Argentina is the second-largest country in South America, and the eighth-largest country in the world. It's home to rich natural resources, 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.

Types of Contracts

• Indefinite contracts are the most widely used in Argentina. The contract can be terminated with cause or resignation under the labor law.
• Fixed-term contracts have a specific life span and are largely used for project-based work. They can be extended up to a total duration of 5 years.

Job Title Restrictions

There are no restrictions on job titles in Argentina under the EOR employment model.

Working Hours

The maximum number of working hours in Argentina is 8 hours per day or 40 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.

Minimum Wage

The minimum wage is ARS 313.400 per month (2025).

13th Month Salary

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. It is calculated as 50% of the highest monthly gross salary received in the previous six months, including any bonuses. The 13th salary is subject to taxes and deductions, and specific rules may apply depending on collective bargaining agreements or employment contracts.

Taxes & Local Employment Costs

Employee Taxes

Employees pay income tax based on their level of salary.

The following social security-related contributions apply:

• 11% - Pension Contribution
• 3.00% – Health Insurance ("Obra Social")
• 3.00% – Elder Care Insurance ("PAMI")
• Income Tax: Effective August 2025, the minimum salary subject to income tax withholding is set at approximately ARS 1,933,690 net for single employees and ARS 2,564,380 net for married employees with two children. On a gross salary basis, these thresholds equate to approximately ARS 2,329,750 and ARS 3,089,610, respectively.

Employer Taxes & Contributions

The employer makes the following employment-related contributions:

• 12.16% – Pension Fund
• 6.00% – Health Insurance
• 6.00% – National Employment Fund
• 2.00% to 5.00% – Injury Insurance (varies by risk level)
• 0.6% + 78,26 ARS – Life Insurance

Annual Leave

Entitlement is determined by seniority:

• < 5 years: 14 calendar days
• 5–10 years: 21 calendar days
• 10–20 years: 28 calendar days
• 20 years: 35 calendar days

Employees must complete 6 months of service in the same calendar year to receive full entitlement; otherwise, leave accrues at 1 day per 20 days worked. Vacations are generally taken between October 1 and April 30. By agreement, up to one-third of unused leave may be carried forward to the following year. Unused leave is payable upon termination.

Sick Leave

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.

During this sick leave period, the employer must pay full salary (same as if the employee were working).

Maternity Leave

Employees are entitled to 90 consecutive days of maternity leave, typically divided between 45 days before and 45 days after childbirth, or alternatively 30 days before and 60 days after. During this period, the employee receives 100% of her salary, paid directly by the social security system (ANSES) under the Asignación por Maternidad. This benefit is non-taxable.

Paternity Leave

All male employees, regardless of contract type or length of service, are entitled to 2 consecutive calendar days of paternity leave. This leave must be taken at the time of the child’s birth and is fully paid by the employer at 100% of the employee’s regular salary.

Shared Parental Leave

Argentina’s current labor law does not provide a unified “parental leave.” Instead, it provides separate entitlements for maternity and paternity, and then optional extensions (mainly unpaid) for primary caregivers.

Bereavement Leave

Employees are entitled to bereavement leave paid by the company as follows:

• Death of spouse, common-law partner, children, or parents: 3 consecutive days;
• Death of brother or sister: 1 day.

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Benefits

Statutory Benefits

In addition to statutory leave, employees are entitled to the following statutory benefits:

• Social Security Contributions: Employers are required to make contributions to social security programs on behalf of their employees. Benefits derived from social security are:
  • Retirement pensions
  • Healthcare coverage
  • Unemployment benefits
• Workers' Compensation: Provides employees compensation and medical benefits for work-related injuries or illnesses.
• Severance Pay: Employees who are terminated without just cause are entitled to receive severance pay, which is calculated based on their length of service and salary.
• 13th Salary: Also referred to as “aguinaldo”, the 13th salary is mandatory. It is typically paid in 2 installments, in June and December.

Termination Process

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.

Notice Period

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.

Severance Pay

An employee whose contract is terminated without reasonable cause is entitled to severance pay calculated at 1 month’s salary for every year served or fraction for more than a 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.