Argentina is the second-largest country in South America, and the eighth-largest country in the world. They benefit from rich natural resources, host a highly literate population, and an export-oriented agricultural sector. It has a "very high" rating on the Human Development Index and a relatively high GDP per capita.
There are no restrictions on job titles in Argentina under the EOR employment model.
The maximum number of working hours in Argentina is 8 hours per day or 48 hours per week.
Overtime must not exceed 3 hours per day, or 30 hours per month, or 200 hours per year. Overtime worked between Monday and Saturday morning is paid at 50% above the employee’s normal salary. Saturday, Sunday, and public holiday overtime is paid at double the normal rate.
Public holiday work is typically paid at 50% to 100% above the standard rate.
The minimum wage is ARS202,800 per month (2024).
In Argentina, the 13th salary, known as "aguinaldo," is a mandatory annual bonus payment for employees. It is calculated based on the gross salary earned throughout the year, with employees receiving 1/12th of their annual salary for each month worked.
The bonus is typically paid in two installments with the first between June 1st and June 30th, and the second between December 1st and December 18th. The 13th salary is subject to taxes and deductions, and specific rules may apply depending on collective bargaining agreements or employment contracts.
Employees pay Income tax based on their level of salary.
Employees pay Income tax based on their level of salary.
The following social security-related contributions apply:
Employees in Argentina are entitled to a minimum of 14 calendar days of annual leave which accumulates over a minimum of 6 months. The amount of annual leave increases by one day per year of service up to a maximum of 35 calendar days.
An employee can carry over to the next year a third of unused leave. Accumulated leave expires after 48 months. Employers have their policies regarding the maximum number of days that can be carried over and restrictions on the use of carried-over days.
At contract termination, unused leave is compensated.
If an employee has worked for a company for less than 5 years, they are entitled to a maximum of 3 months of paid sick leave. Once they have worked for a company for more than five years, the paid sick leave is extended to 6 months.
The leave can be intermittent or continuous. The employer is responsible for paying the first 15 days of sick leave.
Female employees are entitled to 90 days of maternity leave with full pay, at least 30 days of which should be taken before childbirth. Commonly, the leave is split 45 days on either side of the delivery. Maternity leave is paid by the employer.
Fathers are entitled to 2 weeks of paternity leave in the event of childbirth or adoption. Paternity leave is funded by the employer.
Parents are entitled to parental leave to care for newborns or adopted children. The length of parental leave varies. The leave is paid by the company.
Employees are entitled to bereavement leave paid by the company as follows:
In addition to statutory leave, employees are entitled to the following statutory benefits:
Employers in Argentina can terminate an employment contract without a justified case, subject to severance compensation. Termination with just cause does not entail payment of severance compensation — i.e. failure to fulfill their requirements, misconduct, or economic factors.
The statutory minimum notice period for the employer to terminate a contract of employment with or without cause is 10 days if the employee has less than 1 year of service, or 30 days if the employee has 1 or more years of service.
The statutory minimum notice period for the employee to terminate a contract with cause is 10 days if the employee has less than 1 year of service, or 30 days if the employee has 1 or more years of service. The statutory minimum notice period for the employee to terminate without cause is 10 days.
Notice to terminate the contract with or without cause during the probation period is 15 days. An employee can be paid cash in lieu of notice.
An employee whose contract is terminated without reasonable cause is entitled to severance pay calculated as 1 month’s salary for every year served or fraction for a more than 3 months period. Any unused leave must be paid out in the employee’s final salary payment.
Argentinian law states that employees are entitled to receive an additional month’s salary called “Aguinaldo”. This 13th-month salary is payable in two semi-annual installments, due to be paid on or before June 30th and December 18th. The amount of each payment is equal to 50% of the highest monthly wage received in the previous 6 months.
★ 18% - Social Security
★ 6% - Health Insurance
★ 0.6% - Life Insurance
★ 2% - Labor Risk Insurance
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.