President Mauricio Macri will this week sign off on a decree to establish a voluntary termination scheme for public workers.
The measure is aimed at reducing the size of government which the Macri administration sees as a crucial component in its fight to reduce public spending and rein in the tax deficit.
But the voluntary terminations will come at a cost: the State will be forced to pay compensation equivalent to 24 to 36 months of a worker’s wages.
The scheme will include employees at ministries and decentralised public institutions like PAMI, the ANSES welfare office and the AFIP tax bureau.
There are around 208,000 permanent public workers but it is estimated that only 80,000 would be eligible to adhere to the scheme, according to the Modernisation Ministry.
Armed Forces, AFI intelligence agents, teachers, health workers, diplomatic corp and scientists will be excluded from the programme designed by Modernisation Minister Andrés Ibarra, Treasurer Nicolás Dujovne and outgoing AFIP tax boss Alberto Abad.