Particle.news

Argentina Publishes Voluntary Retirement Decree to Shrink Central State

The decree formalizes a targeted exit program that offers payments to near‑retirees and aims to cut central administration headcount while putting service capacity at risk.

Overview

  • Decree 1203/2026 was published in the Boletín Oficial on Monday, October 19, and it entered into force as the new legal framework for voluntary exits from the centralized Administración Pública Nacional.
  • The enrolment window runs from November 1 to November 30, 2026, with a single possible 30‑day extension, and the Secretaría de Transformación del Estado y Función Pública is the authority in charge of implementation.
  • Applicants are limited to permanent staff and workers with open‑ended contracts in the central administration and are sorted into three age‑and‑contributions groups that determine pay options and caps.
  • Accepted exits mean immediate cessation of employment, mandatory elimination of the vacated budget posts and an eight‑year ban on returning to the national public sector, with large payouts subject to installment rules.
  • Minister Federico Sturzenegger said about 20,000 workers may be eligible, the union ATE called the plan “extortionate” and economists warn savings could be limited and public‑service capacity could be damaged after earlier large job cuts.