Employer of Record Guide in Argentina
Navigating Argentina's dynamic hiring landscape requires understanding complex labor laws, tax obligations, and cultural nuances that can make or break your expansion plans. Our comprehensive guide cuts through the complexity to help you hire top Argentine talent compliantly and confidently.
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Argentina's thriving tech sector and skilled workforce make it an attractive destination for global companies, with major hubs like Buenos Aires leading innovation across software development, data analytics, and emerging technologies. Understanding the market fundamentals—from tax structures to talent availability—is your first step toward successful expansion.
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Your EOR guide in Argentina
From minimum wage requirements to mandatory bonus payments, Argentina's employment framework has unique characteristics that demand careful attention to detail. This practical guide walks you through every compliance requirement, ensuring you can focus on building your team rather than navigating bureaucratic hurdles.
Minimum Wage
Argentina's national minimum wage is set by the government and adjusted periodically. As of 2024, the minimum wage is approximately ARS 234,315 per month (roughly CAD $350-400, depending on exchange rates).
Note: Argentina experiences significant inflation, and minimum wage rates are adjusted frequently. Always verify current rates with AFIP (Federal Administration of Public Revenues) before making employment decisions.
Payroll Cycle
- Monthly: Most common payment frequency in Argentina
- Bi-weekly: Less common but permitted
- Payment Date: Salaries must be paid by the 4th business day of the following month
Individual Income Tax
Argentina uses a progressive tax system with rates ranging from 5% to 35% for residents:
| Income Bracket (ARS annually) | Tax Rate |
|---|---|
| Up to ARS 2,674,240 | 5% |
| ARS 2,674,241 to ARS 4,005,360 | 9% |
| ARS 4,005,361 to ARS 5,336,480 | 12% |
| ARS 5,336,481 to ARS 6,667,600 | 15% |
| ARS 6,667,601 to ARS 8,891,200 | 19% |
| ARS 8,891,201 to ARS 13,336,000 | 23% |
| ARS 13,336,001 to ARS 17,782,400 | 27% |
| ARS 17,782,401 to ARS 26,672,000 | 31% |
| Over ARS 26,672,000 | 35% |
Note: Tax brackets are adjusted annually for inflation. Non-residents are taxed only on Argentine-source income.
Tax Residency Criteria
Individuals are considered Argentine tax residents if they:
- Reside in Argentina for more than 12 months within an 18-month period
- Have their centre of vital interests in Argentina
- Are Argentine citizens living abroad without proving tax residency elsewhere
Employer Payroll Contributions
Argentine employers must make substantial social security contributions on behalf of employees:
| Contribution Type | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Pension System (SIPA) | 10.17% | 11% | 21.17% |
| Social Health Insurance | 6% | 3% | 9% |
| Family Allowances | 4.44% | - | 4.44% |
| Unemployment Insurance | 0.89% | - | 0.89% |
| Work Risk Insurance (ART) | 0.5% - 3% | - | 0.5% - 3% |
| Total Employer Contributions | ~22% - 24% | 14% | ~36% - 38% |
Note: Rates may vary slightly based on company size and industry. Additional contributions may apply for certain sectors.
Working Hours
- Standard Work Week: 48 hours maximum (8 hours per day, 6 days per week)
- Office Workers: Typically 44 hours per week (8 hours per day, Monday to Friday, plus 4 hours on Saturday)
- Night Work: Reduced to 7 hours per day maximum
- Dangerous Work: May be limited to 6 hours per day
Overtime Pay
- Weekday Overtime: 50% premium for the first 2 hours, 100% premium thereafter
- Saturday Overtime: 50% premium (if not part of regular schedule)
- Sunday/Holiday Work: 100% premium
- Night Work Premium: 20% additional pay for work between 9 PM and 6 AM
Bonus Payments
Argentina mandates two annual bonus payments:
- 13th Month Bonus (Aguinaldo): Paid in two instalments (June and December)
- Calculation: 50% of highest monthly salary in each semester
- Vacation Bonus: Additional payment when taking annual leave
Vacation Leave
Annual vacation entitlement increases with tenure:
| Years of Service | Vacation Days |
|---|---|
| 6 months - 5 years | 14 calendar days |
| 5 - 10 years | 21 calendar days |
| 10 - 20 years | 28 calendar days |
| Over 20 years | 35 calendar days |
- Vacation Pay: Regular salary plus 50% vacation bonus
- Timing: Must be taken between October 1 and April 30 (unless otherwise agreed)
Sick Leave
- Paid Sick Leave: 3 months per year for employees with less than 5 years of service; 6 months for those with 5+ years
- Medical Certificate: Required for absences over 1 day
- Chronic Illness: Extended leave provisions apply for serious medical conditions
Maternity Leave
- Duration: 90 days total (45 days before birth, 45 days after)
- Extension: Can be extended to 180 days in case of complications
- Pay: 100% of salary, funded by social security
- Job Protection: Position must be held for up to 1 year
Paternity Leave
- Duration: 2 days for birth, 15 days for adoption
- Pay: 100% of salary
- Timing: Must be taken within 30 days of birth/adoption
Other Statutory Leave
- Marriage Leave: 10 days
- Bereavement Leave: 3 days for immediate family
- Study Leave: For employees pursuing education
- Union Activities: Time off for union representatives
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Vacation | 14-35 days/year | Yes + 50% bonus | Employer |
| Sick Leave | 3-6 months/year | Yes | Social Security |
| Maternity Leave | 90-180 days | Yes | Social Security |
| Paternity Leave | 2-15 days | Yes | Employer |
| Marriage Leave | 10 days | Yes | Employer |
| Bereavement | 3 days | Yes | Employer |
Termination Types
Termination With Cause (Despido con Justa Causa):
- No severance required
- Must be based on serious misconduct defined in the Labour Contract Law
- Requires formal notification and documentation
Termination Without Cause (Despido sin Justa Causa):
- Most common form of termination
- Requires severance payment and notice
Mutual Agreement:
- Negotiated termination with agreed compensation
- Must be formalized before labour authorities
Notice Period Requirements
- Standard Notice: 15 days for employees with less than 5 years of service; 30 days for 5+ years
- Payment in Lieu: Employers can pay instead of providing working notice
- Immediate Termination: Allowed with proper severance payment
Severance Pay
Severance calculations are complex and include multiple components:
Basic Severance:
- 1 month's salary per year of service
- Minimum 2 months' salary regardless of tenure
Additional Payments:
- Proportional 13th month bonus
- Proportional vacation pay plus 50% bonus
- Notice period payment (if not given)
Example Calculation (3 years of service, ARS 500,000 monthly salary):
- Basic severance: ARS 1,500,000 (3 months)
- 13th month: ARS 250,000 (proportional)
- Vacation: ARS 125,000 (proportional + bonus)
- Total: Approximately ARS 1,875,000
Probationary Periods
- Duration: Up to 3 months (can be extended to 6 months by collective agreement)
- Termination: Either party can terminate with 15 days' notice
- Conversion: Automatically becomes permanent employment after probation period
Final Pay Requirements
- Timeline: All payments must be made within 4 business days of termination
- Documentation: Detailed settlement statement required
- Labour Ministry: Termination must be registered with labour authorities
National Public Holidays
| Holiday | Date | Type |
|---|---|---|
| New Year's Day | January 1 | Fixed |
| Carnival Monday | February/March | Variable |
| Carnival Tuesday | February/March | Variable |
| Memorial Day | March 24 | Fixed |
| Maundy Thursday | March/April | Variable |
| Good Friday | March/April | Variable |
| Labour Day | May 1 | Fixed |
| May Revolution Day | May 25 | Fixed |
| Flag Day | June 20 | Moveable |
| Independence Day | July 9 | Fixed |
| San Martín Day | August 17 | Moveable |
| Columbus Day | October 12 | Moveable |
| National Sovereignty Day | November 20 | Moveable |
| Immaculate Conception | December 8 | Fixed |
| Christmas Day | December 25 | Fixed |
Holiday Pay Rules
- Working on Holidays: Double pay plus compensatory day off
- Moveable Holidays: Moved to create long weekends for tourism promotion
- Religious Holidays: Additional days may apply for specific religious communities
Required Documents
Employment Contract:
- Must be in writing for contracts over 30 days
- Include job description, salary, working hours, benefits
- Specify probation period if applicable
Government Registration:
- CUIL/CUIT: Tax identification number
- Labour Book: Employment history record
- Social Security Registration: With ANSES and health insurance
Personal Documentation:
- National ID (DNI) or passport for foreigners
- Proof of address
- Educational certificates (if required for role)
- Medical examination (for certain positions)
Work Authorization
Argentine Citizens: No restrictions
Foreign Workers:
- Work visa required before employment
- Temporary residence permit for employment
- Permanent residence after 2-3 years of temporary status
Documentation Process:
- Visa application at Argentine consulate
- Criminal background check from home country
- Medical examination
- Proof of employment offer
Tax Registration
- AFIP Registration: Mandatory for all employees
- Tax Category: Determines withholding rates
- Monthly Declarations: Employer must file monthly returns
Social Security Enrollment
- Health Insurance: Mandatory enrollment in obra social
- Pension System: Automatic enrollment in SIPA
- Family Allowances: Registration for eligible benefits
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work visa application (if needed) | 30-60 days |
| Employment contract signed | Day 1-3 |
| Government registrations | Day 1-5 |
| Social security enrollment | Day 1-7 |
| Payroll setup | Day 5-10 |
| First payment | Month 1 |
Worker Classification
Argentina has strict rules distinguishing employees from contractors:
Employees (Relación de Dependencia):
- Subject to employer control and direction
- Entitled to all labour law protections
- Employer handles tax withholdings and social security
Independent Contractors:
- Provide services autonomously
- Invoice for services (factura)
- Responsible for own taxes and social security
Misclassification Risks:
- Labour authorities presume employment relationship exists
- Penalties include back payments of social security contributions
- Potential criminal liability for tax evasion
Union Relations
Argentina has strong union traditions:
- Collective Agreements: Many industries covered by sector-wide agreements
- Union Dues: Automatically deducted from union members' salaries
- Strike Rights: Constitutionally protected
- Workplace Representatives: Unions can appoint delegates in larger workplaces
Cultural Considerations
Work-Life Balance:
- Long lunch breaks (1-2 hours) are common
- Late working hours (9 AM - 6 PM typical)
- Strong emphasis on personal relationships
Communication Style:
- More formal than North American standards
- Hierarchy respected in workplace interactions
- Personal connections important for business success
Economic Considerations:
- High inflation affects salary negotiations
- Currency controls may impact international payments
- Economic instability requires flexible employment strategies
Remote Work Framework
Legal Status:
- Remote work regulated since 2020
- Employees entitled to same rights as office workers
- Employer must provide necessary equipment
Requirements:
- Written remote work agreement
- Right to disconnect after hours
- Compensation for home office expenses
Cross-Border Considerations:
- Argentine employees working for foreign companies must comply with local labour law
- Tax obligations remain in Argentina regardless of work location
Built-in benefits packages for Argentina
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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