Argentina Employer of record (EOR)
Europortage Argentina Employer of Record (EOR) solution makes it easy for you to hire your talent in Argentina.
An employer of record is a third party that act as the legal employer in the country, so you can hire your talent without having to setup a legal entity.
The employer of record (EOR) has extenseive knowledge and local expertise and takes care of all Argentina compliance aspects of employment, including payroll management, taxes, statutory employee benefits, employment contracts, severance pay and more.
The employer of record is responsible for:
✔️ Drafting local compliant contracts
✔️ Process payroll accurately and on time
✔️ Provide the best employee experience
✔️Seamlessly handle global mobility
✔️ Pay your talent in local currency
Employment taxes in Argentina
Partner with an employer of record (EOR) is quite a game changer and can help you hire globally. The EOR will be the legal employer, which means they will handle employment contracts, onboarding process, compliance, benefits, payroll and more.
Pension Fund - 11%
Employers are required to contribute to the pension fund system, and they make a single social security contribution to the Pension Fund.
The pourcentage is around 11%
Health Insurance - 6%
Employers in Argentina must pay the health insurance contribution. The pourcentage is 6%.
National Employment Fund - 0,94%
Labor Risk Insurance - 2,12%
Life Insurance
Employee taxes in Argentina
Residents of Argentina are subject to tax on their worldwide income on a monthly basis.
Social security contribution
In Argentina, a progressive income tax system is used. Employees contributes 17% of their salary to the social security.
The 17% contribution includes the 11% contribution to the pension fund, 3% to healthcare and 3% to social service.
Statutory Benefits in Argentina
Employees in Argentina must receive certain mandatory benefits as:
13th month salary
Argentines enjoy an Aguinaldo (SAC – Sueldo anual complementario), otherwise known as a 13th-month salary. The 13th month salary is paid in two installments: half in June and half in December. While it may seem like a Christmas bonus, 13th month pay isn’t a optional benefit; it’s part of employment law, so employers must pay it.
Allowance for remote workers
Employers must provide a home office allowance for remote workers .
Common Non-mandatory Benefits in Argentina
Employee mandatory benefits and conditions are legal rights. Then employer are not allowed to make change to the employment terms. However, the can add extra common benefits to attract and retain talents.
Kindly note that depending on the company CBA, some non-mandatory benefits can actually be mandatory.
Meal vouchers
Meal vouchers are a really common benefits in Argentina. In general, the benefit is offered as a card with a cash value that can be used in the company’s canteen or in partner restaurants.
Food vouchers
This benefits is quite common in Argentina. It allows the employee to buy food in grocery stores and supermarket.
Food vouchers are usually granted alonside meal vouchers.
Private Health Insurance
Medical assistance is one of the benefits most valued by professionals. Many companies offer different health plans according to the professional’s position. Other companies offer both health and dental plans together. And some companies extend the benefit to the employees’ families.
Transportation Allowance
Transportation allowance is a common benefits provided by large companies in Argentina.
It usually depends on distance between workers home and office.
Payments in Argentina
Minimum wage
From the 1st of March 2024, the minimum wage in Argentina stands at ARS 202,800 per month (= $230 USD).
Payroll frequency
Employees in Argentina are generally paid monthly with employees being paid as stipulated in employment contract. Employees with per-project agreements are usually paid weekly or bi-weekly.
Payday
If paid once a month, employees are usually paid on the last working day of the month. If paid twice a month, employees are usually paid on the 15th and 30th of the month.
Working time and overtime in Argentina
Working hours
In Argentina, the law nº 11.544 establishes working hours. The standard workweek is set at 48 hours and the regular workday must not exceed 8 hours a day.
The 48-hour maximum can be distributed unevenly throughout the week, as long as it doesn’t exceed 9 hours on any given day.
In some cases, such as night work, for minors under 18 years of age or for occupations considered hazardous to health, additional reductions in working hours are applied to protect workers.
Overtime
The weekly working hours are 48 hours. Hours worked beyond this quota are compulsory paid as overtime. Overtime hours must not exceed 3 hours per day, 30 hours per month, or 200 hours per year.
Also, any overtime is paid at a rate of 1.5 times the regular salary. Besides, Saturdays afternoon, Sundays and public holidays are usually paid at double the salary.
Employers cannot require employees to work overtime, and employees have the right to refuse.
Contact our team for the most up-to-date information!
Probationary period
The probationary period in Argentina is three months.
The employment relationship begins on the day the worker is registered with AFIP, and on that same day the probationary period begins.
During the three-month probationary period, either party can terminate the contract with only 15 days’ notice or payment in lieu of notice. Both parties may terminate the relationship during this period without just cause and without entitlement to compensation.
Leave in Argentina
Annual leave
Annual leave in Argentina depends on the employee seniority:
- For less than 5 years of service, the employee is entitled to 14 calendar days of annual leave
- Between 5 to 10 years of service, the employee is entitled to 21 calendar days of annual leave
- Between 10 to 20 years of service, the employee is entitled to 28 calendar days of annual leave
- For more than 20 years of service, the employee is entitled to 35 caldendar days of annual leave
Public holidays
The official public holidays in Argentina are:
DATE | HOLIDAY |
| 1/1 | New Year’s Day |
| Day 48 and 47 before Easter | Carnaval* |
| 24/3 | Day of Remembrance for Truth and Justice |
| 2/4 | Day of the Veterans and Fallen of the Malvinas War |
| 15/4 | Good Friday |
| 1/5 | Labour Day |
| 25/5 | May Revolution |
| 17/6 | Anniversary of the Passing of General Martín Miguel de Güemes |
| 20/6 | General Manuel Belgrano Memorial Day |
| 9/7 | Independence Day |
| 17/8 | General José de San Martín Memorial Day |
| 12/10 | Day of Respect for Cultural Diversity |
| 20/11 | National Sovereignty Day |
| 8/12 | Immaculate Conception Day |
| 25/12 | Christmas Day |
Sickness and disability leave
According to the Article 208 of the LCT, employees in Argentina are entitled to sick leave. The lenght depends on theemployee’s seniority.
- For less than 5 years of service, employees are entitled to paid sick leave for up to three months per year
- For more than 5 years of service, employees are entitled to paid sick leave for up to six months per year
Paternity and maternity leave
Female employees are entitled to 90 days of paid maternity leave, typically split before and after childbirth. Also, they cannot be terminated from seven and a half months prior to and after the birth of a child. Along with, they are entitled to full salary and benefits.
Fathers may take up to 2 days off with pay following the birth of their child.
End of employment in Argentina
In Argentina, employment can be terminated without cause at any time, provided the notice period is respected (or paid in lieu) and the employee receives their severance pay.
Termination notice period
In Argentina, the notice period depends on who initiates the termination and the employee’s length of service.
Employer-Initiated Termination
The notice period varies based on seniority when the legal employer terminates an employee. See below:
For small businesses, the maximum notice period is 30 days, regardless of the employee’s seniority.
Legal employers can choose to pay the notice in lieu.
Employee-Initiated Termination
In Argentina, employees can resign at any time as long as they provide a 15 days’ written notice to their employer.
Severance pay
In Argentina, employees are entitled to severance pay under specific termination scenarios:
Termination Without Just Cause
In case of a termination without just cause, the employee will receive severance pay called “Despido”.
The severance pay is equal to one month’s salary for every year of service. If the employee has worked at least three months in an incomplete year, they’re entitled to an additional month’s salary.
Collective bargaining agreements (CBAs) may set additional severance minimums that are higher than the legally mandated amounts.
Termination with Just Cause
In Argentina, no notice nor severance pay are required in case of termination with just cause.
Voluntary Resignation
In Argentina, no severance pay is required for voluntary resignation.
Probation period
No severance pay is due in case of termination during the probation period.
How to hire in Argentina?
Entity setup
Establish a legal entity in a specific country will allow your business to operate legally in the country, hire, pay and manage your talents there.
Independent contractor
This solution might seem a good fit to reduce the cost of setting up an entity or hiring a full-time employee. Engaging a contractor can be a winning strategy in some cases and will depend of your business strategy and goals. For instance, it is a great solution when you need a talent for a short-term project.
Use an Employer of record in Argentina
Partner with an Argentina employer of record (EOR) is quite a game changer and can help you hire globally. The EOR will be the legal employer, which means they will handle employment contracts, onboarding process, compliance, benefits, payroll and more.