Argentina’s congress passes Milei’s labor reform bill amid fierce protests, heads to Senate for final approval

In a contentious overnight session on Friday, February 20, 2026, Argentina’s Chamber of Deputies approved President Javier Milei’s sweeping labor reform package. The legislative victory came after nearly ten hours of intense debate, concluding with 135 votes in favor and 115 against the general text, with no abstentions recorded.

The government swiftly celebrated the approval on its official X account, touting the legislation as a “structural reform” promised by President Milei. Officials stated the bill aims to “put an end to more than 70 years of delay in Argentine labor relations,” signaling a new era for the country’s workforce dynamics.

However, the journey for the reform is far from over. Significant amendments made by the deputies, most notably the elimination of an article concerning medical leave, mean the bill must return to the Senate. This legislative body had previously approved an earlier version of the text, setting the stage for another round of deliberation:

• A key amendment removed provisions regarding medical leave.
• Deputies are still in session, voting on specific sections of the bill.

Milei administration hails ‘structural reform’

The Milei administration firmly believes this reform will stimulate foreign investment and significantly boost the creation of formal employment across Argentina. Supporters argue that the nation’s existing labor legislation, largely unchanged since 1974, is severely outdated and struggles to cope with the profound transformations in the global job market over the past five decades.

The government emphasizes that technological advancements, including the rise of computing, information technology, and mobile communication, have both created new professions and rendered others obsolete, necessitating a comprehensive legal overhaul. A core tenet of the reform is to reduce business costs and encourage the formalization of work in a country where approximately 40% of the workforce currently operates informally.

Opposition decries threat to workers’ rights

Conversely, the opposition has vehemently criticized the package, arguing that it jeopardizes long-established labor protections for Argentine workers. A central point of contention revolves around the proposed reduction in severance pay, which opponents view as a direct assault on acquired rights and a move that will leave employees more vulnerable.

Máximo Kirchner, a prominent deputy from the Unión por la Patria party, voiced strong disapproval, accusing the president of prioritizing “foreign interests” over the well-being of the Argentine people who elected him. Kirchner linked the legislation to international financial bodies, stating, “This law appears to be a new whim of the IMF to which the president cannot say no, or the country will collapse. Voting in favor of this law is voting for failure.”

Violent clashes erupt outside legislative palace

The intense legislative debates inside the Congress building were mirrored by heated protests outside. Throughout the afternoon, demonstrators gathered on Avenida Rivadavia in Buenos Aires, attempting to breach a police blockade established by Federal Police and Gendarmerie forces between Congress Square and the Legislative Palace.

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Clashes escalated as protesters reportedly launched Molotov cocktails at security agents guarding the Congress. Police responded with tear gas, rubber bullets, and water cannons to disperse the crowds. Local media, including the Argentine newspaper Clarín, reported that 12 individuals were arrested amidst the unrest.

Marathon session and political maneuvering

Inside the legislative chambers, the session was marked by significant political maneuvering. Kirchnerist deputies made concerted efforts to impede the bill’s progress, employing various tactics to delay the vote. In contrast, lawmakers aligned with the ruling party, La Libertad Avanza, sought to accelerate the proceedings, initially attempting to shorten the list of speakers.

Ultimately, a compromise was reached, allowing all deputies who wished to speak to do so, which extended the discussions deep into the early morning hours. Notably, Karina Milei, the president’s sister and Secretary-General of the Presidency, and Economy Minister Luis “Toto” Caputo were present in Congress, receiving applause from pro-government deputies for their attendance.

Key provisions of the labor reform bill

The comprehensive labor reform package introduces several pivotal changes designed to reshape Argentina’s employment landscape. These modifications touch upon various aspects of worker-employer relations and are central to the government’s modernization agenda:

• The bill flexibilizes hiring rules and introduces alterations to the existing vacation system.
• It permits the extension of the standard workday from eight to twelve hours, offering greater operational flexibility for companies.
• A significant provision authorizes the payment of salaries in foreign currency, providing new options for compensation.
• New limits are established on the right to strike, setting minimum requirements for essential service continuity during labor stoppages.
• The calculation of severance pay for contract termination is simplified, reducing costs for employers by excluding bonuses not part of a worker’s regular salary from the formula.

What happens next for the landmark legislation

With the Chamber of Deputies approving the modified labor reform package, the legislation now faces another critical juncture in the Senate. As the upper house had previously given its assent to an earlier version of the bill, it must now review the specific alterations made by the deputies.

The process demands that the Senate either ratify the changes or insist on its original text, potentially prolonging the legislative battle. This back-and-forth underscores the deeply divided political landscape surrounding Milei’s ambitious reform agenda.

A look at current labor landscape

Argentina grapples with a significant informal economy, with a substantial portion of its workforce operating outside formal labor regulations. The government’s reform explicitly aims to address this challenge, seeking to reduce the 40% informal labor rate by incentivizing formal employment through reduced employer burdens and more flexible hiring conditions.