Employer of Record in Argentina: how to hire compliantly without an entity.
Employ Latam is an employer of record in Argentina. We become the legal employer for your hire, so you can employ full-time staff there 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 most structured labor codes in Latin America, built around the Labour Contract Law and a dense set of collective bargaining agreements. Hiring here rewards precision: contracts, registration, and payroll all need to happen correctly from day one, since retroactive fixes are harder than getting it right up front. Employ Latam handles the local employment relationship so you can bring on talent in Argentina without setting up an entity or learning the statute yourself.
Indefinite employment is the legal default. Fixed-term contracts are allowed only with a written reason and a defined end date, capped at five years. Probation typically runs six months, during which either party can end the relationship without the standard notice requirement. Employees must be registered before their first day, and payroll needs to run through Argentina's tax and social security system (ARCA) from the start.
A few things make Argentina distinct from other LATAM markets:
- SAC (aguinaldo) is mandatory and paid in two installments, June and December, each equal to half the highest monthly salary earned in that semester.
- Severance for dismissal without cause is based on tenure: one month's salary per year of service, with a minimum of one month.
- Employer social contributions run close to 28% of gross pay when combining pension, health, family allowances, and related funds, on top of separate occupational-risk insurance and compulsory life cover.
- Union and collective agreements are common and can set higher minimums, longer probation, or added benefits depending on the sector and job classification.
Country at a glance
| Category | Details |
|---|---|
| Currency | Argentine peso (ARS) |
| Working week | 48 hours (general statutory maximum) |
| Standard workday | 8 hours |
| Probation period | Up to 6 months (extendable under some collective agreements) |
| Notice period | 1 month (up to 5 years' service), 2 months (over 5 years); waived during probation |
| 13th-month salary | Mandatory (SAC/aguinaldo), paid in two installments: June 30 and December 18 |
| Payroll cycle | Monthly, paid within 4 working days of month-end |
Employ Latam takes care of registration, payroll, statutory contributions, and the local contract paperwork. You manage the day-to-day work; we manage compliance with Argentine labor law.
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.
Hiring a contractor in Argentina
Many teams start with a contractor in Argentina before they hire an employee. We draft the contractor agreement, collect the contractor's local tax ID, pay them in local currency or USD, and withhold tax where Argentina requires it. You approve invoices and pay one USD invoice.
Contractor or employee
Before you start, we review the role and tell you whether it looks more like a contractor or an employee. How Argentina law draws the line is covered above.
When to convert
A contractor who works only for you, keeps set hours and uses your tools is effectively an employee under most Latin American labor law. We can move them onto an employment contract with us: same person, same pay.
Contractor payments from $29 per contractor per month.
Payroll, taxes, and the 13th-month salary
Payroll in Argentina runs on a monthly cycle, with wages due within four working days of month-end. Wages must be paid into an account in the employee's name, and pay can be set in national or foreign currency, though local practice and statutory floors apply regardless of currency.
Argentina requires the Sueldo Anual Complementario (SAC), commonly called aguinaldo or 13th-month salary. It's paid in two installments: one due June 30, one due December 18. Each installment equals 50% of the highest monthly remuneration accrued in that semester. The December installment is initially estimated and reconciled against actual December pay. Employees who leave partway through the year receive a proportionate SAC on exit.
Income tax withholding uses a progressive, cumulative scale applied to net taxable income after allowable deductions, not a flat rate on gross pay. Employer social security contributions run either 18% or 20.40% depending on employer category, plus a separate 6% health contribution, so budgeting a single "28.3%" blended figure is inaccurate. A 2026 hiring incentive (RIFL) can reduce specific employer contributions for eligible new hires over 48 months, subject to conditions.
Employer and employee contributions
| Contribution | Employer rate | Employee rate |
|---|---|---|
| Pension (SIPA) | 12.35% | 11% |
| Health insurance (Obra Social) | 6% | 3% |
| Family allowances (ANSES) | 5.56% | None |
| National Employment Fund | 1.11% | None |
| Social services for retirees (INSSJP/PAMI) | 1.38% | 3% |
| Total | ~28.29%* | 17% |
*The blended 28.29% employer figure is illustrative. Actual employer social security is charged at either 18% or 20.40% depending on employer size and category, plus a separate 6% health contribution; occupational-risk insurance (ART), compulsory life cover, and SAC-driven costs are additional and budgeted separately.
Other payroll facts to plan around:
- Minimum wage: ARS 383,800/month as of September 2026, rising in scheduled steps through 2027.
- Pension contribution base: minimum and maximum bases are published monthly by ARCA and must be applied per payroll cycle, not treated as a salary cap.
- Vacation pay: calculated by dividing monthly salary by 25, and it's due when leave starts, not on the following payday.
- Corporate tax: 35%. VAT: 21%. Both relevant if the client is assessing broader tax exposure, though an EOR arrangement doesn't create local corporate tax liability for the client itself.
Employ Latam runs Argentine payroll against these bases, calculates SAC installments automatically, and files the required contributions so the client doesn't have to track ARCA's published tables or the semester-based SAC math directly.
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 | 16 national public holidays in 2026 (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 18 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 framework has moved quickly since late 2024, with 2026 bringing the most concrete changes: a new hiring incentive, a scheduled fund contribution, an updated minimum wage track, and a formal timeline for retiring the pandemic-era remote work law. Employers hiring through an EOR do not have to manage these changes directly, but it helps to know what is shifting and when.
| Date | Change | Impact on employers |
|---|---|---|
| 2026 (ongoing) | RIFL hiring incentive introduced: reduces specified employer contributions (2% combined pension/employment/family-allowance, 3% INSSJP) for eligible new hires for 48 months | Lowers employer cost for qualifying new hires; eligibility depends on the worker's prior status and employer compliance, so it is not automatic |
| 1 September 2026 | National minimum wage set at ARS 383,800/month (ARS 1,919/hour) | Sets the payroll floor for full-time roles from this date |
| 1 October 2026 | Minimum wage rises to ARS 391,200/month | First step in the announced quarterly-ish increase schedule |
| 1 November 2026 | Minimum wage rises to ARS 398,800/month; Labour Assistance Fund scheduled to start (Decree 408/2026) | Employer contribution of 1% (large employers) or 2.5% (qualifying SMEs) begins, with a corresponding reduction in specified social security contributions once active |
| 1 December 2026 | Minimum wage rises to ARS 406,400/month | Continued wage-floor adjustment employers must apply before each payroll run |
| September 2026 | ARCA publishes pension contribution base minimum (ARS 144,363.55) and maximum (ARS 4,691,748.47) under ANSES Resolution 257/2026 | Contribution bases change month to month and must be checked against the payroll period, not treated as fixed |
| 1 January 2027 (scheduled) | Law 27,802 repeals Law 27,555 (remote-work law) | Written hours, disconnection rights, equipment support, and connectivity-cost compensation remain in force until the repeal date; contracts signed before then must still comply |
Employers should also note that the 2026 wording on employment presumption (articles 21-23) narrows the automatic classification of certain independent-service arrangements supported by invoices, though this does not make contractor status automatic; actual duties and supervision still control the analysis. Separately, voluntary written agreements for hours banks or compensatory rest are now permitted under 2026 rules, provided limits and records are agreed in writing.
None of these changes require action from the client company when hiring through an EOR. Employ Latam tracks minimum wage steps, contribution base updates, and incentive eligibility as part of payroll administration, and adjusts pay and filings on schedule.
Frequently asked questions
- Do I need a local entity to hire employees in Argentina?
- No. Employ Latam employs the person on your behalf through our registered local employment setup, so you don't need to incorporate an entity in Argentina. You direct the employee's day-to-day work while we handle the contract, payroll, tax withholding, and statutory contributions. This typically gets a new hire onboarded much faster than setting up a local entity from scratch.
- 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.
- When is the 13th-month salary (aguinaldo) paid in Argentina?
- The SAC is paid in two installments each year: one by June 30 and one by December 18. Each installment is 50% of the highest monthly salary paid in that semester, with the December amount reconciled against actual pay. Employees leaving mid-year receive a proportionate SAC payment as part of their final settlement.
- 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.
- Will the end of Argentina's remote-work law in 2027 change how remote employees are managed?
- Not immediately. Law 27,555, which currently governs written working hours, digital disconnection, and compensation for added connectivity costs for remote employees, is scheduled for repeal on 1 January 2027 under Law 27,802. Until that date, employers must keep complying with the current rules, and any transition should be reviewed closer to the effective date rather than assumed in advance.
We handle the contract, payroll, taxes, and benefits in Argentina so you can hire that person this month.
Statutory figures for Argentina, each traced to a named source with its reference year. Sourced from OECD, the World Bank, the ILO, ISSA and national statutes.
Latest reference period: 2026
| Annual income | Marginal rate |
|---|---|
| 0 – 1,749,902 | 5% |
| 1,749,902 – 3,499,803 | 9% |
| 3,499,803 – 6,999,607 | 12% |
| 6,999,607 – 10,499,410 | 15% |
| 10,499,410 – 17,499,017 | 19% |
| 17,499,017 – 24,498,624 | 23% |
| 24,498,624 – 34,998,034 | 27% |
| 34,998,034 – 53,153,257 | 31% |
| 53,153,257+ | 35% |
Figures are statutory reference values maintained internally and refreshed against primary sources. They are a starting point for planning, not legal advice — we confirm the exact numbers for your role before you hire.
What changed in Argentina
Checked against official sources on .
No rule changes recorded since we began logging them.
What a hire in Argentina costs
Employers in Argentina pay statutory contributions of 28.29% on top of gross salary. At the average monthly wage of ARS 1,006,879, that adds ARS 284,846 a month.
| Salary | Gross per month | Employer contributions | Total per month | Total per year |
|---|---|---|---|---|
| Minimum wage | ARS 383,800 | ARS 108,577 | ARS 492,377 | ARS 5,908,524 |
| Average monthly wage | ARS 1,006,879 | ARS 284,846 | ARS 1,291,725 | ARS 15,500,703 |
Employer contribution rate: ISSA Country Profiles, as of Jan 2024
Minimum wage: National government, as of Sept 2026
Average monthly wage: ILOSTAT, as of Jan 2025
Amounts in ARS. Totals per year are twelve monthly salaries plus contributions.
What the contributions pay for
- Pension, invalidity and survivors10.77%
- Family benefits9%
- Health and long-term care7.58%
- Unemployment insurance0.94%
Components: ISSA Country Profiles, as of Jan 2024
On top of this: the 13th salary where the law requires one, paid leave, and notice and severance if the employment ends (all in the tables above), plus our employer of record fee, from $349 per employee per month. Every quote we send breaks each of these out for the actual role.
Found someone in Argentina? Let's employ them.
We'll send a fully-loaded cost breakdown for the role within a few hours, then draft a locally compliant employment contract. Most Argentina hires can start within 1 to 3 business days once docs are in.
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