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.
