Argentina is the second-largest country in South America, and the eighth-largest country in the world. They benefit from rich natural resources, host a highly literate population, and an export-oriented agricultural sector. It has a "very high" rating on the Human Development Index and a relatively high GDP per capita.

Types of Contracts

• Indefinite contracts are the most widely used in Argentina. The contract is terminated with cause or resignation under the labor law.
• Fixed-term contracts have a specific life span and are largely used for project-based work. They can be extended up to a total duration of 5 years.

Job Title Restrictions

There are no restrictions on job titles in Argentina under the EOR employment model.

Working Hours

The maximum number of working hours in Argentina is 8 hours per day or 48 hours per week.

Overtime must not exceed 3 hours per day, or 30 hours per month, or 200 hours per year. Overtime worked between Monday and Saturday morning is paid at 50% above the employee’s normal salary. Saturday, Sunday, and public holiday overtime is paid at double the normal rate.

Public holiday work is typically paid at 50% to 100% above the standard rate.

Minimum Wage

The minimum wage is ARS202,800 per month (2024).

13th Month Salary

In Argentina, the 13th salary, known as "aguinaldo," is a mandatory annual bonus payment for employees. It is calculated based on the gross salary earned throughout the year, with employees receiving 1/12th of their annual salary for each month worked.

The bonus is typically paid in two installments with the first between June 1st and June 30th, and the second between December 1st and December 18th. The 13th salary is subject to taxes and deductions, and specific rules may apply depending on collective bargaining agreements or employment contracts.

Probation Period

Employees pay Income tax based on their level of salary.

Taxes & Local Employment Costs

Employee Taxes

Employees pay Income tax based on their level of salary.

The following social security-related contributions apply:

• Social Security - 18%
• Health Insurance - 6%
• Worker Risk Insurance - 2%

Employer Taxes & Contributions

The employer makes the following employment-related contributions:

• Social Security contribution - 18%
• Health Insurance -  6%
• Worker Risk Insurance -  2%
• Life Insurance -  0.6%

Annual Leave

Employees in Argentina are entitled to a minimum of 14 calendar days of annual leave which accumulates over a minimum of 6 months. The amount of annual leave increases by one day per year of service up to a maximum of 35 calendar days.

An employee can carry over to the next year a third of unused leave. Accumulated leave expires after 48 months. Employers have their policies regarding the maximum number of days that can be carried over and restrictions on the use of carried-over days.

At contract termination, unused leave is compensated.

Sick Leave

If an employee has worked for a company for less than 5 years, they are entitled to a maximum of 3 months of paid sick leave. Once they have worked for a company for more than five years, the paid sick leave is extended to 6 months.

The leave can be intermittent or continuous. The employer is responsible for paying the first 15 days of sick leave.

Maternity Leave

Female employees are entitled to 90 days of maternity leave with full pay, at least 30 days of which should be taken before childbirth. Commonly, the leave is split 45 days on either side of the delivery. Maternity leave is paid by the employer.

Paternity Leave

Fathers are entitled to 2 weeks of paternity leave in the event of childbirth or adoption. Paternity leave is funded by the employer.

Shared Parental Leave

Parents are entitled to parental leave to care for newborns or adopted children. The length of parental leave varies. The leave is paid by the company.

Bereavement Leave

Employees are entitled to bereavement leave paid by the company as follows:

• Death of spouse, common-law partner, children, or parents: 3 consecutive days;
• Death of brother or sister: 1 day.

‍

Benefits

Statutory Benefits

In addition to statutory leave, employees are entitled to the following statutory benefits:

• Social Security Contributions: Employers are required to make contributions to social security programs on behalf of their employees. Benefits derived from social security are:
  • Retirement pensions
  • Healthcare coverage
  • Unemployment benefits
• Workers' Compensation: provides employees compensation and medical benefits for work-related injuries or illnesses.
• Severance Pay: Employees who are terminated without just cause are entitled to receive severance pay, which is calculated based on their length of service and salary.
• 13th cheque: Also referred to as “aguinaldo”, the 13th cheque is mandatory. It is typically paid in 2 installments, in June, and by 18 December.

Termination Process

Employers in Argentina can terminate an employment contract without a justified case, subject to severance compensation. Termination with just cause does not entail payment of severance compensation — i.e. failure to fulfill their requirements, misconduct, or economic factors.

Notice Period

The statutory minimum notice period for the employer to terminate a contract of employment with or without cause is 10 days if the employee has less than 1 year of service, or 30 days if the employee has 1 or more years of service.

The statutory minimum notice period for the employee to terminate a contract with cause is 10 days if the employee has less than 1 year of service, or 30 days if the employee has 1 or more years of service. The statutory minimum notice period for the employee to terminate without cause is 10 days.

Notice to terminate the contract with or without cause during the probation period is 15 days. An employee can be paid cash in lieu of notice.

Severance Pay

An employee whose contract is terminated without reasonable cause is entitled to severance pay calculated as 1 month’s salary for every year served or fraction for a more than 3 months period. Any unused leave must be paid out in the employee’s final salary payment.

Argentinian law states that employees are entitled to receive an additional month’s salary called “Aguinaldo”. This 13th-month salary is payable in two semi-annual installments, due to be paid on or before June 30th and December 18th. The amount of each payment is equal to 50% of the highest monthly wage received in the previous 6 months.