AGUINALDO AND SALARY: Why are more and more Argentine companies choosing to pay it in dollars?

PRESS RELEASE

In recent times, it has become increasingly difficult for Argentine companies to retain trained talent, especially in the “knowledge economy and export of services” category.

Economic instability, annual inflation reaching 150%, a dollar that exceeded 1,000 pesos, added to the possibility offered by remote work, causes many qualified hands to look abroad to be able to earn income in foreign currency.

All of this has led many local companies to begin offering dollarized salaries – totally or partially – and to grant year-end bonuses and Christmas bonuses in this currency with the aim of “seducing” – in order to retain – talents and collaborators. .

“Until a few years ago, Argentina was characterized by having highly qualified personnel at a very competitive cost worldwide. Local companies exporting services had very interesting margins for this reason. Since the pandemic and the return of exchange restrictions, salaries – especially in the IT world – began to be on par with the rest of the world due to the high possibilities of working abroad. Although we have not yet reached the values ​​of the international market and we continue to be competitive, local companies had to start considering dollarizing salaries or giving greater benefits. As we have highly qualified profiles, the demand from abroad and the turnover is enormous,” says  Paula Varak , an IT recruiter specialized in relocation.

According to figures from the Ministry of Economy, it is estimated that nearly 500,000 Argentines are freelancers who work abroad and that is why some well-known companies in Argentina openly offered this benefit, such as: Accenture, which began to pay up to 20% of the salary of its Argentine employees in dollars -, Mercadolibre, Despegar and Globant. They all pay part of their salaries in dollars at the official exchange rate.

“Companies that have legal status in Argentina must adhere to the local employment contract law, according to which up to 20% can be paid in kind, which many choose to do in dollars, digital dollars or crypto,” he says. Ramiro Raposo, VP of Growth at  Bitwage  – a pioneering platform with more than 10 years of experience in payment of fees in cryptocurrencies and digital dollars – but which also provides corporate fee payment services to companies.

According to Raposo, in the last year they have seen the number of companies come to them to hire their services increase by 100%, with the aim of “giving employees the freedom to receive salaries in a more stable and convenient currency,” he adds. . And he highlights the fact that every year in the month of December when bonuses, bonuses and prizes are paid, there is usually a 15% increase in the amount of fees processed through the platform.

The fact is that with the 20% that the local law considers – which also takes it to the official dollar -, it is not enough to seduce this highly demanded sector, which historically had a profile of a blank wage earner but who today prefers to abandon the comfort of the relationship of dependency and venture into being a freelancer or contractor and working abroad. Furthermore, in this way, although they must learn to deal with the needs of being self-employed, they avoid the 35% tax that would be withheld from a paycheck.

This is how many companies that need qualified collaborators not only adjust to the new salary levels but must also manage to ensure that their collaborators receive cash, turning to stable cryptocurrencies that play a crucial role in this game.