Milei’s labor reform is approved in the Chamber with changes; text will return to the Senate

Milei’s labor reform is analyzed by the Chamber of Deputies The Argentine Chamber of Deputies approved, with changes, the labor reform proposed by Javier Milei’s government. Of the deputies, 135 voted in favor and 115 against. The text will need to return to the Senate, where it had been approved last Thursday, as the government needed to remove the topic that reduced workers’ salaries by 50% in cases of accidents outside the workplace. Seen as one of the broadest reforms in Argentine labor legislation since redemocratization, the proposal aims to update rules considered rigid and outdated, reduce labor costs and encourage the creation of formal jobs, according to the government. 📱Download the g1 app to see news in real time and for free. Critics say the changes could weaken labor relations, increase job insecurity and weaken unions, especially among less qualified workers. The moment is one of the most decisive of the Milei government since taking office in December 2023. The measure is part of a package of reforms aimed at macroeconomic stabilization and stimulating investment. Among the changes that remain are the flexibility of vacations and working hours of up to 12 hours. The expectation is to approve the final text by March 1st. (see the main changes below) Opposition parliamentarians discuss with the president of the Argentine Chamber of Deputies REUTERS/Alessia Maccioni Heated debates The session began at 2 pm (local time), after a request sent to the president of the House, Martín Menem. The session was marked by confusion and exchange of provocations in the plenary. The head of the Union for the Fatherland bloc, Germán Martínez, criticized the conduct of the work and even provoked the president of the House with the phrase “Grow up, Mr. President”, in addition to stating that the parliamentarians “will regret” the decision. Later in the night, around 9:30 pm, deputy Marcela Mango, from the União pela Pátria party, requested a point of order, which was denied, for the labor reform project to return to the committee. In counterattack, Silvana Myriam Giudici asked for a point of order so that the proposal could be voted on in half an hour. The motion was accepted. Protesters take part in a protest in front of the Argentine National Congress on the day that legislators discuss the labor reforms proposed by the libertarian government of President Javier Mile REUTERS/Agustin Marcarian The reform was approved by the Senate in the early hours of last Thursday (12), with 42 votes in favor and 30 against, after a session marked by polarization. The previous day (11), thousands of demonstrators gathered outside the Congress, in Buenos Aires, to protest against the proposal. The acts ended in clashes with the police, and around 30 people were arrested, according to the France Presse news agency. This Thursday, the Ministry of Security announced extraordinary measures for the press and warned of possible risk situations. The ministry recommended that journalists avoid staying between possible sources of confrontation and the security forces and informed that an “exclusive zone” will be created for coverage on streets side of the square in front of Parliament. Argentina has a general strike against labor reform this Thursday; Milei promises repression Main planned changes Among the changes are the flexibility of vacations — which can be divided into minimum periods of seven days and negotiated outside the traditional interval — and the possibility of extending the daily working hours from eight to up to 12 hours, as long as the minimum rest period is respected. The government negotiated around 30 changes to the original text to ensure quick approval in the Chamber of Deputies. Below, the main points of the reform provide: More flexible holidays, which can be divided into minimum periods of seven days and negotiated outside the traditional period (normally from October 1st to April 30th); Restrictions on strikes in sectors considered essential: the reform requires a minimum service provision of between 50% and 75%, which limits the power of unions to strike; Expansion of the trial period to up to six months — reaching eight or 12 in some cases —, with reduced compensation; Flexibility in working hours, increasing from 8 to up to 12 hours per day, as long as the minimum rest period is respected, allowing compensation depending on periods of greater or lesser demand, without paying overtime; Changes in collective bargaining, with permission for direct agreements between companies and local unions, to the detriment of national conventions; Changes in compensation and dismissals, with a reduction in the calculation of compensation and the possibility of payment in installments (up to six installments for large companies and up to 12 for small and medium-sized companies); Combating informality: the proposal eliminates fines for lack of labor registration and creates mechanisms for “regularizing” employment relationships, but prohibits the hiring of monotax workers (regime for self-employed people) in roles that should be formal work, with a dependency relationship. In the digital sector, application workers are now formally recognized as self-employed, with their own rules and protection insurance. Teleworking no longer follows additional obligations established during the pandemic. In addition to the more controversial issue of reducing salaries, the government also removed the article that allowed paying salaries in foreign currency or through digital wallets — such as those on Mercado Pago — as they did not offer the same guarantees as traditional banks, supervised by the Central Bank. The Argentine labor market Data from the Permanent Household Survey (EPH) of the National Institute of Statistics and Censuses (Indec), referring to the third quarter of 2025, indicate that Argentina had 13.6 million employed people and around 1 million unemployed people — an unemployment rate of 6.6%. The economically active population totaled 15.4 million, equivalent to 51.4% of the total population. Among workers, 71.9% were salaried, but only 63.3% had formal employment with social security contributions. Adding the self-employed, informality reaches around 43% of the market. The service sector accounts for approximately 70% of jobs, followed by industry and construction (22%) and agriculture (8%). Furthermore, more than a quarter of those employed work more than 45 hours a week, indicating long working hours. Protests against the government in Argentina

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