In a pivotal update amid union opposition and provincial tensions, the Argentine government announced the removal of the controversial Ganancias (income tax) chapter from its labor reform bill ahead of Wednesday's Senate debate. Patricia Bullrich presented the final version, agreed with allied blocs, to facilitate approval and half-sanction.
Building on recent government confidence and negotiations that strengthened its Senate bloc despite fierce union backlash—including a CGT march—the labor reform bill promoted by Javier Milei's administration reaches the Senate on February 11, 2026. Senator Patricia Bullrich detailed the final version in a 3 p.m. press conference alongside La Libertad Avanza legislators.
The standout change is the removal of the Ganancias article, previously a flashpoint with governors over its status as a coparticipable tax. Though initially slated to remain, its withdrawal clears a path for passage. Bullrich highlighted a 'very solid agreement' with dialoguista legislators and a strong vote count for general and particular sanctions.
Key provisions include reforms to overtime and a 'bank of hours' system: under modified article 197 bis, employers and workers can agree in writing on compensation with limits and oversight. Collective bargaining can set maximum workdays, ensuring 12 hours rest between shifts and 35 weekly hours, using the bank to balance workloads without exceeding legal caps.
Dismissal indemnities remain but with a narrower base, excluding bonuses, vacations, overtime, awards, and commissions. A Labor Assistance Fund, financed by pensions and mandatory, caps claims to statutory amounts, barring additional damages. Fixed-term contract indemnities are limited to seniority pay until term end.
A tweak to solidary contributions has divided business groups like CAME and CAC. Bullrich rebuked Governor Axel Kicillof's opposition and march participation: 'Kicillof, instead of going to the march, get to work and set an example. Less marches and more management.'
The government eyes a March fiscal pact with provinces for tax reforms, aligning national and provincial cuts.
