and contractors in Argentina
Remote’s guide to employing in Argentina
Facts & stats
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.
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.
|Date||Holiday Name||Extra information|
|New Year's Day|
|Carnival Monday and Tuesday|
|Day of Remembrance for Truth and Justice|
|Day of the Veterans and Fallen of the Falklands War|
|Anniversary of the Passing of General Martín Miguel de Güemes|
|General Manuel Belgrano Memorial Day|
|General José de San Martín Memorial Day|
|Day of Respect for Cultural Diversity|
|National Sovereignty Day|
|Immaculate Conception Day|
The following are federal non-working national or religious holidays, during which people of the following faiths are excused from work:
|Date||Holiday name(in English)||Group|
|Day of Action for Tolerance and Respect Among Peoples||Armenians|
|Festival of Breaking of the Fast of the Holy Month of Ramadan||Islam|
|Festival of Sacrifice||Islam|
|Jewish New Year||Judaism|
|Day of Atonement||Judaism|
|Islamic New Year||Islam|
In Argentina, the minimum wage is 20,587 Argentine pesos (ARS) per month.
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
Argentines enjoy an Aguinaldo (SAC - Sueldo anual complementario), otherwise known as a 13th-month salary. This is statutory, and typically paid in two installments, 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.
- 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.
We can help you get a new employee started in Argentina fast. The minimum onboarding time we need is only 17 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.
Competitive benefits package in Argentina
Beyond statutory benefits, employers should consider offering additional benefits for employees in Argentina to attract and retain the best talent. A competitive benefits package may include perks such as:
Taxes in Argentina
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Argentina.
- 12.35% - Argentine Integrated Pension System
- 1.58% - Public health insurance (PAMI)
- 6% - Social health fund
- 1.07% - National Employment Fund
- 0.03% - Life insurance
- 25.53 % - Total Cost of Employment
Employee Payroll taxes
- 11% - Pension
- 3% - Public health insurance (PAMI)
- 3% - Social health fund
Employee Income tax
- In Argentina, residents and nonresidents are taxed at progressive income tax rates ranging from 5% to 35%, as per the following details:
- 5% - ARS 0-64,532.64
- 9% - ARS 64,532.64 - 129,065.29
- 12% - ARS 129,065.29 - 193,597.93
- 15% - ARS 193,597.93 - 258,130.58
- 19% - ARS 258,130.58 - 387,195.86
- 23% - ARS 387,195.86 - 516,261.14
- 27% - ARS 516,261.14 - 774,391.71
- 31% - ARS 774,391.71 - 1,032,522.30
- 35% - ARS 1.032.522,30 and above
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.
The minimum and continued period of paid annual vacations employees are entitled to are:
- 14 calendar days for employees of less than five years service
- 21 calendar days when seniority is between five and 10 years
- 28 calendar days when seniority is between 10 and 20 years
- 35 days for employees with more than 20 years service
Employers may also choose to extend the vacations of their employees.
Employers must also pay salary and other benefits to the employee during annual leave. This payment is calculated by dividing the salary by 25 and multiplying it by the number of days of holiday entitlement. Payment must be made in advance, and leave must begin on a Monday.
All employees are entitled to 15 paid public holidays, plus a few “bridge holidays” added by the Argentine government each year. The amount of holiday entitlement increases with the length of continuous employment, up to a maximum of 5 weeks or 35 days.
and maternity leave
Employees who give birth in Argentina are entitled to 90 days of leave, paid at 100% salary by the government. This leave can be taken half before the due date and half after, though some employees choose to take their leave unevenly (e.g., 30 days prior to the due date and 60 days after). The employee who gives birth may request additional unpaid leave of up to six months.
Argentina provides two days of paid paternity leave, paid at 100% salary by the government.
Employees in Argentina are entitled to sick leave depending on years of service at the company. Sick leave changes depending on whether the condition is a work-related illness or injury.
- For illness or injury related to work, the employer must pay the first 15 days of the employee’s salary. After 15 days, insurance covers the remaining costs.
- For illness or injury not related to work, employees with fewer than five years of service receive three months of paid sick leave. Employees with families receive six months. The company is responsible for paying the employee’s salary during this time.
- For illness or injury not related to work, employees with more than five years of service receive six months of paid sick leave. Employees with families receive 12 months. The company is responsible for paying the employee’s salary during this time.
If an employee remains ill after 12 months of leave, the employer may stop making payments but is still required to retain the employee for an additional 12 months. Beyond that timeframe, the employer and employee must discuss long-term disability arrangements or severance pay, depending on the work required and the nature of the disability.
- Marriage Leave: Employees are entitled to 10 calendar days of leave for marriage.
- Bereavement Leave: Employees receive three days of leave for the death of a spouse, child, or parent. Employees also receive one day of leave for the death of a sibling.
- Exam Leave: Employees may take up to two days of leave at a time for school exams, up to a maximum of 10 days.
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 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 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
Probationary periods in Argentina are three months for employees on indefinite contracts.