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Argentina – Employer of Record

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Country Introduction – Argentina

Capital – Buenos Aries
Currency – Argentine Peso (ARS)
Population – 45.38 Million
GDP – $383.1 Billion (USD)
Language – Spanish
Major Religions – Christianity

Argentina covers most of the southern portion of the continent. The world’s eighth largest country, Argentina occupies an area more extensive than Mexico and the U.S. state of Texas combined.

Argentina has long played an important role in the continent’s history. Following three centuries of Spanish colonization, Argentina declared independence in 1816, and Argentine nationalists were instrumental in revolutionary movements elsewhere, a fact that prompted 20th-century writer Jorge Luis Borges to observe, “South America’s independence was, to a great extent, an Argentine enterprise.”

The country’s name comes from the Latin word for silver, argentum, and Argentina is indeed a great source of valuable minerals. More important, however, has been Argentina’s production of livestock and cereals, for which it once ranked among the world’s wealthiest nations. The country is the fifth leading exporter of wheat in the world. It is also famous for its beef exports and the country also has the highest consumption of red meat in the world. Argentina is the largest Spanish speaking country in the world.

Contract of Employment

In Argentina employment contracts are generally created for an indefinite period of time. Indefinite contracts do not need to be concluded in writing however, it is better to layout the terms and conditions of employment in writing. Employers must register employees in a Special Payroll Book, which is controlled by the Ministry of Labour.

Probation Period

Up to a maximum of 3 months. During the probation period should the employer decide to terminate the employment without cause there is no severance to pay however, the employer should give 15 days termination notice.


Employment can be terminated by the employee or the employer by giving a 1 month notice for employment that has lasted between 3 months up to 5 years. The notice period increases to 2 month for employment over 5 years of service.

Working Hours

Under Argentine employment contract law the maximum working hours per day are 8 hours up to a maximum of 48 hours per week, excluding breaks. Night shift is limited to 7 hours per night.


Overtime is limited to 3 hours per day or 30 hours per month, or 200 hours per year. For any requirements over this prior approval is required from the labour authority. Overtime is paid at 1.5x the salary rate for weekdays and 2x for Saturday (after 1 pm), Sunday or public holidays.

Annual Leave

Paid time off varies in line with the length of service of the employee.

–  Less than 5 years – 14 days of annual leave
–  5 to 10 years – 21 days of annual leave
–  10 to 20 years – 28 days of annual leave
–  More than 20 years – 35 days of annual leave

During the employees’ annual leave, the employee is entitled to their full salary plus any other benefits.

An employee is also entitled to the following paid leave:

–  10 days leave for marriage.
–  3 days leave for bereavement of their child, spouse or parents.
–  1 day leave for the bereavement of a sibling.
–  2 days of leave (up to a maximum of 10 days) for university or high school exams.

Sick leave

Employees who have less than 5 years of service are entitled to 3 months of paid sick leave. Once an employee has more than 5 years of service, they are entitled to 6 months of paid sick leave. All employers must have Employment Risk insurance, this is mandatory in Argentina. Whilst the employer will pay for the sick leave, the Employment Risk Insurance will pay for any treatments, injury, illness or rehabilitation for work related injuries.

Maternity Leave

Maternity leave is 90 days. A minimum of 30 days must be taken before the expected date of delivery and the remaining can be taken after birth. Maternity is paid by the Argentine Social Security system.

Paternity leave is 2 days.


VAT in Argentina is 21%.

The VAT rate increases to 27% for utility services (telecoms, gas, sewage, water and energy) not rendered to residential real estate.

The VAT rate reduces to 10.5% for certain transactions, such as; housing construction, medical assistance, sale and import of living bovine animals and transportation services within Argentina where the journey is less than 100km.

Income Tax

Up to 64,532.64  ;  5%
64,532.65 – 129,065.29 ;  9%
129,065.30 – 193,597.93 ;  12%
193,597.94 – 258,130.58  ;  15%
58,130.59 – 387,195.86  ; 19%
387,195.87 – 516,261.14  ;  23%
516,261.15 – 774,391.71  ;  27%
774,391.72 – 1,032,522.30  ;  31%
1,032,522.30 and over  ;  35%

Employer/Employee Contributions

Employer contributions – 26.91% to 29.91%

Pension Fund – 18% to 21%
Health Insurance – 6%
Labour Risk Insurance – 2.41%
Life Insurance – 0.50%

Employee contributions – 17%

Pension Fund – 11% (28,500.65 ARS maximum)
Social Security – 3% (28,500.65 ARS maximum)
Health Insurance – 3% (28,500.65 ARS maximum)

13th Month Salary

Argentinean law states employees are entitled to receive an additional months salary, Agunialdo. The 13th months salary is paid in two instalments, the first is paid before 30th of June and the second is before the 18th of December. The amount of the payment is equivalent to 50% of the highest salary received in the 6 months prior to payment.

Public Holidays

There are 18 public holidays in Argentina. Where the public holiday falls on a weekend, the day off is carried over to the next working day.

Severance Pay

Severance pay is calculated as one months’ salary for every year worked. If the contract of employment is terminated for economic reasons the severance becomes half a months’ salary for every year worked.

Work and Residence Permits (Expatriates)

In Argentina there are 4 categories of residency:

1.  Transitory – This is for people living in Argentina for less than 3 months. This is not a work visa.

2.  Technical – This is for foreigners who carry out professional or technical roles. This residency is obtained via the Argentinean Consulate in the home country of the person seeking the residency or can be applied in Argentina.

3.  Business/work – This visa is applied for by companies in Argentina who are employing foreigners. This visa is renewed every year, there is no limit to the number of renewals. The visa holder is able to live and work in Argentina.

4.  Temporary residency – This is for people who would like to stay in Argentina for an extended period of time. With this visa, the holder can live, work or study in Argentina.

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