Why a new company pays lower BPS contributions in its first years

When you open your company (a sole trader or an industria y comercio company), many expect to pay the full BPS employer retirement contribution from day one. The good news: you don't. There's a gradual contribution regime that reduces that contribution during your first years of activity, to make the start lighter. Here's how the scale works, when you reach 100%, who qualifies and why the peso amounts change every year.

What is the gradual contribution regime?

It's a benefit, set by Law 19.889 and in force since January 2021, for companies just starting activity. Instead of paying the full employer retirement contribution right away, you pay it reduced and rising over the first three years. The idea is simple: give you room at the start, when the company is still getting going and invoicing little.

The scale, year by year

BPS reduces the employer retirement contribution on a scale by 12-month blocks. The official notice puts it like this:

BPS — Notice 2/2021 (Micro and small companies, contribution reduction):

«los contribuyentes que inicien actividades a partir del 1.º de enero de 2021 y que estén comprendidos en el régimen de aportación gradual, tendrán una reducción de aportes jubilatorios patronales, de acuerdo a la siguiente escala: 1) 75 % durante los primeros 12 meses de actividad; 2) 50 % durante los segundos 12 meses de actividad; 3) 25 % durante los terceros 12 meses de actividad.»

In English: taxpayers who start activity as of January 1, 2021 and who are covered by the gradual contribution regime will have a reduction of employer retirement contributions, according to the following scale: 1) 75% during the first 12 months of activity; 2) 50% during the second 12 months of activity; 3) 25% during the third 12 months of activity.

In plain terms: during the first 12 months you get a 75% discount (you pay 25% of the contribution); in the second 12 months the discount drops to 50% (you pay 50%); in the third 12 months the discount is 25% (you pay 75%). From month 37 onwards — once the 36 months of activity are over — you pay the full employer contribution, 100%.

The months count from when you start

An important detail: the 36 months are counted continuously from the start date of activity, independent of the accounting year. It doesn't matter when your fiscal year closes or the calendar year: the clock starts the day you begin activity with BPS and runs evenly month by month until the three years are complete.

Who can use this benefit?

It applies to industria y comercio companies starting activity that pay under the minimum-VAT regime (literal E). Companies that closed and restart activity cannot use it, nor can those required to file under full accounting (contabilidad suficiente). As with any benefit with requirements, it's worth confirming your case with BPS before assuming it applies.

What is the discount applied to, and how much is it in pesos?

The reduction is specifically on the employer retirement contribution (including the owner's and dependents'). Other items, like the Fonasa contribution for health coverage, follow their own rules and are not necessarily discounted on this scale, so check your situation with BPS. Also, the minimum peso amounts are updated every year alongside the official values (the BPC), so we don't give you a fixed figure: always look at the current BPS minimum-contributions table for the year in progress.

Careful: this is not Monotributo

Don't confuse this benefit with Monotributo. Monotributo is a different regime, meant for small-scale activity, with a single flat fee that bundles taxes and contributions. The gradual scale in this article is for industria y comercio companies under minimum VAT, and it reduces the employer retirement contribution. They're separate things: if you're on Monotributo, its own rules and amounts apply.

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Frequently asked questions

• How much do I pay in year one? With the 75% discount you pay 25% of the employer retirement contribution.
• When do I reach the full contribution? From 36 months of activity you pay 100%.
• From when are the months counted? Continuously from the start date of activity, regardless of the accounting year.
• Does it apply to my sole trader? Yes, if it's industria y comercio under minimum VAT (literal E) and not excluded.
• Will you give me the exact peso amount? We don't set it here: it changes yearly with the BPC. Check the current BPS table.
• Is it the same as Monotributo? No, it's a different regime with its own rules and fees.

In short: if you open an industria y comercio company, BPS doesn't charge you the full employer contribution up front. You pay a rising scale — 25%, 50%, 75% — over the first three years, and only reach 100% after 36 months. Since the pesos change every year and there are requirements, always confirm your case and the current figures with BPS.