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South America

Argentina

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Employer of Record (EOR) in Argentina

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Argentina Introduction

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.

Paid Leave and Statutory Leave

Parental Leave

Employees who give birth in Argentina are entitled to 90 days of paid leave (of which the mother must take at least 30 days before the birth). The employee may also request additional unpaid leave of up to six months after the birth. New fathers are entitled to 2 days of paid paternity leave.

Sick Leave

The length of allowed sick leave varies. If an employee has been employed at a company for less than 5 years, they get up to 3 months of paid sick leave. Once they have worked there for more than 5 years, the paid sick leave is extended to up to 6 months. If an employee remains stick after 12 months of leave, the employer can stop making salary payments but is required to retain the employee for 12 more months.

While the employer covers the sick pay, the Employment Risk Insurance covers treatment, sick pay, or rehabilitation for any work-related accident, injury, or illness after 15 days (the first 15 are paid by the employer).

Paid Leave

There are 16 national holidays in Argentina. Additional paid time off depends on the length of the employment contract. Employees who have worked for an employer for more than 6 months are entitled to 2 weeks of annual leave, and the amount of PTO increases with the length of employment, up to a maximum of 35 days per year.

Employees can receive paid leave under the following circumstances: 10 days for their marriage, 3 days for the death of a family member, and 2 days for university or high school exams.

Wage Requirements and Working Hours

In Argentina, the national minimum wage is 32,616 ARS per year and the work week is Monday to Friday. Working hours should not exceed 8 hours per day and 48 hours per week. However, work considered “unhealthy”, or night shifts (9p – 6a), limits employees to 7 hours of work per day.

Overtime hours must not exceed 3 hours per day, or 30 hours per month, or 200 hours per year. On weekdays, overtime is paid at an additional 50% of the salary, while weekend or holiday overtime is be paid at double the salary.

Termination Process

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

Notice periods for termination depend on how long the worker has been at the company. Employees with less than 5 years at the company are entitled to 1 month of notice, while employees with more than 5 years are entitled to 2 months of notice.

In lieu of notice, Argentine employers are also able to pay employees for the same number of days as the notice period, in lieu of giving notice. For example, you could terminate an employee with 4 years of service right away as long as you pay the employee 1 month of wages (in addition to any required severance pay).

Severance Pay

Severance pay is equal to 1 month’s salary for each year of employment. However, if a contract is terminated for economic reasons, the employee receives half a month’s salary for each year of service. Additionally, terminated employees are entitled to: seniority compensation, compensation in lieu of prior notice, proportional compensation for the 13th month salary, special compensation for union delegates (in certain cases), pregnant employees terminated within 7.5 months before or after their due date, and employees on sick leave.

Additional Information

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.

OVERVIEW
Language(s):
Spanish
Currency:
Argentine Peso (ARS)
Capital City:
Buenos Aires
Population:
46 Million
Cost of Living Rank:
106th
VAT (Valued Added Tax):
21%
Employer TaxES
26.91%
(estimated)

★  18% - Pension Fund

★  6% - Health Insurance

★  0.5% - Life Insurance

★  2.41% - Labor Risk Insurance

Simplified Global HR and Payroll.
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with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

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How Remofirst employs in Argentina

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Argentina get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Argentina are paid on time in Argentine Peso (ARS). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Argentina, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.