Employer of Record in Argentina: how to hire compliantly without an entity.
Employ full-time employees in Argentina without setting up an entity. Locally compliant contracts, monthly payroll, statutory benefits, taxes. Below: what the law actually requires, in plain English.
- Country
- Argentina
- ISO code
- AR
- Region
- South America
- Phone code
- +54
- Employ Latam coverage
- Full EOR + contractor payments
Last updated July 2026
Overview
Argentina has one of the largest economies in Latin America and a deep pool of skilled professionals, particularly in technology, finance, and engineering. Hiring here also comes with real complexity. Labor law is detailed, collective bargaining agreements are common, and statutory obligations apply automatically, whether or not they appear in a written contract.
For companies without a local entity, an employer of record handles the contract, payroll, taxes, and statutory contributions so you can hire without setting up a legal presence in-country.
Country at a glance
| Currency | Argentine peso (ARS) |
| Working week | Monday to Friday |
| Standard workday | 8 hours (48-hour maximum week) |
| Probation period | Up to 3 months (extendable to 6 months by collective agreement) |
| Notice period | 15 days (during probation); 1 to 2 months depending on seniority |
| 13th-month salary | Yes. Aguinaldo paid in two installments: June and December |
| Payroll cycle | Monthly |
What this means in practice
A few things stand out when hiring in Argentina for the first time:
- Aguinaldo is mandatory. Every employee receives an extra month's salary, split across two payments per year. Budget for it from day one.
- Collective bargaining agreements (CBAs) are widespread. Many industries operate under sector-wide CBAs that set floors on pay, hours, and benefits. The applicable CBA depends on the employee's role and industry, not just what the contract says.
- Permanent contracts are the default. Argentine law treats most employment relationships as indefinite unless there is clear justification for a fixed-term arrangement. Fixed-term contracts must be in writing and cannot exceed five years.
- Statutory obligations apply automatically. Employers must cover mandatory life insurance, workplace accident insurance, and contributions to health and pension schemes. These are not optional add-ons.
- Minimum wage changes frequently. As of early 2025, the statutory minimum monthly wage is ARS 286,711 (roughly USD 300), but Argentina's inflation environment means this figure is updated regularly.
Employ Latam issues locally compliant employment contracts, runs payroll in Argentine pesos, and handles statutory contributions on your behalf. Onboarding is typically live within 72 hours of receiving the required employee details. You focus on managing the work.
Employment contracts and worker types
Argentina's labor framework defaults to the indefinite employment contract. If you don't specify otherwise in writing, that's what the law assumes. Understanding the available contract types helps you hire correctly from day one and avoid misclassification risk.
Contract types at a glance
| Contract type | Typical use | Max duration | Probation allowed |
|---|---|---|---|
| Indefinite (permanent) | Standard ongoing roles | No limit | 3 months (extendable to 6 for certain businesses) |
| Fixed-term | Project-based or time-limited work | 5 years | No statutory probation; contract terms apply |
| Part-time | Roles requiring limited hours (max 32 hrs/week) | No limit | Same as indefinite |
| Temporary | Replacing an absent employee or extraordinary need | 6 months in a 12-month period; 12 months in a 3-year period | No |
| Seasonal | Work tied to recurring cycles (agriculture, tourism) | Repeats each season | No |
| Learning | Training young workers aged 16 to 28 | Varies | No |
Fixed-term contracts must be in writing and must justify why the role is not permanent. Part-time contracts must also be written and specify the agreed hours. Indefinite contracts can be verbal, though written documentation is always the safer practice.
The contractor question
Argentina does not recognize a simple freelancer or independent contractor category for ongoing work. If someone works regular hours, follows your direction, and depends on you as their primary source of income, Argentine labor law will treat them as an employee regardless of what the contract says. Misclassification exposes you to back-paid benefits, social security contributions, and potential fines. If you need ongoing help, hire properly.
What the contract must cover
For any contract type that requires writing (fixed-term, part-time, temporary), the document needs:
- Full names, addresses, and tax ID numbers for both parties
- Job title and description of duties
- Start date, end date (if applicable), and probation terms
- Compensation: base salary, bonuses, and payment schedule
- Termination, notice, and severance terms
- Justification clause for fixed-term arrangements
Collective bargaining agreements (CBAs) are common in Argentina and often apply industry-wide. Your employee's role may fall under a CBA that sets minimum salary scales, working conditions, and benefits above the statutory floor. Always check which CBA applies before finalizing compensation.
How Employ Latam handles this
We issue a locally compliant employment contract that matches the correct contract type for your hire. Statutory contributions are handled, payroll runs in Argentine pesos, and onboarding is live in 72 hours. You focus on the work.
Payroll, taxes, and the 13th-month salary
Argentina runs monthly payroll. Salaries are paid once a month, denominated in Argentine pesos (ARS). As of January 2025, the statutory minimum monthly wage sits at ARS 286,711 (roughly USD 300), though that figure adjusts regularly given Argentina's inflation environment.
Employer and employee contributions
Argentina's social security system is administered through AFIP (Administración Federal de Ingresos Públicos). Both employer and employee contributions are calculated on gross salary.
| Contribution | Employer rate | Employee rate |
|---|---|---|
| Pension (SIPA) | 12.0% | 11.0% |
| Social security (INSSJP/PAMI) | 1.5% | 3.0% |
| Family allowances (ANSES) | 4.44% | 0% |
| Unemployment fund | 0.89% | 0% |
| Health insurance (obra social) | 6.0% | 3.0% |
| Total | ~24.83% | ~17.0% |
Employer rates vary slightly depending on the company's industry classification and annual revenue. Smaller companies may qualify for reduced employer contributions under AFIP's differential rate scheme. Budget a loaded employer cost of roughly 25% on top of gross salary as a working estimate.
Income tax (impuesto a las ganancias) is withheld from the employee's salary by the employer and remitted to AFIP monthly. The threshold and brackets shift frequently; as of 2025, employees earning above approximately ARS 1,800,000 per month are subject to withholding.
The aguinaldo (13th-month salary)
Every employee in Argentina is entitled to an aguinaldo. This is not discretionary. It equals one month of the highest salary earned during the preceding six-month period.
It is paid in two installments:
- First installment: on or before 30 June
- Second installment: on or before 18 December
Each installment equals half the highest monthly salary from that semester. Employers also pay social security contributions on the aguinaldo. Factor this into your annual cost model from day one: the aguinaldo adds roughly 8.3% to annual payroll cost before contributions.
How Employ Latam handles this
We run payroll in ARS, calculate and remit all AFIP contributions, withhold income tax, and process both aguinaldo installments on the statutory deadlines. You approve the payroll run; we handle the rest. Onboarding is live in 72 hours, with a locally compliant employment contract in place before your hire's first day. Pricing starts from $349 per employee per month.
Mandatory benefits, vacation, and parental leave
Argentine labor law sets a clear floor for what every employee must receive. Collective bargaining agreements (CBAs) often sit above that floor, so the actual entitlement for a given role may be higher than the statutory minimum. When you hire through an EOR, both layers are handled before your new hire's first day.
Leave entitlements
| Leave type | Entitlement | Paid by |
|---|---|---|
| Annual leave | 14 calendar days (0–5 years seniority); 21 days (5–10 years); 28 days (10–20 years); 35 days (20+ years) | Employer |
| Sick leave | 3 months (less than 5 years seniority); 6 months (5+ years); doubles if the employee has dependants | Employer |
| Maternity leave | 90 days total; typically 45 days pre-birth and 45 days post-birth; employee may shift up to 30 days pre-birth to post-birth | Social security (ANSES) |
| Paternity leave | 2 days | Employer |
| Public holidays | 15 national public holidays per year (exact count varies slightly year to year with bridge days) | Employer |
Aguinaldo (13th salary)
Every employee in Argentina is entitled to an aguinaldo. It equals one month of salary, paid in two installments: 50% by 30 June and 50% by 31 December. The calculation is based on the highest monthly salary earned in each half-year period. This is a statutory obligation, not a discretionary bonus.
Other mandatory benefits
- Mandatory life insurance. Employers must carry group life insurance for all employees.
- Work accident insurance (ART). Employers must register with a labor risk insurer (Aseguradora de Riesgos del Trabajo). This covers workplace injuries and occupational illness.
- Health coverage (obra social). Contributions to the national health system are mandatory. Employees choose from registered obras sociales. Contributions come from both employer and employee payroll deductions.
- Pension contributions. Both parties contribute to the national pension system (SIPA) through payroll.
Working hours
The statutory cap is 8 hours per day and 48 hours per week, excluding overtime. Hours beyond that threshold attract overtime premiums, typically 50% above the regular rate on weekdays and 100% on Sundays and public holidays.
What an EOR handles
Employ Latam runs payroll in Argentine pesos, calculates and remits social security contributions, pays out aguinaldo on the correct dates, and ensures the employment contract reflects applicable CBA obligations. Onboarding goes live in 72 hours. Pricing starts from $349 per employee per month.
Severance, termination, and notice periods
Argentina's Labor Contract Law (Law 20.744) sets firm rules on how employment ends. Getting this wrong is expensive. Severance in Argentina is calculated on the employee's best monthly salary, not an average, and the amounts add up quickly.
How termination works
There are four ways to end an employment relationship:
- Mutual agreement: Both parties sign a written settlement. Severance may still apply depending on what is negotiated.
- Resignation: The employee gives written notice. No severance is owed by the employer.
- Dismissal with just cause: The employer must document a serious breach (misconduct, repeated violations). If the cause does not hold up, it converts to without-cause dismissal.
- Dismissal without cause: The employer can terminate at will but must pay full severance plus notice.
Without-cause dismissal is the most common scenario and the most costly. There is no performance-improvement-plan requirement before terminating, but documentation of the decision is still important.
Notice periods
Notice must be given in writing. If the employer skips notice, they owe a substitutive payment equal to the salary for the notice period.
- Probation period (first 3 months): 15 days notice
- Up to 5 years of tenure: 1 month notice
- More than 5 years of tenure: 2 months notice
Severance table
Severance without cause is calculated as one month of the employee's highest normal monthly salary in the last year, per year of service (or fraction greater than 3 months). The floor is one month's salary.
| Tenure | Notice period | Severance owed (without cause) |
|---|---|---|
| Less than 1 year | 15 days (probation) or 1 month | 1 month's salary (minimum floor) |
| 1 to 3 years | 1 month | 1 to 3 months' salary (1 month per year) |
| 3 to 5 years | 1 month | 3 to 5 months' salary (1 month per year) |
| 5+ years | 2 months | 1 month per year of service, no statutory cap |
Salary used for the calculation is the highest normal monthly remuneration received in the last year, including any recurring bonuses or allowances. The aguinaldo (13th salary) accrual is also settled on exit, prorated to the last payment date.
What else is owed on termination
- Prorated aguinaldo for the portion of the semester worked
- Accrued and unused vacation days, paid out at the daily salary rate
- Any outstanding expense reimbursements or commissions
Argentina does not have a severance fund equivalent to Brazil's FGTS. Severance is paid directly by the employer at the time of termination. For EOR arrangements, Employ Latam handles the calculation and the payment run so nothing is missed.
Recent regulatory changes
Argentina's labor and economic policy has moved quickly over the past two years. The Milei administration's reform agenda, combined with ongoing inflation adjustments, has produced several changes that directly affect how you hire, pay, and terminate employees in Argentina.
Staying current matters here. Minimum wages adjust frequently, new labor reform legislation passed in 2024, and compliance obligations shifted as a result. Here is what changed and what it means for employers.
| Date | Change | Impact on employers |
|---|---|---|
| July 2024 | Ley Bases (Law 27.742) passed, introducing a new "RIGI" investment incentive regime and initial labor flexibility provisions | Employers in qualifying sectors can access streamlined hiring rules; general labor code unchanged for most hires |
| August 2024 | Minimum wage (SMVM) raised to ARS 234,315/month | Payroll floor increased; all employment contracts must meet or exceed this figure |
| October 2024 | SMVM raised again to ARS 257,580/month | Second adjustment within three months; payroll systems required rapid updates |
| January 2025 | SMVM raised to ARS 286,711/month (approx. USD 300) | Current floor; budget accordingly, but expect further adjustments given ongoing inflation |
| February 2025 | AFIP restructured into ARCA (Agencia de Recaudación y Control Aduanero) | Tax authority renamed and reorganized; employer registration and contribution filings now processed through ARCA portals |
| March 2025 | Collective bargaining wage rounds (paritarias) for major unions concluded above 100% annual increases in several sectors | Sector-specific salary floors rose sharply; employers bound by applicable CBAs must apply new scales immediately |
What this means in practice
The SMVM adjustments are the most operationally urgent change. Argentina has historically updated the minimum wage multiple times per year, and 2024 to 2025 followed that pattern. If you are paying at or near the floor, you need a payroll process that can absorb mid-year increases without manual intervention.
The ARCA transition is largely administrative. Employer contribution filings, social security payments, and tax registrations now route through the new portal. The underlying rates and obligations did not change, but login credentials and form references updated.
For employees covered by collective bargaining agreements (CBAs), the paritaria outcomes are binding regardless of what individual contracts say. Key sectors with large paritaria increases in this cycle include:
- Commerce workers (Empleados de Comercio)
- Banking and financial services
- Metalworkers (UOM)
- Public and private health workers
If your hire falls under one of these CBAs, the applicable salary floor is almost certainly above the SMVM. Employ Latam tracks these scales and applies the correct floor to each employment contract at onboarding.
Frequently asked questions
- Do I need a local entity to hire employees in Argentina?
- No. An employer of record acts as the legal employer in Argentina on your behalf, so you can hire without registering a local company. The EOR issues the employment contract, runs payroll, and handles all statutory contributions. You direct the employee's day-to-day work.
- What is the most common employment contract in Argentina?
- The indefinite (permanent) contract is the default and by far the most common arrangement. Argentine law assumes this type of contract unless the parties explicitly agree otherwise in writing. For most roles, this is the right choice: it gives the worker stability and gives you a clear, well-understood legal framework to operate within.
- What is the total employer cost on top of gross salary in Argentina?
- Expect approximately 25% above gross salary for statutory social security and health contributions, plus the aguinaldo effect of roughly 8.3% spread across the year. Industry classification and company revenue can shift the contribution rate slightly, so the final number varies. Build in at least 33% above gross as a conservative total annual cost buffer when modeling headcount.
- How is annual leave calculated for a new hire in Argentina?
- Annual leave in Argentina is tied to seniority, not a flat number of days for everyone. A new employee with less than five years of service gets 14 calendar days of paid vacation per year. That rises to 21 days at five years, 28 days at ten years, and 35 days at twenty years or more. Employees must have at least six months of service in the calendar year to qualify for their full entitlement; shorter service accrues on a pro-rata basis.
- How much severance is owed for terminating an employee without cause in Argentina?
- The formula is one month of the employee's highest normal monthly salary in the last year, for each year of service or fraction greater than three months. There is no statutory cap on the total amount, so a five-year employee earning a high salary can represent a significant cost. On top of severance, the employer also owes a substitutive notice payment if notice was not given, plus prorated aguinaldo and unused vacation.
- What are the most recent labor law changes in Argentina that affect foreign employers?
- The two most practical changes from the past 24 months are the repeated minimum wage increases (four adjustments between mid-2024 and early 2025) and the restructuring of the tax authority from AFIP to ARCA in early 2025. Ley Bases introduced investment incentives but left the core Labor Contract Law (Law 20.744) intact for standard employment relationships. Employers should also monitor paritaria outcomes for the relevant industry CBA, since those wage floors update independently of the SMVM and are legally binding.
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