Remote Employment: Hiring and Payroll Practices for Argentinian Employees in 2024

When determining how to hire and pay remote employees in Argentina, business owners have three options: setting up a local entity, partnering with an EOR, or engaging contractors. Working with a reliable EOR helps you slash hiring costs while ensuring compliance with Argentina labor laws.

Remote Work
March 12, 2024
Table of Contents

Hire and Pay Remote Employees in Argentina

Argentina is ranked the top-most attractive country in Latin America, and the third in the world, from which to hire remote talents. The country has a vast pool of tech-savvy professionals, and the devaluation of the Argentine peso has left more workers looking for remote jobs outside the country.

How to Pay Someone in Argentina

Argentina has remote employment laws (Telework Employment Law No. 27,555) in place.  Plus, the country has a highly skilled workforce with a strong work ethic, adaptability, and professionalism, and ranks top for English proficiency in Latin America. That makes for easy communication and collaboration with UK and US businesses. 

3 Ways to Hire and Pay Remote Employees in Argentina

Employers considering to hire and pay remote employees in Argentina can do so in three ways, including:

  • Setting up a foreign entity
  • Engaging contractors
  • Working with an Employer of Record(EOR)

Setting up a foreign entity

Best for: Blue Chips planning to establish a long-term presence and hire large remote teams in Argentina.

This involves establishing your own company in Argentina. You get direct access to the Argentina labor market, and the ability to hire and pay remote employees in Argentine peso (ARS).

However, setting shop in Argentina comes with many cons, including:

  • A time time-consuming and expensive process that may take months
  • Complex regulatory framework and extensive red tape
  • Language and cultural barriers
  • Strenuous banking procedures
  • Burdensome and unpredictable taxes
  • Stringent labor laws
  • Economic and political instability
  • High inflation rate of 200%+
  • Dual-Rate currency exchange
  • Strong labor market unions, like the  General Confederation of Labor

Pay workers as contractors

Best for: Businesses looking to hire and pay remote employees in Argentina for short-term projects or services.

Contractors work as independent entities. They pay their own employment taxes and aren’t entitled to benefits. Thus, paying remote employees as contractors offers flexibility and cost-saving avenues for employers.

However, engaging employees as contractors may expose your businesses to misclassification risks, which can bring damaging penalties. A contractor management service can help you hire, onboard, and pay contractors in Argentina without misclassification risks.

Partner with an Employer of Record (EOR)

Best for: Businesses looking to quickly engage local talent in Argentina, lower hiring costs, and reduce legal and misclassification risks.

When considering how to hire and pay remote employees in Argentina, partnering with an EOR may be your best option. EORs work as legal entities in Argentina with in-depth knowledge of Argentina's labor laws and tax regulations. 

A reputable EOR handles the employment aspects and payroll responsibilities on your behalf. They manage payroll, benefits administration, remote hiring and onboarding, and more.  That helps build a compliant remote team in Argentina at minimal cost and without compliance hassles.

Preparing to Hire Remote Employees in Argentina

Preparing to hire remote employees in Argentina can be achieved through:

  • Defining clear job roles and requirements – outlining the specific skills and expertise required. 
  • Crafting compelling job descriptions – highlighting remote work responsibilities, company culture,  employee growth opportunities, etc
  • Establishing recruitment strategies – leveraging popular remote work platforms like Zonajobs, local job boards, and professional networks like LinkedIn.

Recruiting Remote Talent in Argentina

Understanding how to hire and pay remote employees in Argentina means sourcing top talent and conducting robust interviews to find the best fit for the role. 

  • Identifying talent sources and platforms: Bumeran, LinkedIn, Zonajobs, Laborum, and Snaphunt are some of the top platforms for searching for talent in Argentina.
  • Conducting effective interviews: Assess the candidate's professional skills, experience, self-motivation, and ability to manage time and work independently in a home office setup.
  • Assess cultural fit and language proficiency

Navigating Legal and Compliance Considerations

As you think about how to hire and pay remote employees in Argentina, legal and compliance considerations should be top of mind. The top things to consider include:

  • Taxation and social security obligations: Argentina tax regulations require employers to withhold and submit Social Security contributions and employee income tax on behalf of their employees.
  • Compliance with Argentine labor laws: Working with a reliable Employer of Record (EOR) is the best way to navigate the complex employment and tax regulations in Argentina and ensure compliance.

Structuring Remote Employee Compensation

Understanding salary expectations and benefits is important to help employers structure and develop fair and competitive remote compensation packages. Below are the top salary and benefits considerations to keep in mind when determining how to hire and pay remote employees in Argentina.

  • Argentina minimum wage: The National Minimum Wage in Argentina is about ARS 65,427, roughly US$281 per month. There's also a 13th-month pay in Argentina, which equals 50% of the employee's salary.
  • Overtime: Employees receive 50% of their normal salary as overtime and 100% on work done during holidays or a rest period.
  • Paid time off: Employees are entitled to receive up to 35 days of paid time off.
  • Maternity and parental leave: 90 days of maternity leave.

Other employee rights and protections to consider include holidays, severance pay, sick leave, termination notice periods, and more.

Looking Ahead: Future Trends and Opportunities

Remote work in Argentina is expected to continue as the country struggles with high inflation rates and the devaluation of the Argentine Peso (ARS). Employers should leverage the vast remote talent pool in Argentina as more workers seek currency stability by earning in USD and EUR.

Playroll is a Global Employer of Record (EOR) with local entities in Argentina. We help you hire, onboard, and pay remote employees in Argentina, ensuring compliance with employment laws and payroll regulations in the country. Book a demo today.

How to hire and pay remote employees in Argentina FAQs

How can we ensure effective communication and collaboration with remote employees in Argentina?

Establishing clear communication channels and collaboration tools is the best way to ensure effective connections with remote employees. That entails using instant messaging apps, video conferencing, email, shared documents, and collaborative project management platforms.

What are the best practices for handling remote employee benefits and perks in Argentina?

Ensure that remote employee benefits and perks comply with Telework Employment Law and Argentina labor laws relating to minimum wage, working hours, paid time off, overtime pay, holidays, and more. Working with a reputable EOR can help streamline benefits administration.

How do we address cultural differences and language barriers when hiring remote employees in Argentina?

Various ways to address cultural barriers include cultural awareness training, cultural sensitivity and respect, and cultural integration initiatives, like the celebration of Argentina's cultural events, holidays, and traditions.

To solve language barriers, Employers should assess the language skills and proficiency of potential remote employees, or support bilingual communication in English and Spanish.

Hire and Pay Remote Employees in Argentina

Argentina is ranked the top-most attractive country in Latin America, and the third in the world, from which to hire remote talents. The country has a vast pool of tech-savvy professionals, and the devaluation of the Argentine peso has left more workers looking for remote jobs outside the country.

How to Pay Someone in Argentina

Argentina has remote employment laws (Telework Employment Law No. 27,555) in place.  Plus, the country has a highly skilled workforce with a strong work ethic, adaptability, and professionalism, and ranks top for English proficiency in Latin America. That makes for easy communication and collaboration with UK and US businesses. 

3 Ways to Hire and Pay Remote Employees in Argentina

Employers considering to hire and pay remote employees in Argentina can do so in three ways, including:

  • Setting up a foreign entity
  • Engaging contractors
  • Working with an Employer of Record(EOR)

Setting up a foreign entity

Best for: Blue Chips planning to establish a long-term presence and hire large remote teams in Argentina.

This involves establishing your own company in Argentina. You get direct access to the Argentina labor market, and the ability to hire and pay remote employees in Argentine peso (ARS).

However, setting shop in Argentina comes with many cons, including:

  • A time time-consuming and expensive process that may take months
  • Complex regulatory framework and extensive red tape
  • Language and cultural barriers
  • Strenuous banking procedures
  • Burdensome and unpredictable taxes
  • Stringent labor laws
  • Economic and political instability
  • High inflation rate of 200%+
  • Dual-Rate currency exchange
  • Strong labor market unions, like the  General Confederation of Labor

Pay workers as contractors

Best for: Businesses looking to hire and pay remote employees in Argentina for short-term projects or services.

Contractors work as independent entities. They pay their own employment taxes and aren’t entitled to benefits. Thus, paying remote employees as contractors offers flexibility and cost-saving avenues for employers.

However, engaging employees as contractors may expose your businesses to misclassification risks, which can bring damaging penalties. A contractor management service can help you hire, onboard, and pay contractors in Argentina without misclassification risks.

Partner with an Employer of Record (EOR)

Best for: Businesses looking to quickly engage local talent in Argentina, lower hiring costs, and reduce legal and misclassification risks.

When considering how to hire and pay remote employees in Argentina, partnering with an EOR may be your best option. EORs work as legal entities in Argentina with in-depth knowledge of Argentina's labor laws and tax regulations. 

A reputable EOR handles the employment aspects and payroll responsibilities on your behalf. They manage payroll, benefits administration, remote hiring and onboarding, and more.  That helps build a compliant remote team in Argentina at minimal cost and without compliance hassles.

Preparing to Hire Remote Employees in Argentina

Preparing to hire remote employees in Argentina can be achieved through:

  • Defining clear job roles and requirements – outlining the specific skills and expertise required. 
  • Crafting compelling job descriptions – highlighting remote work responsibilities, company culture,  employee growth opportunities, etc
  • Establishing recruitment strategies – leveraging popular remote work platforms like Zonajobs, local job boards, and professional networks like LinkedIn.

Recruiting Remote Talent in Argentina

Understanding how to hire and pay remote employees in Argentina means sourcing top talent and conducting robust interviews to find the best fit for the role. 

  • Identifying talent sources and platforms: Bumeran, LinkedIn, Zonajobs, Laborum, and Snaphunt are some of the top platforms for searching for talent in Argentina.
  • Conducting effective interviews: Assess the candidate's professional skills, experience, self-motivation, and ability to manage time and work independently in a home office setup.
  • Assess cultural fit and language proficiency

Navigating Legal and Compliance Considerations

As you think about how to hire and pay remote employees in Argentina, legal and compliance considerations should be top of mind. The top things to consider include:

  • Taxation and social security obligations: Argentina tax regulations require employers to withhold and submit Social Security contributions and employee income tax on behalf of their employees.
  • Compliance with Argentine labor laws: Working with a reliable Employer of Record (EOR) is the best way to navigate the complex employment and tax regulations in Argentina and ensure compliance.

Structuring Remote Employee Compensation

Understanding salary expectations and benefits is important to help employers structure and develop fair and competitive remote compensation packages. Below are the top salary and benefits considerations to keep in mind when determining how to hire and pay remote employees in Argentina.

  • Argentina minimum wage: The National Minimum Wage in Argentina is about ARS 65,427, roughly US$281 per month. There's also a 13th-month pay in Argentina, which equals 50% of the employee's salary.
  • Overtime: Employees receive 50% of their normal salary as overtime and 100% on work done during holidays or a rest period.
  • Paid time off: Employees are entitled to receive up to 35 days of paid time off.
  • Maternity and parental leave: 90 days of maternity leave.

Other employee rights and protections to consider include holidays, severance pay, sick leave, termination notice periods, and more.

Looking Ahead: Future Trends and Opportunities

Remote work in Argentina is expected to continue as the country struggles with high inflation rates and the devaluation of the Argentine Peso (ARS). Employers should leverage the vast remote talent pool in Argentina as more workers seek currency stability by earning in USD and EUR.

Playroll is a Global Employer of Record (EOR) with local entities in Argentina. We help you hire, onboard, and pay remote employees in Argentina, ensuring compliance with employment laws and payroll regulations in the country. Book a demo today.

How to hire and pay remote employees in Argentina FAQs

How can we ensure effective communication and collaboration with remote employees in Argentina?

Establishing clear communication channels and collaboration tools is the best way to ensure effective connections with remote employees. That entails using instant messaging apps, video conferencing, email, shared documents, and collaborative project management platforms.

What are the best practices for handling remote employee benefits and perks in Argentina?

Ensure that remote employee benefits and perks comply with Telework Employment Law and Argentina labor laws relating to minimum wage, working hours, paid time off, overtime pay, holidays, and more. Working with a reputable EOR can help streamline benefits administration.

How do we address cultural differences and language barriers when hiring remote employees in Argentina?

Various ways to address cultural barriers include cultural awareness training, cultural sensitivity and respect, and cultural integration initiatives, like the celebration of Argentina's cultural events, holidays, and traditions.

To solve language barriers, Employers should assess the language skills and proficiency of potential remote employees, or support bilingual communication in English and Spanish.

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