Employer of Record in Argentina

Businesses can only operate smoothly in Argentina if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Argentina below, to avoid any compliance issues.

Employment Contract Requirements

In Argentina, employment contracts and employer-employee relations are primarily governed by the Labour Contract Law, collective bargaining agreements, and individual agreements with employees. Some key elements of employment contracts in Argentina are:

• Contracts must be in Spanish and can be bilingual
• Name
• Start date
• Length of the employment
• Job description
• Termination conditions
• Payment terms

Onboarding Process

We can help you get a new employee started in Argentina quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Argentina

In Argentina, the Employment Contract Law prescribes a standard workweek of 8 hours per day and 48 hours per week, excluding rest time. Night shifts (9 pm " 6 am) and certain unhealthy work are limited to 7 hours per day.

Overtime in Argentina

Employees receive 150% pay for overtime worked on weekdays. Holidays or work after 1 pm on Saturdays and Sundays warrant 200% pay.

Probation Period in Argentina

In Argentina, a probationary period can last up to a period of 3 months. During this period, the contract may be terminated at any time by either party.

Fiscal Year in Argentina

1 January - 31 December is the 12-month accounting period that businesses in Argentina use for financial and tax reporting purposes.

Payroll Cycle in Argentina

The payroll cycle in Argentina is usually monthly, with employees being paid as stipulated in employment contract.

Minimum Wage in Argentina

The minimum wage for employees in Argentina is typically 1,366,83 ARS per hour, amounting to ~262,432.93 ARS per month for a typical 48 hour work week.

Bonus Payments in Argentina

According to local law in Argentina, employees are entitled to receive an additional month's salary, known as Aguinaldo, which is payable in two semi-annual installments. The first installment is due for payment before June 30th, and the second installment is due before December 18th. This 13th-month salary is a legal requirement and is paid in addition to the employee's regular salary

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 27.61% + 175 ARS on top of the employee salary in Argentina.

Employee Payroll Tax Contributions

In Argentina , the typical estimation for employee payroll contributions cost is around 17%.

Individual Income Tax Contributions

The individual income tax spans from 5% to 35%, and it is computed based on progressive rates. Various supplementary factors, including household status (rent or credit), the count of dependents below 18, civil status, and geographical residence location, can influence the overall tax rates.

Pension in Argentina

Employers are required to contribute to the pension fund system, through a single social security contribution to the Pension Fund. For men, the minimum retirement age is 65 years, and for women, it is 60 years. Employees need to have at least 30 years of contributions to the Argentine pension system (ANSES - Administración Nacional de la Seguridad Social) to qualify for a full pension. There is a scheme which allows individuals who have not completed the 30 years of contributions to regularize their situation by paying off the missing contributions.

In Argentina, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, meeting eligibility requirements, and ensuring compliance with local labor regulations. Key visa types include the Temporary Worker Visa, Mercosur Work Visa, Intra-Company Transfer Visa, and Highly Skilled Worker Visa. Employers must follow the necessary procedures to sponsor foreign workers, including submitting required documentation and paying applicable fees. Processing times and application fees vary by visa type, so careful planning is crucial for successful hiring and visa sponsorship.

Mandatory Leave Entitlement in Argentina

The annual leave entitlement in Argentina is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Argentina

Argentina has the following national holidays:

Paid Time Off in Argentina

In Argentina the amount of leave entitlement increases with the length of continuous employment, up to a maximum of 35 calendar days and is accrued the following way:

• New employees are entitled to 1 day of leave for every 20 days worked.
• Employees with more than six months of continuous employment are entitled to 2 weeks (14 calendar days) of annual leave.
• Employees who have worked for the same employer for 5"10 years are entitled to 21 calendar days leave
• Employees who have worked for the same employer for 10"20 years are entitled to 28 calendar days leave
• Employees who have worked for the same employer for more than 20 years are entitled to 35 calendar days leave

Maternity Leave In Argentina

Employees in Argentina are entitled to 90 calendar days of paid maternity leave. The mother must take at least 30 days before the birth of the child, and the Argentine Social Security system pays maternity leave at 100%.

Paternity Leave In Argentina

New fathers are entitled to 2 days of paid paternity leave which is to be utilized following the birth of their child. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay

Sick Leave In Argentina

Employees in Argentina are entitled to paid sick leave. Employee receives full pay during sick leave. The length of the leave depends on their seniority. Sick leave in Argentina is paid depending on the following:

• Employees with less than 5 years of seniority are entitled to 3 months of sick leave. If the employee has dependants, the sick leave allocation is doubled.
• Employees with more than 5 years of seniority are entitled to 6 months of sick leave. If the employee has dependants, the sick leave allocation is doubled.

Parental Leave In Argentina

There are no provisions for Parental leave in Argentina.

Marriage Leave

Employees are entitled to 10 day paid leave for their marriage. Marriage leave is paid at 100% by employer.

Bereavement Leave

Employees are entitled to 3 days of leave in the event of the death of a child, parent, or spouse, and one day of leave for the passing of a sibling.

Termination Process in Argentina

Employers cannot terminate employees at-will, except during the probation period. Employers must provide a valid reason for termination, which can include:

• Severe misconduct
• Economic factors
• Mutual agreement
• Poor work performance

Notice Period in Argentina

In Argentina, the termination notice period for employees is contingent upon the duration of their service with the company. The notice periods are as follows:

• 15 days during the probation period (3 months)
• 30 days if the length of service is less than 5 years
• 60 days if the length of service is more than 5 years

Severance in Argentina

An employee who is terminated without valid reason is eligible for a statutory severance payment of one month's salary for each year of service, or a period longer than 3 months. This amount is calculated based on the employee's highest monthly regular compensation received in the last 12 months of work.