Argentina
Make employment in Argentina easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in , all in one easy-to-use platform.
- Capital city
Buenos Aires
- Currency
Argentine peso ($, ARS)
- Languages
Spanish
- Population size
45,457,630
Facts & Stats
- Capital city
Buenos Aires
- Currency
Argentine peso ($, ARS)
- Languages
Spanish
- Population size
45,457,630
- Ease of doing business
Medium
- Cost of living index
$$ (107 of 139 nations)
- Payroll frequency
Monthly
- VAT - standard rate
21%
- GDP - real growth rate
-2.1%
While Argentina may no longer be one of the wealthiest countries in the world, as it was during the early 1900s, the country remains a top spot for international talent. The largest Spanish-speaking country on Earth, Argentina boasts one of the top economies in South America. Visitors enjoy a community with a passion for great food, but don’t skip the afternoon merienda meal, or you will be hungry before dinner is served after 9 p.m.
Grow your team in Argentina with Remote
Looking to employ workers in Argentina? Companies hiring in Argentina must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Argentina on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Argentina team. You can also pay contractors now in Argentina with Remote.
Risks of misclassification
Argentina, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Argentina may lead to fines and penalties for the offending company.
Employing in Argentina
Argentina’s Constitution, several international treaties, employment contract laws, various federal statutes, and collective bargaining agreements all play a role in Argentina’s employment regulations. Any company looking to employ people in the country must abide by all of Argentina’s labor-friendly laws. Because these regulations evolve over time, companies must stay vigilant to stay compliant.
To employ workers in Argentina, contact Remote to learn more about your options.
Minimum Wage
In Argentina, the minimum wage is 84,512 Argentine pesos (ARS) per month.
Overtime Pay
Unless a collective bargaining agreement states otherwise, overtime pay is either 50% more than normal wages or 100% if working during a holiday/rest period.
13th Month Salary
Argentines enjoy an Aguinaldo (SAC - Sueldo anual complementario), otherwise known as a 13th-month salary. This is statutory, and typically paid in two instalments, one in June and one in December. Each instalment must be half of the highest monthly wage the employee received in the previous six months.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
For the mandatory bonus scheme in Argentina known as the 13th month Salary, half the employee’s monthly salary is paid mid-year and the other half at the end of the year.
Onboarding Time
We can help you get a new employee started in Argentina fast. The minimum onboarding time we need is only 5 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
18 Public holidays
Competitive benefits package in Argentina
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Argentina are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Argentina
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Argentina.
20.4%
Unified Social Security Contribution
6%
Social health fund
ARS 7,323 - Mandatory Health check (one time payment required to validate the employee's health before they start)
Income tax is progressive in Argentina, so higher earners pay more. Employers must withhold the appropriate amount of income from employees’ paychecks. Employees and employers both contribute to social security.
Employers must contribute to the pension fund system, Medicare coverage, life insurance, and labor risk insurance for all their employees as part of social security. Rates are as high as 17% for the Pension Fund and 0.50% for life insurance.
Although Argentina does not have a payroll tax, employers must pay a corporate income tax. The country operates under a progressive tax system in which the income tax rate increases as an employee makes more money. It’s important to make sure you know where employees fall on this scale when setting up Argentina payroll.
Types of Leave
For employees in Argentina, guaranteed leave depends on the employee’s years of service at the company.
Employees who have worked for an employer for less than 6 months are not entitled to leave (but it can be granted at the employer’s discretion)
Employees with 0-5 years of service are entitled to 14 days of leave per year.
Employees with 5-10 years of service are entitled to 21 days of leave per year.
Employees with 10-20 years of service are entitled to 28 days of leave per year.
Employees with more than 20 years of service are entitled to 35 days of leave per year.
Employment termination
Termination process
Employers in Argentina must provide written notice to terminate an employee. Reasons for termination may include employee conduct, economic factors, or inability to perform the work required. The employer may not modify the reason for termination after the fact, so it is important to provide accurate information throughout the termination process.
Terminations in Argentina can be complicated. Different situations and justifications for termination can have significant effects on factors such as severance pay.
Notice period
Notice periods for termination in Argentina depend on how long the employee has worked for the company.
During the probationary period, employees are entitled to 15 days of notice.
Employees with less than five years of service are entitled to one month of notice.
Employees with more than five years of service are entitled to two months of notice.
In lieu of notice, Argentine employers may pay employees for the same number of days as the notice period. For example, a company in Argentina could terminate an employee with 10 years of service immediately as long as the company paid the employee two months’ wages, in addition to any required severance pay.
Severance pay
Severance pay in Argentina depends on the tenure of the employee and the conditions of dismissal. Employees terminated without cause are entitled to several forms of severance pay, including:
Seniority compensation, based on the employees highest monthly salary
Compensation in lieu of prior notice, outlined in the previous section
Compensation for any remaining days in the month, if the employee is terminated prior to the end of the month
Compensation for unused vacation time
Proportional compensation for the 13th month salary
Special compensation for union delegates in certain cases
Special compensation for pregnant employees terminated within 7.5 months before or after the due date
Special compensation for employees on sick leave
Probation periods
By law probation period of new permanent employees is 3 months. We advise against using fixed term agreements. An extraordinary requirement is required by law in order to duly justify a fixed term contract. Continuous use of such fixed term contracts or in excess of legal requirements will automatically convert it into a permanent labor contract. No probation period is required for these fixed term agreements.