ras@lorentelopez.com
Today, May 4, 2026, the regulations for the new Labor Formalization Incentive Program (RIFL), established by Law 27,802 (Title XX), were published in the Official Gazette via Decree 315/2026.
The RIFL is a benefit that employers may choose to enroll in within a maximum of one year from its effective date; it aims to promote the hiring of workers by significantly reducing employer contributions for new hires.
The main benefit is that, for each employee hired under this program, the employer will pay employer contributions over the next 48 months with the following reduction:
- 2% (SIPA, Employment Fund, and Family Allowances)
- 3% (INSSJP – PAMI)
This represents a significant reduction compared to the current general tax rates.
This benefit applies to new hires who:
- Have not had registered employment as of December 10, 2025
- Have been unemployed in the last 6 months
- Whether they were single-tax filers
- Come from the public sector
Decree 315/2026 clarifies that, in the case of single-tax filers, they must not have had registered employment in the private sector during the past 6 months.
Employment relationships covered by this regime must begin and be registered between May 1, 2026, and April 30, 2027 (the one-year period for joining the RIFL).
It applies to employers in the private sector in general and, with respect to new employers registered with ARCA as of December 10, 2025, clarifies that they may include only up to 80% of their payroll under the program.
This regulation does not apply to the rehiring of workers who were terminated within the last 12 months, nor to employers included in the REPSAL, nor to those who engage in abusive practices (such as staff replacements, among others).
The Decree further stipulates that checks and exclusions will be carried out automatically through ARCA’s systems, and ARCA must coordinate the necessary resources.
It should also be noted that the reduction in contributions to the Labor Assistance Fund (FAL) does not apply to employment relationships covered by the RIFL, as long as the RIFL remains in effect. The obligation to contribute to the Labor Assistance Fund (FAL) remains in effect.
In addition, workers may continue to receive social assistance benefits or programs for up to 12 months from the date of their registration, as a subsidy to support their new employment.
In the event of noncompliance or exclusion by employers, benefits are forfeited, and the full amount of any omitted contributions must be paid, along with interest and penalties as stipulated by ARCA.
In conclusion, the RIFL represents a significant opportunity to reduce labor costs for new hires and promote formal employment, although it requires proper implementation to avoid future contingencies.
We are available to analyze how this applies to each specific case and to assist you in implementing the program.
