Local Providers
We can Determine the top Payroll solutions in Argentina locally for you
Global Providers
Expand your business & relocate employees to Argentina using top global
PEO / EOR providers
Overview
Argentine Peso (ARS)
CURRENCY
Buenos Aires
CAPITAL
monthly
PAYROLL FRECUENCY
16
PUBLIC HOLIDAYS
26.91 to 29.91
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Argentina
Employer
Company Payroll Contributions
** All these percentages includes 100 ARS of trust for occupational disease (FFEP)
18% - 21%
Pension Fund, the minimum and maximum salaries are 9,787.95 and 318,103.83 ARS, respectively.
6% - 6%
Health Insurance
2.41% - 2.41%
Labor Risk Insurance
0.50% - 0.50%
Life Insurance
26.91% - 29.91%
Total Employment Cost
Employee
Worker Payroll Contributions (Ceiling max 28,000.65 ARS)
0%- 11%
Pension Fund
0%- 3%
Social Security
0%- 3%
Health Insurance
0% - 17%
Total Employee Cost
Employee Income Tax in Argentina
Worker Income Tax
5%
Up to 64,532.64
9%
64,532.64 – 129,065.29
12%
129,065.29 – 193,597.93
15%
193,597.93 – 258,130.58
19%
258,130.58 – 387,195.86
23%
387,195.86 – 516,261.14
27%
516,261.14 – 774,391.71
31%
774,391.71 – 1,032,522.30
35%
1,032,522.30 and up
Payroll Contributions in Argentina
Payroll Cycle
According to Sections 126 and 128 of the Argentina Labor Contract Law, payment is based on the type of contract that is in effect. Following are the payment methods:
- Employees employed on a monthly basis must be paid at the conclusion of each month.
- Weekly or biweekly payments must be made to employees earning a daily or hourly rate.
- Project-based employees must be paid either weekly or biweekly.
- Monthly or biweekly employees must receive their payments within four working days, whereas weekly employees must receive their payments within three working days.
To not forget about these specifications, most companies resort to hiring payroll outsourcing in Argentina organizations. With Employer of Record Argentina services, they obtain this and much more.
13th Salary
According to local legislation in Argentina, workers are entitled to a 13th-month paycheck, or Aguinaldo, which is an additional month's pay. Two semi-annual payments of this 13th-month wage are required. They are due by June 30 and December 18, respectively.
Each installment will cost 50.00% of the biggest monthly wage you obtained in the previous six months. When hiring payroll outsourcing services, these organizations will make sure to provide workers with the 13th salary on time.
Employee Benefit in Argentina
- Internet allowance.
- Mobile allowance.
- Gym allowance.
- Meal vouchers.
- Transportation allowance.
Visa and work permit in Argentina
Argentina recognizes three types of residency: transitory, temporary, and permanent.
- Except for technical residents, transitory residence is normally reserved for those staying in Argentina for less than 3 months.
- Foreigners who engage in technical or professional activity are given technical residency status. At the Argentinean Embassy in their native nation or region, or after visiting as a tourist, people can apply for this residency.
- Foreign individuals who have an invitation by a company with a presence in Argentina can obtain business residency. Only the foreigner's home country or territory's Argentinean Consulate will accept requests for this residency. This form of residency is for business purposes. It is valid for a period of 60 days and may be extended at the discretion of the immigration office.
Foreign nationals who wish to stay in the nation or territory for a lengthy period of time must apply for temporary residency. This type of housing that foreigners who work long-term for a local business use is a work residence. This one-year extension is possible for the Work Residence, which is good for one year.
Permanent Residency is for those individuals who desire to live in the nation permanently.
VAT in Argentina
In Argentina, the usual VAT rate is 21%. To keep compliance in place, most businesses hire Employer of Record Argentina firms.
Working Hours in Argentina
General
Working hours in Argentina are limited to 8 hours each day and 48 hours a week, excluding rest periods, according to employment laws in Argentina. However, restrictions relating to employment that is deemed harmful or with late shifts (9 pm–6 am) cap the amount of time a person can work at 7.
Overtime
No more than three hours of overtime per day, thirty hours every month, or two hundred hours annually may be worked without prior approval from the appropriate labor authority.
In contrast to overtime performed on a Saturday afternoon, Sunday, or a public holiday, which is paid at double the wage, overtime worked during the week is paid at an extra 50% of the salary. With a PEO, companies can calculate the extra hours workers do and pay their appropriate wages.
Working Week
Before starting to hire employees in Argentina, is important to know that, typically, workweeks go from Monday through Friday.
Employee Termination in Argentina
Termination Process
Unless it is due to mutual agreement, the employees' failure to complete their work duties, severe misbehavior, or economic grounds, the employer must explain any dismissal with notice.
Notice Period
Employees who have been with the organization for more than 3 months but much less than 5 years need to give one month's notice.
Employees who have been with the same employer for more than 5 years are required to give two months' notice. Having an Employer of Record Argentina firm by their side, is a great way for managers to create liable contracts.
Severance Pay
For every year of employment, severance pay is computed at one month's wage. If an employee's contract is terminated due to economic reasons, they will be paid half a month for each year of service.
According to the reason for termination, a worker may be eligible to remuneration for a part of the year they work and a portion of the 13th salary.
Furthermore, on December 23, 2021, decree No. 886/2021 continued the public crisis in occupational concerns and set the gradual decrease of the rise in severance benefits. In the event of termination, the impacted employee will have access to the following benefits in addition to the applicable severance pay:
- From 01/01/2022 to 28/02/2022, a 75% increase in severance.
- A rise of 50% of the ordinary severance from 01/03/2022 to 30/04/2022, and a 25% increase from 01/05/2022 to 30/06/2022. (These proportions will be computed after taking into account all severance items resulting from the end of the employment agreement and may not surpass 500,000 pesos). This doubling of pay does not apply to employees employed after December 13, 2019.
Probation Period
Argentina has a three-month probation period.
If the worker or the employer decides to end the contract without reason during the first 3 months of employment, the company is not required to pay compensation but must tell the employee 15 days in advance.
Employee Leaves in Argentina
Paid Time Offs
2 weeks of yearly leave are granted to workers who have been with a company for more than 6 months. Up to 35 days, the number of vacation days goes according to the length of continuous employment.
Per each 20 working days, new workers are eligible to one day of leave. A certified professional employer organization will help companies ensure that they provide their workers with this benefit.
Employees' entitlement to paid vacation in Argentina is based on how long they have worked for the company:
- Employees who have not been with their current employer for five years or more are eligible to 14 days off.
- The right to 21 days of leave will be in place for workers who have been with the same company for five to ten years.
- Employees who have been 10 to 20 years working for the same business are eligible to 28 days of leave.
- 35 days of leave are in place for workers who have over 20 years of service with one employer.
The employer shall pay the employee's full salary and all other benefits throughout the period of yearly leave. When calculating annual leave, the employee's entitlement to vacation days is multiplied by the wage payment, which is divided by 25. If calculating these benefits is too much for the manager, hiring a professional employer organization or an Employer of Record Argentina firm can be a great option.
Public Holidays
There are 16 national holidays throughout the year.
Vacation Holidays
There are 14 vacation holidays throughout the year.
Sick Days
An employee is only eligible for a maximum of three months of paid sick leave if they have not been with the company for five years. The amount of paid sick time is increased to six months for employees who have worked for the business for more than 5 years.
Nevertheless, the Employment Risk Insurance (which is a necessary protection for companies) pays any therapy, sick pay, or treatment for a job accident, illness, or injury. The company is accountable for providing sick pay.
Paternity Leave
New fathers have the right to two days of paternity leave pay.
Paternal Leave
In Argentina, there are no laws for parental leave.
Other Leave
The following scenarios provide workers the right to compensated time off:
- An employee has the right to ten days of marital leave.
- Employees are entitled to three days off for the loss of a kid, parent, or spouse, and one day off for the loss of a sibling.
- A worker has the right to two days' leave (maximum of ten days) for college or exams in high school.
Maternity Leave in Argentina
A woman must take a minimum of 30 days of her 90-day maternity leave before giving birth to the child. The leave is often split into 45 days along either side of the birth.
Maternity leave is compensated by the Argentine Social Security system.
There are 90 leave throughout the year.