“Employment and Collective Bargaining Agreement (AENC) is not mandatory”
In the face of growing prices and a fragile economy, small and medium-sized enterprises along with self-employed individuals are the first to tighten budgets, streamline operations, and adjust to uncertainty. To support this essential economic segment, Vice President Celia Ferrero from the Self Employed Organization (ATA) responds to monthly emails with clear guidance for entrepreneurs on professional matters. All inquiries should include full name and identity details.
Do I have to apply the salary increase agreed by employers and unions to my employees?
The Employment and Collective Bargaining Agreement (AENC) is not mandatory. Instead, it offers a framework of recommendations intended to steer the four thousand five hundred and nine bargaining desks across sectors and companies toward negotiated outcomes.
Practically, the obligation hinges on the specific activity, the contract governing the relationship, and the current validity of that contract. If the contract has recently been renewed, its own salary increments, pay scales, and related terms govern the increases. If a different agreement applies and negotiations are underway, AENC recommendations will likely shape those discussions.
One of AENC’s strongest features is its adaptability: whatever is agreed can be tailored to the industry or the individual company. Contracts may adopt or deviate from these recommendations depending on local agreements and business needs.
Generally, once a contract is signed, it regulates relations within the industry, company, or region. There are also clauses allowing for flexibility if a business cannot meet the terms, provided there is a justified reason.
Understanding the salary increase process is essential. The fifth agreement proposes a 4% raise this year, 3% for 2024, and 3% for 2025, aligned with expected inflation. If inflation exceeds these figures, the increase can rise proportionally but capped at 1%. In other words, if inflation ends the year at 4.5%, the wage rise will be 4.5%; if it ends at 5.3%, the cap allows a maximum of 5%. The specific impact will vary by industry or company, depending on growth, results, and the influence of the minimum wage. Notably, retrospective effects were not planned for 2022, when average inflation reached 8.4%.
Beyond salary raises, AENC covers a broad scope with 16 chapters. It addresses extending contract periods based on production conditions if agreed, flexible pension arrangements, employment pension schemes, and a suite of recommendations designed to improve understanding between partners, employers, and employees. The framework also considers diagnostic assessments and programs to support temporary disability processes, aiming to reduce absenteeism arising from common traumas.
It is important to reiterate that AENC is not a law. Rather, it lays the groundwork for stable, conflict-free labor relations over the next three years, a development many stakeholders view positively.
I turned 65 and worked briefly as a freelancer. Am I entitled to anything?
To qualify for full retirement benefits in 2023, an individual must either be age 65 with at least 37 years contributed to either Social Security program, or combine years contributed across programs, or be 66 plus four months old with at least 15 years of contributions.
If those criteria aren’t met, there are non-contributory retirement options, subject to specific conditions. The main requirements typically involve insufficient income, reaching the legal retirement age, and having resided in the country for a minimum period.
Given the nuance of the question, consulting the Social Insurance Treasury is recommended. In particular, for women seeking pensions, there can be loopholes that allow access to contributed benefits, potentially enhanced by gender-specific supplements that improve the total aid amount.