Tax benefits for companies that hire young people between 18 and 30 years old: what are the advantages

The opposition in the National Congress continues to promote economic projects in order to mitigate the tax burden to various sectors; and in this sense, radicalism presented an initiative that proposes a regime of tax incentive especially with respect to employer contributions.

In general terms, The bill proposes to exempt companies that hire young people between 18 and 30 years of age from paying employer charges by 100% the first six months, 75% from the seventh month of the year, 50% from 13 to 18 months and 25% from 18 to 24 months.

But in addition, the initiative also raises tax benefits longer in time for those cases where the young person hired is receiving academic training. In these cases, the payment of the employer charges 100% the first 12 months, 75% up to 24 months, 50% from 24 to 36 months and 25% up to the fourth year.

“What we are proposing in the bill is the creation of a system of specific special incentives within the framework of employer contributions. It is a tax incentive regime with the idea that those companies or employers, civil associations, foundations, NGOs, and all the different types of forms of legal persons that hire young people between 18 and 30 years old, who do not have a formal job today and that also does not reduce the payroll of workers already existing in that organization, once they are hired, they access this tax incentive regime”, explained to iProfesional the national deputy of the Radical Evolution bloc -which answers to Martín Lousteau- Danya Tavela.

The national legislator added that the objective of this fiscal incentive regime points to three windows:

– “The first is to ensure that young people between 18 and 30 years of age, who are the ones with a high number of informality in their jobs and high numbers of unemploymenthave a chance to have a genuine and formal job”.

The opposition in Congress continues to promote economic projects to mitigate the tax burden on various sectors

– “The second has to do with the fact that in addition to the workedtraining for young people is favored, because a problem that we are going to find ourselves with when we get out of this crisis in which Argentina finds itself and we can start to generate genuine employment, is going to be that our young people are going to have a training that is very deficient or very less than what is wanted to enter the world competitively”.

– “And the third issue has to do with companies finding incentives to generate job and hire people,” Tavela said in an interview with this medium.

Who accompanies this work incentive project

The bill, which consists of 11 articles and proposes in the first to create “the Regime of Work Incentive for Youth, which aims to encourage the incorporation of young people into formal employment and encourage educational completion and training and/or training in a trade and/or profession”, has the support, not only of radicalism (Radical Evolution) , but also bears the signatures of legislators from the PRO bloc, from the Federal Encounter bloc (led by Margatita Stolbizer) “and I understand that it will have the support of the Frente de Todos, because it is a project that does not harm anyone and that favors much to the insertion of our young people”, considered the promoter of the initiative.

“I am already talking with some members of the commission where that project derives. It still does not have the budget transfers but I have already been talking with some of the members of those commissions and some deputies of the Front of All and the federal Peronism to achieve the accompaniment“Detailed Danya Tavela.

The new radicalism project in Congress, which entered both chambers in the last few hours, has already garnered some criticism or doubts as to whether it is viable and tax cost that it may entail, so the legislator asked to clarify that point:

“It is important to clarify that the project has no tax costbecause it is all generation of new employment, that is to say, it is all income that you are not receiving as a treasury, there is no one who today is contributing for young people who do not have contracts… that is why I believe that this project is an opportunity to create genuine employment and to do it in a way that does not harm the treasury, but instead encourages opportunities for improvement for the employer and for young people,” he explained.

On the other hand, in addition to the adhesions that they are looking for in Congress to discuss and approve the bill, the deputy assured that they also aspire to have “social accompaniment”, and in this context she explained that the opposition meets permanently with the productive and business sector.

“We are working and deepening that work with business sectors, some unions, youth organizations… It is an issue that is on the public agenda because even the City put out a very similar program, and it seems to me that it is important to be able to work on it and generate those essential consensuses so that it can be dealt with,” explained the national legislator.

The project proposes to exempt from the payment of employer charges companies that hire young people between 18 and 30 years old

In turn, the radical deputy assured that she is willing for her project to undergo modifications in order for it to be treated on the premises: “The project can also be improved, why not -he asked himself- and one has to understand that it is precisely the collective consensus that allows us to do things better, so we hope to be able to generate debate in the different commissions so that the project comes out better than what is planned“, he claimed.

This is a bill that Radical Evolution had already promised in the campaign, as a result of its tours in all the provinces of the country where the testimonies of employers were similar and repetitive: “I would like to hire people, but the truth is that The costs are very high.”

Other points of the bill

On the other hand, the bill that proposes a regime of tax incentive for companiesclarifies in its article 6 that in addition to hiring young people between 18 and 30 years of age to access benefits, they must not have reduced their payroll.

“To access the benefit regulated in the third and fourth article, Micro, Small and Medium Enterprises, large private sector companies, commercial companies, cooperatives, civil society organizations, rural employers and the human person who has a domicile in Argentina, can reduce their payroll of workers six (6) months before hiring a new worker through this regime, unless said decrease is due to a decision of the worker”, reads the text of the initiative presented.

In turn, in its article 10, it adds: “The enforcement authority, together with the Ministry of Labor, must monitor the Labor Incentive Scheme for Youth, collect relevant information on participants, employers, duration of labor relations, as well as generate indicators that allow monitoring, adaptation, extension or any other measure that allows achieving the objectives of this law“.

Finally, in the foundations of the initiative, emphasis is placed not only on the generation of youth employmentbut in their academic training, and in that sense, they argued: “The problem for the Social insertion of our youth will not be reached when they access a formal work, but we must also motivate, encourage and encourage them to finish their secondary studies, but also to continue their tertiary, university and professional training studies in institutes. In this way, each worker will be able to acquire the pertinent skills to correctly carry out their work; as well as being prepared for the needs and particularities of the labor and social world”.

“Generating genuine work implies giving young people not only a economic remuneration but it also entails promoting the culture of work, guaranteeing inclusion in the economy, promoting education, human dignity and the economic, social and family development of Argentine youth”, they closed.

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