment. However, he argued that this trend is being offset by the growth of the ‘monotributo’ (a simplified tax regime for small taxpayers).

Sturzenegger attributed this shift to changes in labor legislation, specifically the expansion of the monotributo approved via the ‘Ley Bases’, which provides a more flexible work modality with a lower tax burden. He noted that while formal salaried positions have decreased, the labor market has added approximately 500,000 jobs over the last three years. He clarified that this expansion is not merely an increase in informal employment, noting that while unregistered salaried workers rose by 190,000, non-salaried positions increased by 491,000, driven largely by monotributistas.

Regarding income, the minister stated that the salaries of monotributistas are not significantly different from those of salaried workers. He also highlighted that informal workers have seen a significant increase in real remunerations, reportedly 64% above the 2023 average.