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Companies in Argentina Required to Provide Paid Daycare Benefit by 2023

Starting in March 2023, companies with over 100 employees in Argentina will be required to provide employees with access to paid daycare services as a mandatory benefit.   

In the aftermath of a Supreme Court order spurring implementation, Argentina implemented changes to the country’s labor codes requiring all companies with over 100 employees - including multinational corporations – to provide a fully paid childcare benefit for employees.  The mandate will apply to remote workers, in unionized settings, as well as dependent workers at the establishment.  Details include: 

  • The daycare requirement is for children between the ages of 45 days and three years old. 

  • Applies to companies regardless of the facility or working conditions; 

  • The daycare must be within 1.2 kilometers from the facility; 

  • Employers in close proximity may join together to provide a joint childcare facility for their employees; 

  • Daycare centers must comply with regulatory requirements; 

  • CBAs can address the childcare service requirement by providing for the non-taxable reimbursement of childcare costs that must cover the lesser of either the (a) actual childcare costs or (b) 40% of the monthly minimum wage for caregivers; and

  • For remote workers, a reimbursement scheme can be established to satisfy the requirements. 

For multinationals in Argentina, setting up the appropriate daycare facilities or working to provide access through an existing daycare company needs to be a near-term priority. It is worth noting that since 2021, employers have been able to secure a tax deduction for employee childcare reimbursement, though there appear to be some limits on the amounts.   

HR Policy Global’s Take:  In many cases, childcare presents a barrier of entry for women in the workplace.  Argentina aims to correct this with the mandatory benefit discussed above. Companies in Argentina need to work to get this implemented before the March 2023 deadline or face penalties.  Further, companies should consult with local tax experts to understand any deductibility of paid childcare expenses.

Published on: May 18, 2022

Authors: Henry D. Eickelberg

Topics: Latin America

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