The scheme debuted in the private housing sector and allows for negotiating increases above the agreed minimum wage
From the Ministry of Labor, they believe that this mechanism can help generate more flexible schemes in a context of inflationary deceleration and economic recovery. The official logic aims for collective agreements to continue to exist, but with greater leeway for employers and workers to agree on particular conditions according to each situation.
The labor reform driven by the Government of Javier Milei has begun to show new concrete applications following the approval of the first collective agreement that incorporates the so-called “dynamic salary”, one of the tools included in the Labor Modernization Law aimed at introducing greater flexibility in wage negotiations.
The measure was included in the salary agreement for domestic workers, signed between the National Commission for Domestic Work and the sector's trade unions. The agreement established a cumulative salary update of 6.3% between April and July 2026, distributed in four installments, in addition to increases in non-remunerative sums and additional payments for unfavorable zones.
However, the most significant aspect of the agreement was the inclusion of a clause that allows workers and employers to negotiate wages above the minimums established in the agreement. In this way, the salaries set in collective bargaining serve as a floor and not necessarily as a ceiling for future improvements.
The tool arises from article 104 bis of the new labor legislation, which allows for the incorporation of variable or additional compensation components linked to personal merit, performance, or specific characteristics of each organization. The Government's objective is for part of the salary improvements to reflect the productive reality of each activity, company, or worker, rather than relying exclusively on uniform increases defined at the sectoral level.
The implementation has been questioned by sectors of the CGT, which argue that it could create wage disparities within the same activity. Some union leaders warned that the system promotes individual negotiations and could disrupt the traditional collective bargaining framework.
Nevertheless, the domestic workers' union defended the inclusion of the clause. Their representatives pointed out that historically many employers took the salary set in the agreement as the maximum amount to be paid, making it difficult to achieve additional improvements for workers. With the new wording, they emphasized, it is expressly established that those amounts represent only the legal minimum.
The agreement thus marks the first formal precedent for the application of the dynamic salary within the new labor framework promoted by Milei's administration and could serve as a reference for future negotiations in other sectors of the economy.
