Overview

Often regarded as a high-income economy endowed with a large population of highly educated and skilled workers, Argentina can be a rewarding location for businesses that want to expand into the region,  

The country has a literacy rate of 99.51% as of 2021, the best in South America,  a diversified industrial base and a very strong agricultural sector.

Argentina boasts a wealth of natural resources, contributing significantly to its impressive Gross Domestic Product (GDP) of 487.2 billion, ranking 27th globally.

Despite facing economic challenges from high debt and fiscal deficits, the country boasts a remarkable Human Development Index (HDI) of 0.842, putting it in a strong 47th place worldwide and second in all of Latin America.

 

Capital                                                 Buenos Aires

Languages spoken                             Spanish

Population size                                    45.8 million

Payroll frequency                                Monthly

Currency                                             Argentine Pesos (ARS)

VAT                                                      Standard VAT of 21% / 27% for telecoms,

                                                            water, electricity, and gas / 10.5% for

                                                            medical, construction, most foods

                                                            and electronic goods produced

                                                            in Special Economic Zone

 

For more economical and fiscal information about Argentina, visit the dedicated section.

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Payroll and taxes in Argentina

Employer contributions in Argentina

The contributions that employers are obliged to make are the following:

• 18% or 21% to Pension Fund (depending on size of company and how many employees)

• 6% for health insurance

• 2.41% Labor Risk Insurance

• 0.5% for each employee with Life Insurance

• 100 ARS for Occupational Disease Fund (FFEP)

In total, it ranges from 26.5% to 30% of the employment cost for each employee.

Employee contributions

There are a few employee contributions that workers are obliged to pay in Argentina. This includes:

• Pension Fund - 11%

• Social Security Contribution - 3%

• Health Insurance - 3%

All of these three contributions hold up a ceiling of a max 28,000.65 ARS each. In total, it’s equal to 17% of the employee's salary.

Personal income tax

When it comes to personal income tax, Argentinian law is very straightforward with set percentage rates according to the monthly gross salary.

Check the table below for the full rate list:

up to             64.832,64                                                        5%

from              64.532,64       to          129.065,29                  9%

from              129.065,29     to          193.597,93                 12%

from              193.597,93     to          258.130,58                 15%

from              258.130,58     to          387.195,86                 19%

from              387.195,86     to          516.261,14                 23%

from              516.261,14     to          774.391,71                 27%

from              774.391,71     to          1.032.522,30              31%

over           1.032.522,30                                                     35%

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Minimum Wage in Argentina

The minimum wage rate is set to be increased to 69,500 ARS (376 USD) per month by March 2023. The current minimum wage in Argentina is set at 57,900 ARS per month, which corresponds to a 333 USD monthly salary. That equals a annual salary of roughly 4,000 USD.

Working Hours in Argentina

Working hours in Argentina are the regular eight hours per day, usually from Monday to Friday from 9am to 6pm, with an obligatory hour for lunch. Also, the Employment Contract Law states that working hours shall not exceed eight hours a day or 48 hours a week (no rest time included). If it does, it’s classified as overtime.

Overtime in Argentina

Overtime hours in Argentina are limited to three hours per day, 30 hours per month or 200 hours per year. Exceptions to this demand authorisation from the Ministry of Labor. If these overtime hours are performed during the regular week, workers should be compensated with there’s an additional 50% of their salary. If these hours are done on Sundays, Public Holidays or after 1 PM on Saturdays, the amount per hour is doubled.

Probationary period in Argentina

Probation period in Argentina takes up to three months. If during this time the employer decides to terminate the contract without cause, there's no obligatory pay of severance. The only requirement is to notify the employee at least 15 days in advance. After that time, the worker is considered a a permanent employee.

Employee Benefits in Argentina

13th-month salary

An extra salary is paid in two installments over the year for each employee. The first installment must be paid before the 30th of June and second one before 18th of December.

 

Types of leave available in Argentina

See below the list and explanation of every kind of leave available for employees in Argentina.

Annual Leave

According to Argentine labor laws, the amount of days for annual leave depends on how long the employee has been working in the company.

The maximum time for this leave is 35 days, and every worker is entitled to two weeks of annual leave after completing the first six months with the organisation. Newly hired employees gain one day of leave for every 20 days worked.

Refer below to see how the number of days increases according to the length of continuous employment:

• More than six months, less than five years: 14 days of leave

• Five to ten years of service: 21 days of leave

• Ten to twenty years of service: 28 days of leave

• More than twenty years of service: 35 days of leave

It’s good to remember that annual leave is paid in full by the employer, including bonuses and other benefits and perks.

Sick Leave

All employees are entitled to sick leave, but the amount of time also depends on how long the worker has been with the company. For the ones that are employed for less than five years, they can have a maximum of 3 months of leave. If they have been employed by the same organisation for over five years, their sick leave entitlement is increased to six months.

The payment is made in full during this time, covered by the employer. However, the compulsory Labor Risk Insurance that companies have to pay covers treatments, sick pay and even rehabilitation for work-related injuries or diseases.

Maternity Leave

Maternity leave is defined as a 90-day leave. The only difference is that 30 of the 90 days have to be taken immediately prior to the baby’s birth. This leave is fully paid by the Social Security system.

Paternity Leave

New fathers have two days to take after the birth of each child. These days are also paid in full by Social Security.

Bereavement, marriage and school exams leave

There are also leaves in case of marriage (10 days in total), death of family members (three days in total) and in case of studying for exams in university or high school (three days at a time, total maximum of 10 days).

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Public Holidays in Argentina

In total, there are 16 public holidays in Argentina, although they may vary sometimes by region.

• New Year's Day - 1 January

• Carnival (2 days) - 47 days before Easter

• Truth and Justice Day - 24 March

• Malvinas Day - 2 April

• Good Friday * - Last Friday before Easter

• Labour Day - 1 May

• Revolution Day - 25 May

• Martín Miguel de Guemes Day - 17 June

• Flag Day - 20 June

• Independence Day - 9 July

• Death of San Martin - 21 August

• Day of Respect for Cultural Diversity - 12 October

• National Sovereignty Day - 20 November

• Immaculate Conception - 8 December

• Christmas Day - 25 December

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Termination and probation in Argentina

The legal requirements for termination of contract states that it must be acknowledged by the employer in any case. The exception to this is when termination happens through mutual agreement.

Misconduct from the employee, economic factors in the company or failure to fulfil work-related tasks are all examples of motives for termination.

Notice Period

Notice periods are also affected by the amount of time the worker has been with the company. For employees employed for more than three months but less than five years, the notice period should be one month. For those employed for five years or more, it’s obligatory to have a two-month notice period.

Severance pay

When an employee is dismissed, severance pay is calculated according to time served at the company. For each year at the company, they get a month's worth of salary, except when terminated for economic reasons, then it’s half a month’s pay for every year in the organisation.

Other bonuses such as 13th salary are also paid in proportion to the year worked. For example, if an employee is dismissed in October, they are entitled to 10/12 of the extra remuneration.

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Do you need to hire employees in Argentina?

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Talk to us

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Contact

Mrs. Emanuela Ferina

Head of Global Payroll

emanuela.ferina@studio-bcs.com

Phone 0039 0 363 360254

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