If you lose your job in Argentina, you can apply for an unemployment benefit. Benefits are payable in the event you do not have another job or receive other benefits. You have 90 days to apply from the date employment is terminated. The level of benefits is calculated on a base of 41.5% of the highest net monthly wage received in the previous six months. The amount paid will not exceed AR$ 300 or be less than AR$ 150/month. The amount of time for which you are entitled to unemployment benefit is based on the total time you have been working. If you have a family or other persons that depend on your income, an additional family benefit can be applied for.
Retirement, Pensions & Disability
In Argentina there are two retirement programs: Régimen Previsional Público ( RPP or Sistema de Reparto) and the Régimen de Capitalización ( Sistema Mixto or RCI). The RPP or Reparto is the retirement program managed by the State. The Sistema Mixto or RCI is run by private retirement funds and supervised by the State. When starting to work for the first time in Argentina you have 90 days to decide which one of two different retirement systems you want your contributions to go to. If after 90 days no decision has been made, you will be assigned to the RCI program and not be able to switch to the Reparto program. Employees are free to choose their private retirement fund and allowed to change among them.
The Reparto system covers the following issues:
- Basic Retirement Program (Prestación Básica Universal or PBU): To qualify for basic retirement, men have to be 65 years of age, women 60 years of age, and have been enrolled for at least 30 years in the current or previous retirement programs.
- Disability Retirement Program ( Retiro por Invalidez): Entitlement to the disability program is based on the individual being judged to be at least 66% mentally or physically disabled and have not yet reached the retirement age.
- Pensions for deceased members ( Pensión por Fallecimiento de un Afiliado): If a member dies, the following persons have the right to a pension: the widow, widower or partner of the deceased, single children up till 18 years of age that are not receiving any other benefits. Disabled children do not have an age limit as long as they were taken care of by the deceased.
- Pensions for diseased retirees ( Pensión por Fallecimiento de un Beneficiario): If a retired member dies, the following persons will receive a pension: the widow, widower or partner of the deceased, single children up till 18 years of age that are not receiving any other benefits. Disabled children do not have an age limit as long as they were taken care of by the deceased.
- Retirement for advanced age ( Prestación por Edad Avanzada): Members that have a right on this retirement must: be at least 70 years of age (regardless of gender) and have been a scheme member for at least 10 years, five of which must have been during the previous eight years
The RCI System covers the following issues:
Common Retirement (Jubilación Ordinaria)
In order to qualify for standard retirement the member has to be 65 years of age for men and 60 for women. This type of retirement benefit can be received in three different ways:
- Renta Vitalica Previsional
- Retiro Programado
- Retiro Fraccionado
The Renta Vitalica Previsional means that an individual contracts a retirement insurance company (purchase of annuity). This company will pay the individual (and/or entitled dependents) a monthly amount until death.
Retiro Programado means that the individual can withdraw a previously agreed upon, fixed monthly amount from the total deposit generated over the years. This program is best compared to a savings program managed by the State Office for Retirement and Pensions ( Administradora de Fondos de Jubilaciones y Pensiones, AFJP).
Retiro Fraccionado means that when the beneficiary receives a retirement of less than 50% of the maximum state run Prestación Básica Úniversal (PBU), he/she is entitled to the equivalent of 50% of PBU until his/her deposit is used up. The individual will have to be registered at the AFJP.
Disability Retirement Program (Retiro por Invalidez)
Entitled to the disability program are those members that became for at least 66% mentally or physically disable to work and have not yet reached the retirement age.
Pension for Deceased
When retirees, recipients of disability benefits or members die, the following persons are entitled to a pension:
- The widow/ widower
- Single children until the age of 18 that are not receiving any other benefits. Disabled children can continue to receive benefits if the deceased was the principle carer.