Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Discover valuable information about employer of record in Argentina, including payroll cycles, employer and employee contributions, minimum wage regulations, hiring practices for employees, contractors, and expatriates, background checks, employment contracts, onboarding procedures, employee benefits, social security requirements, healthcare and insurance, leave policies, public holidays, work permits and visas, probation and notice periods, termination and severance processes, as well as personal income tax considerations.
| Overview | |
| Continent | Americas |
| Country | Argentina |
| Capital | Buenos Aires |
| Time zone | UTC−03:00 (ART) |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 10 June (aprox) |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Argentine Peso (ARS) |
| VAT | the standard rate is 21% |
Employer Payroll Contributions in Argentina
| Employers | % of Gross Salary |
| Social Security | 6% |
| Health Insurance | 6% |
| Pension | 12% |
| Work Risk Insurance | 2.05% |
| Life Insurance | 19.03 ARS |
| Total Employment Cost | 45.08% |
Employee Payroll Contributions in Argentina
| Employees | % of Gross Salary |
| Social Security | 3% |
| Health Insurance | 3% |
| Pension | 11% |
| Total Employee Cost | 17% |
Minimum Wages in Argentina
| Minimum Wage | |
| Minimum Wage | 28080 ARS per month. |
Payroll Cycle in Argentina
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Mandatory. |
Personal Income Tax in Argentina
| Income Tax | |
| 0 - 64,532.64 ARS | 5% |
| 64,532.64 - 129,065.29 ARS | 9% |
| 129,065.29 - 193,597.93 ARS | 12% |
| 193,597.93 - 258,130.58 ARS | 15% |
| 258,130.58 - 387,195.86 ARS | 19% |
| 387,195.86 - 516,261.14 ARS | 23% |
| 516,261.14 - 774,391.71 ARS | 27% |
| 774,391.71 - 1,032,522.30 ARS | 31% |
| 1,032,522.30 and over ARS | 35% |
Employment Contracts in Argentina
Employment contracts in Argentina do not have a specific legal requirement regarding their form, allowing them to be executed in various ways, including written or oral agreements, unless specific laws or collective agreements state otherwise. However, it is advisable for employers to have written employment contracts in place.
Regarding probationary periods, the maximum duration allowed is three months. Once this period ends, the employee automatically becomes an indefinite-term employee.
While the law does not mandate specific policies, it is highly recommended for employers to implement certain policies to prevent potential conflicts, such as bonus policies.
No third-party approval is necessary for employment contracts or any related policies in Argentina.
Hiring Options in Argentina
When it comes to hiring in Argentina, employers have several options to consider:
- Employees: Employers can hire full-time or part-time employees on either fixed-term or indefinite-term contracts. Trainees can also be hired to provide a learning experience within the organization.
- Independent Contractors: Contractors can be engaged when there is no labor relationship, meaning there is no direction or subordination, economic dependence, or other indicators of a labor relationship as mentioned above. It is crucial to properly classify contractors to avoid misclassification risks.
- Agency Workers: Employers also have the option to engage workers through authorized agencies. The employer and the agency share joint and several liability for all labor obligations arising from the worker's employment.
Factors that indicate a labor relationship for employees include the employee's availability to work for the employer, the employer's direction and subordination of the individual, instructions given for services and duties, adherence to a set schedule, performing similar tasks as other employees, having identification and a corporate email from the employer, and working exclusively for the employer. The extent of economic dependence and receiving a fixed remuneration are also taken into account.
Misclassification can lead to severe sanctions, fines, and obligations towards social security contributions. Failure to register an individual as an employee or incomplete registration can result in penalties, including doubled severance payments owed to misclassified employees. Employers may face additional fines if they fail to pay the correct severance amount requested by the contractor and the contractor files a judicial claim.
According to Article 30 of the Labor Contract Law No. 20,744 (LCL), employers are responsible for ensuring that the agency fulfills all applicable labor and social security obligations related to the engaged worker. This includes payment of social security contributions and the provision of occupational risk or life insurance policies.
Understanding the different hiring options in Argentina is essential to comply with labor regulations and avoid potential risks and penalties associated with misclassification or non-compliance with labor obligations.