Hire in Argentina

EOR in Argentina

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Argentina, an employer of record may be the best option for achieving your global growth objectives. 

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Argentina ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity. 

Learn about the hiring, employment, payroll and benefits requirements for workers in Argentina and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs

Hiring in Argentina

The Argentine Constitution guarantees “dignified and equitable working conditions,” fair and equitable remuneration, and protection against arbitrary dismissal, among other labor rights. Specific legislation such as the Employment Contract Law implements these rights.

There is no requirement in Argentina that an employment contract be in writing or take any particular form, although the act of hiring an employee creates an implicit contract in any case.  

Employment contracts in Argentina

As you look to hire employees in Argentina, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Normal working hours are a maximum of eight per day and 48 per week from Monday through Saturday.

There must be at least 12 hours between the end of one shift and the beginning of the next. Workers are generally entitled to be off work from 1 p.m. Saturday until Monday.

Employees cannot be required to work more than 3 overtime hours in a day, 30 in a month, or 200 in a year.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective July 1, the monthly minimum wage has increased to 254,231.91 Argentine pesos (US$273.65) and the hourly minimum wage to 1,271.16 pesos (US$1.36).
• Effective August 1, the monthly minimum wage will increase to 262,432.93 pesos (US$282.45) and the hourly minimum wage to 1,312.16 pesos (US$1.41).
• Effective September 1, the monthly minimum wage will increase to 268,056.50 pesos (US$288.52) and the hourly minimum wage to 1,340.28 pesos (US$1.44).
• Effective October 1, the monthly minimum wage will increase to 271,571.22 pesos (US$292.29) and the hourly minimum wage to 1,357.86 pesos (US$1.46).
• Workers are paid double time for working on a holiday.
• The overtime premium is 50% of the regular rate (time and a half) for work performed from Monday until 1 p.m. on Saturday (beyond the maximum eight hours per day and 48 per week) and 100% (double time) for work performed on Saturdays after 1 p.m. and on Sundays.
• Daily workers should be paid weekly or biweekly, and salaried workers, monthly. Payment must be no later than four working days following the end of the pay period for monthly or biweekly wages, three days for employees paid weekly. 

 As your employer of record in Argentina, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Employers are required to pay lower-income employees a one-time bonus in December to help with rising inflation. Under the 2022 decree, employers must pay the bonus to workers earning net wages up to three times the monthly minimum wage in effect for December.

Probationary period

A new worker can be put on probation for up to three months, during which either the worker or the employer can end the employment relationship without explanation, although 15 days’ notice must be provided.

Termination and severance

An employer can terminate an employee’s labor contract with or without just cause.

The notice period varies per the length of the employment connection as follows: 

• 15 days for employment under three months
• One month for employment between three months to five years
• Two months for Employment over five years

The employer is entitled to dismiss an employee without paying severance in the case of gross misconduct by the employee. In cases of a massive decrease in the amount of work not caused by the employer, the employee can be dismissed for business-related reasons and be paid a reduced severance of 50% of the regular entitlement.

Employees who leave an employer for any reason are entitled to be compensated for the vacation leave and annual bonus they have accrued so far that year. Employees terminated without cause are also entitled to one month’s salary for each year of service or a fraction of a year greater than three months. 

Employee benefits and paid leave in Argentina

When negotiating terms of an employment contract with a candidate in Argentina, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female employees are entitled to maternity leave of 45 days before and 45 days after delivery, although the employee is entitled to switch up to 15 days from the prenatal to the postnatal period, and a social allowance corresponding to her salary for the time she is on leave. During maternity leave the female worker is entitled to cash benefits paid by the Social Security funds.

Once a mother returns to work, the law requires that she be allowed two daily nursing breaks of 30 minutes each or a single hour-long break for up to one year after the birth.

At the end of maternity leave, women who have been with a company for at least a year may take additional unpaid leave of from three to six months.

Vacation

Workers who have completed at least six months with the same employer over a 12-month period are entitled to paid annual leave as follows:

• 14 days for fewer than five years of service
• 21 days for five to 10 years
• 28 days for 10 to 20 years
• 35 days for more than 20 years 

Workers who have not completed six months of service get one day off for every 20 days worked.

Holidays

The following 13 public holidays are observed in Argentina:

• New Year’s Day
• Carnival (two days in February or March) 
• National Day of Memory for Truth and Justice 
• Veterans Day and Day of Those Who Died in Malvinas (Falklands) War 
• Good Friday 
• Labor Day 
• First National Government 
• Flag Day 
• Independence Day 
• Death of General Jose de San Martin 
• Columbus Day (Día de Respeto a la diversidad Cultural) 
• Immaculate Conception 
• Christmas 

If Flag Day, the anniversary of the death of General Jose de San Martin or Columbus Day falls on a Tuesday or Wednesday, it is moved backward to Monday; if it falls on a Thursday or Friday, it is moved forward to the next Monday.

Jewish workers are entitled to the following days off: 

• Passover (the first and last two days) 
• Rosh Hashana (first and second days) 

 Muslim workers are entitled to the following days off: 

• Feast of Sacrifice 
• Islamic New Year 
• Completion of the Fast 

The government may also declare up to three additional holidays (known as tourist bridge holidays) per year in order to promote tourism throughout the country and create long weekends when public holidays fall on Tuesday or Thursday. Effective for 2023, tourist bridge holidays are scheduled for May 26, June 19, and Oct. 13.

Sick leave

Workers have the right to sick leave with full pay for a period of up to three months per year if their length of service is five years or less and for a period of up to six months if their length of service is more than five years. If the worker has family responsibilities, these entitlements are extended to six and 12 months, respectively. The worker is entitled to sick leave without pay for another 12 months, during which the employer is obliged to maintain the employment relationship.

In the event of sickness leave the employer must pay the employee’s salary for the first fifteen days. After the fifteenth day, the working insurance company will pay the sick leave to the employee.

Health coverage

Employers and employees are required to make social security contributions for family allowance, medical services, pensions and unemployment benefits.

All employees working in Argentina are covered by the Argentine social security system. Men 65 years and older and women 60 years and older are entitled to receive retirement benefits.

In both cases, the beneficiary must provide evidence of 30 years of service and social security payments. 

When employees reach 70 years old and have 30 years of contributions to the social security system, the employer must ensure that the employee begins the process of obtaining retirement and the governmental pension plan.

Additional benefits

In addition to healthcare benefits, employees in Argentina are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Argentina, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed. 

Updated: August 01, 2024 

Employee onboarding with an employer of record in Argentina

We write and validate all local employment contracts, streamlining the onboarding process for you and your Argentina employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Argentina, we will:   

• Schedule a welcome call to discuss HR and employment information for Argentina, as well as answer any questions 
• Prepare a customized employment contract in English or other local language 
• Share the employment contract and benefits information with the new employee for signature and review 
• Gather tax and banking information from the employee to set up payroll 
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll 

 The entire onboarding process for the employee is often completed in as little as two weeks. 

Partner with Safeguard Global as your Argentina employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Argentina. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today. 

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.