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Employer of Record Argentina | Employment Contracts and Hiring Options in Argentina

employer of record argentina

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax

Discover valuable information about employer of record in Argentina, including payroll cycles, employer and employee contributions, minimum wage regulations, hiring practices for employees, contractors, and expatriates, background checks, employment contracts, onboarding procedures, employee benefits, social security requirements, healthcare and insurance, leave policies, public holidays, work permits and visas, probation and notice periods, termination and severance processes, as well as personal income tax considerations.

CapitalBuenos Aires
Time zoneUTC−03:00 (ART)
Total Time zones1
Working hours per week40
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadline10 June (aprox)
Financial Year1st January to 31st December
Date formatdd/mm/yyyy
CurrencyArgentine Peso (ARS)
VATthe standard rate is 21%

Employer Payroll Contributions in Argentina

Employers% of Gross Salary
Social Security6%
Health Insurance6%
Work Risk Insurance2.05%
Life Insurance19.03 ARS
Total Employment Cost45.08%

Employee Payroll Contributions in Argentina

Employees% of Gross Salary
Social Security3%
Health Insurance3%
Total Employee Cost17%

Minimum Wages in Argentina

Minimum Wage
Minimum Wage 28080 ARS per month.

Payroll Cycle in Argentina

Payroll CycleMonthly
13th SalaryMandatory.

Personal Income Tax in Argentina

Income Tax
0 - 64,532.64 ARS 5%
64,532.64 - 129,065.29 ARS 9%
129,065.29 - 193,597.93 ARS 12%
193,597.93 - 258,130.58 ARS 15%
258,130.58 - 387,195.86 ARS 19%
387,195.86 - 516,261.14 ARS 23%
516,261.14 - 774,391.71 ARS 27%
774,391.71 - 1,032,522.30 ARS31%
1,032,522.30 and over ARS 35%

Employment Contracts in Argentina

Employment contracts in Argentina do not have a specific legal requirement regarding their form, allowing them to be executed in various ways, including written or oral agreements, unless specific laws or collective agreements state otherwise. However, it is advisable for employers to have written employment contracts in place.

Regarding probationary periods, the maximum duration allowed is three months. Once this period ends, the employee automatically becomes an indefinite-term employee.

While the law does not mandate specific policies, it is highly recommended for employers to implement certain policies to prevent potential conflicts, such as bonus policies.

No third-party approval is necessary for employment contracts or any related policies in Argentina.

Hiring Options in Argentina

When it comes to hiring in Argentina, employers have several options to consider:

  1. Employees: Employers can hire full-time or part-time employees on either fixed-term or indefinite-term contracts. Trainees can also be hired to provide a learning experience within the organization.
  2. Independent Contractors: Contractors can be engaged when there is no labor relationship, meaning there is no direction or subordination, economic dependence, or other indicators of a labor relationship as mentioned above. It is crucial to properly classify contractors to avoid misclassification risks.
  3. Agency Workers: Employers also have the option to engage workers through authorized agencies. The employer and the agency share joint and several liability for all labor obligations arising from the worker's employment.

Factors that indicate a labor relationship for employees include the employee's availability to work for the employer, the employer's direction and subordination of the individual, instructions given for services and duties, adherence to a set schedule, performing similar tasks as other employees, having identification and a corporate email from the employer, and working exclusively for the employer. The extent of economic dependence and receiving a fixed remuneration are also taken into account.

Misclassification can lead to severe sanctions, fines, and obligations towards social security contributions. Failure to register an individual as an employee or incomplete registration can result in penalties, including doubled severance payments owed to misclassified employees. Employers may face additional fines if they fail to pay the correct severance amount requested by the contractor and the contractor files a judicial claim.

According to Article 30 of the Labor Contract Law No. 20,744 (LCL), employers are responsible for ensuring that the agency fulfills all applicable labor and social security obligations related to the engaged worker. This includes payment of social security contributions and the provision of occupational risk or life insurance policies.

Understanding the different hiring options in Argentina is essential to comply with labor regulations and avoid potential risks and penalties associated with misclassification or non-compliance with labor obligations.