Employer Record in Argentina

Basic information

Capital: Buenos Aires

Time zone: GMT-3

Languages: Spanish

Currency code:ARS&USD

Human Resources at a Glance 

Contract Terms

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• name
• start date
• length of the employment
• job description
• termination conditions
• payment terms

Guidelines Regarding Probation Period/Trial Period

Probation periods are mandatory and last 90 calendar days.

Regulations and Rules Regarding Working Hours

Standard working hours are 8 hours per day, 40 hours per week, with an extra hour per day for the lunch break. The standard work week is from Monday to Friday. However, standard working hours can also be 48 hours.

Overtime is paid according to the following rates

In Argentina, overtime cannot exceed three hours per day, 30 hours per month, or 200 hours per year. Employees are paid 150% of their regular salary for overtime.

Minimum Wage Requirements

As per Argentinan law, the minimum wage in Argentina will increase monthly and up to ARS 156,000 in December 2023.

Payroll Cost for Employers

The employer cost is generally estimated at 28% of the employee salary. Argentina maintains very high inflation rates, the fixed amounts may vary from month to month.

• Pension: 12.35%
• Law 19032 (Social Security): 1.58%
• Family allowance: 5.40%
• National employment fund: 1.07%
• Medical Insurance: 6.0%
• Accident Insurance (ART): 1.53% + ARS 200.13 (USD 0.71)
• Life Insurance: ARS 78.36 (USD 0.32)
• Optional health benefit monthly fee: USD 15
• Work from Home Allowance: ARS 18,450 (USD 50)
• Salary Bank Account in USD* – USD 20 (if applicable)

Private health insurance – estimated USD 50, final cost will be determined during onboarding

One time fees

• Mandatory Wet Ink Employment Agreement Handling Fee – USD 80
• Onboarding Medical Check – USD 130

Termination

Grounds

Terminations in Argentina have a high complexity. There is no at-will termination in Argentina for employers [outside the probation period].

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job
• By the expiration of the contract

Notice Period

The minimum notice period is 30 days and will be increased according to the length of the employment.

• 30 days if the length of service is less than 5 years
• 60 days if the length of service is more than 5 years

During the probation period, the notice period is 15 days.

Severance compensation

In Argentina, employees dismissed without a justified cause are entitled to severance pay (if they are not under probation). Underperformance and reorganization are not causes to justify dismissal under Argentine labor law.

Severance payment compensation will vary depending on the tenure of the employee since it is equivalent to one (1) month of salary per year of services rendered or per fraction greater than three (3) months.

Examples

• If an employee has worked for a period of 4 months and is terminated without cause, the employee is entitled to severance pay equivalent to 1 (one) month of salary.
• If the employee has worked for a period of 1 year and 2 months, the employee is entitled to severance pay equivalent to one (1) month of salary.
• If the employee has worked for a period of 1 year and 3 months, the employee is entitled to severance pay equivalent to two (2) months of salary.

Payment & leave Compensation & Holidays

SalaryPayment

Monthly

Payslip Payroll

If the company is going to set up an Argentine payroll, they will need some personal information from the employee, including their ID number, deductions, and job title. Employers must register all employees with the Argentine tax authorities and ensure that they retain the correct amount of tax from their employees’ salaries. Employees are also required to register with the Social Security Registry prior to the start date.

Annual Leave

Both full-time and part-time employees are entitled to 10 working (14 calendar) days of paid time off (PTO) a year. PTO and accrual rates vary depending on the length of services. Prior to completing 6 months of service, the Employee will be entitled to receive 1 day of annual leave for every 20 working days of service.

Sick Leave

Employees are entitled to paid sick leave whose length will depend on their seniority. If the employee has a seniority of fewer than 5 years, they will be entitled to 3 months of sick leave. For employees with a seniority higher than 5 years, sick leave will increment to 6 months. Sick leave is paid by the employer.

A medical certificate must be provided to the employer, and digital copies are allowed.

Employees are also entitled to leave for the following cases, where leave is paid as PTO:

• Marriage: employees are entitled to 10 calendar days to celebrate.
• Death of dependents, siblings, or parents: employees are entitled to 3 calendar days.
• High school or university exams: employees are entitled to 2 calendar days per exam, with a maximum of 10 calendar days per year.

Maternity & Parental Leave

Employees are entitled to 90 calendar days of paid leave. The standard is to take 45 days prior to birth, but it will be at the discretion of the employee if they want to wait until 30 days prior to the birth date to then accumulate 15 days after birth leave. The employee will receive a salary during this period, and Social Security will be responsible for this pay.

The employee can extend leave additional and receive 25% of the pay.

In Argentina, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Tax and Social Security Information

Personal Income Tax

The individual income tax ranges from 5% to 35%. Income tax is calculated [according to progressive rates]. Multiple additional factors may impact overall rates such as household status (rent or credit), number of dependents under 18, civil status, and geographical residence location.

Income tax as of January 2023 is:

Gross Annual Income	Tax Rate (%)
Up to ARS – 173,834.61	5%
Up to ARS – 347,669.23	9%
Up to ARS – 521,503.84	12%
Up to ARS – 695,338.47	15%
Up to ARS – 1,043,007.68	19%
Up to ARS – 1,390,676.90	23%
Up to ARS – 2,086,015.35	27%
Up to ARS – 2,781,353.85	31%
Over ARS – 2,781,353.85	35%

Social security

• Health Insurance
• Life Insurance
• National Social Security Fund
• Work Accident Compensation Insurance
• Private Healthcare – Allianz (optional)

Public Holidays 2024

假期	日期
New Year’s Day	1.1
Carnival	2.12-2.13
Truth and Justice Day	3.24
Maundy Thursday	3.28
Good Friday	3.29
Malvinas Day	4.1-4.2
Labour Day	5.1
Revolution Day	5.25
Martin Miguel de Guemes’ Day	6.17
Flag Day	6.20-6.21
Independence Day	7.9
Death of San Martin	8.17
Day of Respect for Cultural Diversity	10.11-10.12
National Sovereignity Day	11.18
Immaculate Conception	12.8
Christmas Day	12.25