Our partner, Jorge Arredondo, referred to the recent ruling issued by the Labor Directorate that instructs companies to pay the retroactive differential corresponding to the new minimum wage.
The Labor Directorate issued Ruling No. 447/13 which establishes the meaning and scope of Law No. 21,751, published in the Official Gazette on June 28, 2025, which adjusts the amounts of the Minimum Monthly Income (IMM), the Family and Maternity Allowance and the Single Family Allowance.
According to the ruling, as of May 1, 2025, the MMI for workers over 18 years of age and up to 65 years of age will increase to $529,000 pesos, rising again to $539,000 pesos as of January 1, 2026. For workers under 18 and over 65 years of age, the amounts will be $394,622 pesos as from May 2025 and $402,082 pesos as from January 2026. Meanwhile, for non-remunerative purposes, the values will be $340,988 and $347,434 pesos, respectively, on the same dates.
The opinion also confirms the retroactive nature of the law, establishing that the new figures are effective as from May 1, 2025, the date prior to the official publication, and reminding that employers must adjust the base salaries of their workers to guarantee the legal remuneration floor. It also emphasizes the obligation to readjust eventual differences in bonuses, in accordance with article 50 of the Labor Code.
The Labor Directorate instructs employers to regularize also the declarations and payments of social security contributions as required by the Superintendence of Pensions.
Jorge Arredondo, Lead Partner of Albagli Zaliasnik’s Labor Group, commented on the ruling that “the confirmation of the retroactive nature of Law No. 21,751 underlines the importance for companies to rigorously plan the management of remunerations and contributions, anticipating adjustments that directly impact their liquidity and labor compliance. This type of provision requires not only knowledge of the regulation, but also agile internal processes and control systems that allow these changes to be applied without delay, avoiding legal contingencies and strengthening the confidence of workers in their employers”.
Check the press appearances:
Portal Innova, July 02. [See here].
